Tebon Securities·2025-06-03 11:44Investment Rating - The report maintains an "Outperform" rating for the chemical industry [2] Core Viewpoints - The report suggests that the current period may represent the best configuration window for leading chemical companies, with a potential new cycle of supply-side reform expected to commence [5][15] - The chemical industry is anticipated to enter a new long-term prosperity cycle, driven by policy initiatives aimed at improving supply-demand dynamics [15][16] Summary by Sections 1. Core Viewpoints - Policies initiated since September 2024 are expected to boost economic confidence and chemical product demand [15] - The current expansion cycle in the chemical sector may be nearing its end, with significant improvements in domestic supply anticipated [15][30] - Key investment themes include focusing on core assets, industries facing supply constraints, and sectors with upward demand certainty [15][16][17] 2. Overall Performance of the Chemical Sector - The chemical sector index outperformed the Shanghai Composite Index by 1.2 percentage points and the ChiNext Index by 2.3 percentage points during the week of May 22-29, 2025 [7][18] - Year-to-date, the chemical sector index has increased by 4.5%, significantly outperforming both the Shanghai Composite and ChiNext indices [18][24] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the chemical sector, 284 stocks rose while 135 fell during the week [27] - The top gainers included Guangkang Biochemical (+58.7%) and Lianhua Technology (+39%) [27][28] 4. Key News and Company Announcements - Recent incidents, including explosions at chemical facilities, have prompted government oversight and may catalyze a new cycle in the chemical industry [29][30] - Companies like Wanhu Chemical and Nuobing have announced significant cash dividends, reflecting strong financial positions [31][34]