Shanxi Securities·2025-07-03 08:02Investment Rating - The report maintains a rating of "B" for the new materials sector, indicating a leading position in the market [2]. Core Insights - The new materials sector has shown a significant increase, with the new materials index rising by 5.12%, although it underperformed compared to the ChiNext index by 0.57% [3]. - The report highlights the rapid growth in demand for sustainable aviation fuel (SAF) due to EU subsidies, which could significantly boost the market [6]. - The report suggests focusing on companies like Jiaao Environmental Protection, Zhuoyue New Energy, and Shanggou Environmental Energy, which are well-positioned to benefit from the increasing SAF demand [6]. Summary by Sections 1. Market Performance - The new materials sector has experienced a positive market performance, with various sub-sectors such as battery chemicals increasing by 9.13% and semiconductor materials by 4.09% over the past week [3][18]. - The overall market, including basic chemicals and new materials, has seen an increase, with the Shanghai Composite Index rising by 1.91% [14]. 2. Price Tracking - Prices for key materials such as PLA remain stable, with injection-grade PLA priced at 17,500 CNY/ton and film-grade PLA at 16,700 CNY/ton [4]. - Amino acids show slight price changes, with valine priced at 14,200 CNY/ton, reflecting a 0.35% increase [4]. 3. Investment Recommendations - The report recommends monitoring companies involved in SAF production and related technologies, as they are expected to benefit from EU subsidies aimed at increasing SAF procurement [6]. - Specific companies highlighted include Jiaao Environmental Protection, which has successfully produced bio-jet fuel, and Zhuoyue New Energy, which is advancing its bio-diesel project [6]. 4. Industry News - The report notes that the EU plans to invest 1.3 billion euros in subsidies for green aviation fuel, which is expected to significantly increase SAF demand [6]. - The report also mentions the ongoing price increases for SAF, with prices exceeding 2,200 USD/ton as of late June 2025 [6].