Bank of China Securities·2025-09-29 02:42Investment Rating - The report rates the chemical industry as "Outperform" [2] Core Views - The report highlights the impact of rising international oil prices and the decline in prices of vitamins and nylon [2] - Key areas of focus for September include the effects of "anti-involution" on supply in related sub-industries, the importance of self-sufficiency in electronic materials companies, undervalued industry leaders, and stable dividend policies in energy companies [2][12] Industry Dynamics - The basic chemical industry experienced a decline of 0.95% in the week of September 22-28, ranking 17th among 31 primary industries [9] - The oil and petrochemical industry saw a smaller decline of 0.12%, ranking 10th [9] - Among 100 tracked chemical products, 25 saw price increases, 43 saw declines, and 32 remained stable [9] - The average price of 34% of products increased month-on-month, while 52% decreased [9] - The report notes significant fluctuations in the prices of various chemicals, with liquid ammonia and anhydrous hydrofluoric acid showing notable price increases [9] Price Trends - International oil prices rose, with WTI crude futures closing at $65.72 per barrel, a weekly increase of 4.85%, and Brent crude at $70.13 per barrel, up 5.17% [9] - The report indicates a potential for oil prices to remain high due to geopolitical risks and OPEC+ interventions, despite pressures from tariff policies and increased production [9] - The report also notes a decline in vitamin prices due to weak downstream demand, with vitamin A and E prices dropping significantly compared to last year [9][12] Investment Recommendations - The report suggests focusing on companies in the oil and gas sector, particularly those with stable dividend policies and strong performance in the upstream capital expenditure [12] - It recommends monitoring developments in new materials, especially in electronic materials and renewable energy sectors, which are expected to see significant growth [12] - Specific companies recommended for investment include China Petroleum, China Oilfield Services, and several technology firms in the semiconductor and electronic materials sectors [12]