Bank of China Securities·2025-11-16 08:20Investment Rating - The report rates the chemical industry as "Outperform the Market" [3] Core Views - The report highlights the increase in overseas natural gas prices and lithium hexafluorophosphate prices, while methionine prices have decreased. It suggests focusing on sectors mentioned in the "14th Five-Year Plan," undervalued leading companies, the impact of "anti-involution" on supply, and electronic materials companies under the context of self-sufficiency [3][10]. Summary by Sections Industry Dynamics - In the week of November 10-16, 2025, among 100 tracked chemical products, 42 saw price increases, 30 saw price decreases, and 28 remained stable. The average price of 31% of products increased month-on-month, while 56% decreased, and 13% remained unchanged. The top gainers included butyl acetate and sulfur, while the largest declines were seen in pure pyridine and methionine [8][29]. Price Trends - The average price of lithium hexafluorophosphate rose to 135,000 CNY/ton, marking a 13.45% increase week-on-week and a 141.07% increase year-on-year. Conversely, methionine's average price fell to 19.55 CNY/kg, down 1.76% week-on-week and 0.91% year-on-year [31][32]. Investment Recommendations - The report recommends focusing on sectors highlighted in the "14th Five-Year Plan," undervalued leading companies, and the impact of supply-side reforms. It suggests a mid-to-long-term investment strategy that includes companies in emerging fields such as semiconductor materials and new energy materials, with specific recommendations for companies like Wanhua Chemical and Hualu Hengsheng [10][29]. Market Performance - The basic chemical industry index rose by 2.61%, ranking 9th among 31 primary industries, while the oil and petrochemical sector increased by 2.29%, ranking 11th [8][10]. Key Stocks - The report identifies "Golden Stocks" for November as Hualu Hengsheng and Yake Technology, highlighting their strong performance and growth potential [5][11][17].