Tebon Securities·2025-06-08 09:27Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Views - The basic chemical sector is expected to benefit from a new round of supply-side reforms, with a focus on price increases for products like chlorantraniliprole and SAF [5][32] - The report highlights the resilience of major companies in the sector, suggesting that core assets are entering a long-term value zone [16][17] Summary by Sections 1. Core Views - The report emphasizes that policies initiated since September 2024 are likely to improve supply-demand dynamics in the chemical sector, potentially boosting demand for end-use chemical products [16] - It identifies chlorantraniliprole as a key product to watch due to supply constraints and rising prices, with a significant price increase of 123.9% noted recently [32] - SAF prices are also recovering, driven by improved procurement conditions in Europe and rising costs of raw materials [33][34] 2. Overall Performance of the Chemical Sector - The basic chemical industry index rose by 2.6% in the week of May 30 to June 6, outperforming both the Shanghai Composite Index and the ChiNext Index [19][20] - Year-to-date, the basic chemical industry index has increased by 5.8%, significantly outperforming the broader market indices [19][25] 3. Individual Stock Performance - Among 424 stocks in the basic chemical sector, 347 stocks rose, with notable gainers including Lianhua Technology (+39.1%) and Lingpai Technology (+29%) [28][29] - Conversely, stocks like Hengtian Hailong (-15.9%) and Suzhou Longjie (-12.6%) experienced significant declines [28][29] 4. Key News and Company Announcements - The report highlights the price surge of chlorantraniliprole and SAF, indicating a favorable market environment for these products [32] - It discusses the supply constraints faced by chlorantraniliprole producers, particularly due to the dominance of a few key players in the market [32] - The report also notes the potential for SAF companies in China to benefit from increased demand and improved procurement conditions in Europe [34]