Shenwan Hongyuan Securities·2025-10-14 09:00Investment Rating - The report maintains an "optimistic" rating for the chemical industry [4] Core Insights - Q3 is traditionally a low season for downstream chemical products, with prices of chemical products retreating from high levels. However, high demand in sub-sectors like agricultural chemicals supports performance [3][4] - The supply side of the chemical sector is nearing the end of capital expenditure, and policies aimed at reducing excess capacity are expected to accelerate the exit of outdated production capacity. Demand is anticipated to trend upward in the long term due to stabilizing oil prices and easing liquidity [4] Summary by Relevant Sections Agricultural Chemicals - The agricultural chain is expected to see steady growth in fertilizer demand due to increasing cultivated areas and higher penetration of genetically modified crops. Key companies to watch include Hualu Hengsheng and Baofeng Energy for nitrogen fertilizers, Yuntianhua and Xingfa Group for phosphate fertilizers, and Yara International for potash fertilizers [4] Textile and Apparel Chain - The textile and apparel chain has maintained high growth rates, with supply-side production peaks having passed. Companies like Luxi Chemical and Tongkun Co. are highlighted for their potential in this sector [4] Export-Related Chemicals - With overall overseas inventory at historical lows and expectations of interest rate cuts, demand for export-related chemical products is expected to rise. Key companies include Juhua Co. and Sanmei Co. in the fluorochemical sector, and Wanhua Chemical in the MDI segment [4] New Materials - The report emphasizes the acceleration of domestic self-sufficiency in key materials, particularly in semiconductor materials and OLED panel materials. Companies like Yake Technology and Ruijie New Materials are noted for their growth potential [5]