Bank of China Securities·2025-09-15 06:35Investment Rating - The report rates the chemical industry as "Outperforming the Market" [2] Core Views - The report highlights the impact of "anti-involution" on supply in related sub-industries, the increasing importance of self-sufficiency in electronic materials companies, undervalued industry leaders, and stable dividend policies in energy companies [2][10] - It suggests that the oil price is expected to remain at a medium to high level, with continued high prosperity in the oil and gas extraction sector, and emphasizes the importance of policy support for demand recovery in 2025 [10] Summary by Sections Industry Dynamics - As of September 14, the TTM price-to-earnings ratio for the SW basic chemical sector is 25.62, at the 99.50 percentile historically, while the price-to-book ratio is 2.24, at the 80.12 percentile [10] - The SW oil and petrochemical sector has a TTM price-to-earnings ratio of 11.84, at the 84.48 percentile historically, and a price-to-book ratio of 1.17, at the 53.35 percentile [10] Investment Recommendations - The report recommends focusing on the following areas: 1. The impact of "anti-involution" on supply in related sub-industries 2. The critical importance of self-sufficiency in electronic materials companies 3. Undervalued industry leaders 4. Energy companies with stable dividend policies [2][10] - Long-term investment themes include the sustained high prosperity of the oil and gas extraction sector and the rapid development of downstream industries, particularly in new materials [10] Key Stocks to Watch - Recommended stocks include China Petroleum, China National Offshore Oil Corporation, China Petrochemical Corporation, and several technology and chemical companies such as Anji Technology, Yake Technology, and Jiangfeng Electronics [2][10] Price Trends - In the week of September 8-14, 36 chemical products saw price increases, 36 saw decreases, and 28 remained stable. The average price of 41% of tracked products increased month-on-month, while 47% decreased [9][32] - The report notes specific price movements, such as a decrease in urea prices by 1.69% compared to the previous week and a significant drop in trichlorosucrose prices by 8.11% [9][32]