wanhua(SH:600309) Huafu Securities·2025-11-30 12:13Investment Rating - The report does not explicitly state an investment rating for the industry Core Views - The chemical sector has shown positive performance with the Shanghai Composite Index rising by 1.4%, the ChiNext Index by 4.54%, and the CSI 300 by 1.64% during the week. The CITIC Basic Chemical Index increased by 3.49%, and the Shenwan Chemical Index rose by 2.98% [2][14] - Key sub-industries within the chemical sector have experienced varied performance, with membrane materials leading at 7.48% growth, followed by titanium dioxide at 5.85% and chlor-alkali at 4.57% [2][17] Summary by Sections Industry Dynamics - Wanhua Chemical announced a price increase of $200/ton for MDI products in Southeast Asia and South Asia starting December 1, 2025, due to market conditions and supply stability [3] - South Korea raised anti-dumping duties on PET film imports from China, significantly increasing the tax rate on Tianjin Wanhua's products from 3.84% to 36.98% [3] Investment Themes - Tire Sector: Domestic tire companies are becoming increasingly competitive, with a focus on scarce growth targets. Recommended companies include Sailun Tire, Senqcia, General Motors, and Linglong Tire [4] - Consumer Electronics: A gradual recovery in consumer electronics is anticipated, benefiting upstream material companies. Key players in the panel supply chain include Dongcai Technology, Stik, Light Optoelectronics, and Ruile New Materials [4] - Phosphate Chemicals: Supply constraints due to environmental policies and increasing demand from the new energy sector are tightening the supply-demand balance. Recommended companies include Yuntianhua, Chuanheng Co., Xingfa Group, and Batian Co. [5] - Fluorochemicals: The reduction of production quotas for second-generation refrigerants is stabilizing profitability, with a focus on companies like Jinshi Resources and Juhua Co. [5] - Economic Recovery: As the economy improves, leading chemical companies are expected to benefit significantly from price and demand recovery. Recommended companies include Wanhua Chemical, Hualu Hengsheng, and Baofeng Energy [9] - Vitamin Supply Disruptions: BASF's supply issues with vitamins A and E are expected to create market imbalances, with companies like Zhejiang Medicine and New Hecheng recommended for attention [9] Sub-Industry Reviews - Polyurethane: Pure MDI prices in East China rose to 19,700 RMB/ton, a 1.55% increase week-on-week, with operating rates stable at 68% [30] - Tire Industry: Full steel tire operating rates increased to 63.91%, while semi-steel tire rates decreased to 72.37% [54] - Fertilizers: Urea prices rose to 1,679.1 RMB/ton, with operating rates for urea at 86.4% [67][68] - Vitamins: Vitamin A prices remained stable at 63 RMB/kg, while Vitamin E prices fell by 2.88% to 50.5 RMB/kg [86][87] - Fluorochemicals: Fluorspar prices decreased to 3,350 RMB/ton, with a decline in operating rates to 34.12% [91]