Tebon Securities·2025-05-19 13:51Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Viewpoints - The basic chemical sector is experiencing a recovery in fundamentals due to price increases and cost improvements, driven by eased US-China tariff policies, which have boosted global economic confidence and chemical product demand [32][33] - The current period is seen as an optimal configuration window for leading chemical companies, with significant projects coming online and improving valuation expectations [33] - The capital expenditure in the chemical industry has shown a downward trend, confirming a turning point in the capacity cycle, with expectations for marginal improvements in supply [34] Summary by Sections 1. Core Viewpoints - Policies aimed at improving supply-demand dynamics are expected to lead to investment opportunities in the chemical sector [16] - Core assets are entering a long-term value configuration, with potential for valuation and profit recovery [16] - Supply constraints in certain sectors are likely to lead to price elasticity, with specific companies poised to benefit [17] 2. Overall Performance of the Chemical Sector - The basic chemical industry index increased by 1.8% during the week, outperforming both the Shanghai Composite Index and the ChiNext Index [19][20] - Year-to-date, the basic chemical industry index has risen by 5.1%, significantly outperforming the broader market indices [19] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the basic chemical sector, 303 stocks rose, with notable gainers including Yushansha A (+50.6%) and Jitai Co. (+47.1%) [27][28] - The report highlights the top ten gainers and losers in the sector, indicating a diverse performance landscape [29] 4. Key News and Company Announcements - Recent US-China tariff adjustments are expected to positively impact chemical product prices and demand [31][32] - Major projects from leading companies are coming to fruition, enhancing their market positions and valuations [33] - Several companies have announced significant financial maneuvers, including capital increases and strategic partnerships [36]