Bank of China Securities·2025-09-22 01:14Investment Rating - The report rates the chemical industry as "Outperform the Market" [2] Core Views - The report highlights the impact of "anti-involution" on the supply side of related sub-industries, the increasing importance of self-controllable electronic materials companies, undervalued industry leaders, and energy companies with stable dividend policies [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 growth potential in new materials, particularly in electronic materials and renewable energy materials [10] Industry Dynamics - As of September 21, 2025, among 100 tracked chemical products, 33 saw price increases, 31 saw decreases, and 36 remained stable. 40% of products had month-on-month average price increases, while 47% saw declines [9] - International oil prices experienced slight declines, with WTI crude oil futures closing at $62.68 per barrel, down 0.02%, and Brent crude oil futures at $66.68 per barrel, down 0.46% [9][10] - Urea prices decreased, with the domestic average price at 1,675 RMB per ton, down 0.95% week-on-week and 11.70% year-on-year [10] - Methionine prices also fell, with the domestic average at 21.65 RMB per kilogram, down 0.69% week-on-week but up 5.71% year-on-year [10] Investment Recommendations - The report recommends focusing on the following areas: 1. The impact of "anti-involution" on supply in related sub-industries 2. Electronic materials companies in the context of increasing self-control 3. Undervalued industry leaders 4. Energy companies with stable dividend policies [10] - Long-term investment themes include the sustained high prosperity of the oil and gas extraction sector, rapid development in downstream industries, and the potential for recovery in demand supported by policy [10] - Recommended companies include China Petroleum, China National Offshore Oil Corporation, China Petrochemical Corporation, and various technology and chemical firms [10]