Huaxin Securities·2025-06-16 07:14Investment Rating - The report maintains a "Buy" rating for several companies in the chemical industry, including Sinopec, PetroChina, and CNOOC, as well as specific stocks like Xinyangfeng and Senqilin [10]. Core Views - The report highlights significant price increases in sulfuric acid and sulfur, suggesting a focus on import substitution, domestic demand, and high dividend opportunities [6][8]. - The report notes that international oil prices have sharply risen due to geopolitical tensions, particularly the conflict between Iran and Israel, which may impact oil production and exports [6][21]. - The overall chemical industry remains under pressure, with mixed performance across sub-sectors, influenced by past capacity expansions and weak demand [22]. Summary by Sections Chemical Industry Investment Suggestions - The report suggests monitoring the tire industry, which is expected to perform better due to global strategies and tariff experiences [8]. - It emphasizes the acceleration of import substitution in the chemical sector, particularly for lubricating oil additives and special coatings [8]. - The report also highlights the self-sufficiency of nitrogen, phosphorus, and compound fertilizers in China, which are less affected by tariffs [8]. Price Movements - Notable price increases this week include sulfuric acid (up 7.24%) and sulfur (up 7.24%), while significant declines were seen in ammonium chloride (down 10.53%) and urea (down 9.95%) [20][22]. - The report indicates that the chemical industry is experiencing a weak overall performance, with some sectors like tires and lubricants showing better-than-expected results [22]. Key Companies and Earnings Forecast - The report provides earnings forecasts for several companies, indicating a positive outlook for firms like Xinyangfeng and Senqilin, with expected EPS growth [10][11].