Bank of China Securities·2025-10-28 07:07Investment Rating - The report rates the chemical industry as "Outperforming the Market" [2] Core Views - The report emphasizes the importance of focusing on the third-quarter earnings season, undervalued industry leaders, the impact of "anti-involution" on supply in related sub-industries, and the increasing significance of self-sufficiency in electronic materials companies [2][15] - It highlights the potential for sustained high oil prices, the ongoing recovery in the oil and gas exploration sector, and the growth opportunities in new materials, particularly in semiconductor and OLED materials [15][20] Summary by Sections Industry Dynamics - During the week of October 20-26, 2025, 24 out of 100 tracked chemical products saw price increases, while 43 experienced declines, and 33 remained stable. The average price of 28% of products increased month-on-month, while 56% decreased [10][15] - International oil prices rose, with WTI crude oil futures closing at $61.50 per barrel, a weekly increase of 6.88%, and Brent crude at $65.94 per barrel, up 7.59% [10][15] - The report notes that the average price of lithium carbonate for battery-grade reached 75,700.00 CNY/ton, a 3.46% increase from October 1 [10] Investment Recommendations - The report suggests focusing on the third-quarter earnings, undervalued industry leaders, and the impact of "anti-involution" on supply in related sub-industries. It also emphasizes the importance of self-sufficiency in electronic materials [15] - Long-term investment themes include the sustained high oil prices benefiting the oil and gas sector, rapid development in downstream industries, and the recovery of demand supported by policy initiatives [15][20] Key Stocks - Recommended stocks include China Petroleum, China National Offshore Oil Corporation, China Petrochemical Corporation, and several others in the new materials and electronic materials sectors [15][20]