Bank of China Securities·2025-09-12 03:36Investment Rating - The report rates the chemical industry as "Outperform" [2] Core Views - The report highlights the impact of international oil price fluctuations and the recent price changes in TDI and acetic acid, suggesting a focus on supply-side influences from "anti-involution" trends, the importance of self-sufficiency in electronic materials, undervalued industry leaders, and stable dividend policies in energy companies [2][10] - It recommends a mid-to-long-term investment strategy focusing on high oil prices, the growth of the oil and gas extraction sector, and the rapid development of downstream industries, particularly in new materials [10] Industry Dynamics - As of September 7, the TTM price-to-earnings ratio for the SW basic chemical sector is 25.10, at the 74.71% historical percentile, while the price-to-book ratio is 2.19, at the 51.87% historical percentile. For the SW oil and petrochemical sector, the TTM price-to-earnings ratio is 11.93, at the 28.18% historical percentile, and the price-to-book ratio is 1.18, at the 24.04% historical percentile [10] - The report notes significant impacts from tariff policies and oil price volatility on the industry this year, with a focus on several key areas for September [2][10] Key Recommendations - The report suggests focusing on companies with strong performance in the following areas: 1. Oil and gas extraction with sustained high activity levels and robust dividend policies 2. New materials, particularly in electronic materials and renewable energy sectors, with significant growth potential [10] - Specific companies recommended include China Petroleum, China National Offshore Oil Corporation, China Petrochemical Corporation, and several others in the new materials and energy sectors [10] Price Changes and Market Analysis - In the week of September 1-7, 29 chemical products saw price increases, 39 experienced declines, and 32 remained stable. Notable price increases were observed in NYMEX natural gas, bisphenol A, and acetic acid, while TDI and other products saw significant price drops [9][34] - The report indicates that the average price of acetic acid increased by 2.12% week-on-week, while TDI prices fell by 6.45% [9][34]