Investment Rating - The report maintains a "Recommended" rating for the basic chemical industry [1] Core Insights - The "14th Five-Year Plan" has highlighted the need to eliminate "involution" in the chemical industry, which has led to a significant decline in profitability during the previous five years. The new plan aims to create a healthy competitive environment that promotes sustainable high-quality development in the chemical sector [4] - The report emphasizes the transition of China's chemical industry towards a global leadership position, with expectations for continued quality upgrades and increased competitiveness on the global stage during the "15th Five-Year Plan" [4] - The focus on new demands and the development of strategic emerging industries such as new energy and new materials is expected to drive innovation and growth in the chemical sector [4] - The report identifies green and low-carbon initiatives as long-term development directions for the chemical industry, with a focus on clean energy utilization and carbon emission control [4] - Investment opportunities are highlighted in five key areas: improvement of profitability through reduced competition, sustained demand in specific chemical sectors, opportunities in high-end chemical materials, green energy chemical opportunities, and the expansion of Chinese companies in the global market [4][5] Summary by Sections - **Investment Opportunities**: The report suggests focusing on sectors such as polyester filament, organic silicon, pesticides, and spandex, with specific companies like New Fengming, Tongkun, and Jiangshan being highlighted [4] - **Supply and Demand Dynamics**: The report indicates that the supply-demand structure in the chemical industry will be optimized during the "15th Five-Year Plan," presenting a critical historical opportunity for growth [4] - **Emerging Technologies**: The report points out that new technologies related to biomanufacturing and hydrogen energy will be crucial for the development of high-end chemical materials [4]