Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the industry [5] Core Insights - The epoxy active diluents are expected to see sustained demand growth due to their excellent properties and wide applications, particularly in composite materials, coatings, electronics, and adhesives [2] - The recent fire incident at XinYuan Technology, the largest global producer of epoxy active diluents, may lead to a temporary shortage in supply, impacting the global market [3] - Price increases have been observed in the market due to supply tightness, with significant price hikes reported for various active diluents [4] Summary by Sections - **Industry Overview**: The global consumption of epoxy active diluents was approximately 228,000 tons in 2021, with significant demand from composite materials (32%), coatings (16%), and electronics (15%) [2] - **Market Dynamics**: The rapid growth of wind power installations in China is expected to drive demand for epoxy active diluents, with a projected increase of 51.39 GW in new installations in the first half of 2025, a year-on-year increase of 99% [2] - **Supply Chain Impact**: XinYuan Technology has a production capacity of 50,000 tons and accounted for 20% of the global market share in 2021. The fire incident may disrupt supply chains and lead to a temporary shortage [3] - **Price Trends**: Recent market conditions have led to significant price increases for epoxy active diluents, with reported price hikes of 18%, 16%, and 24% for different products as of November 21 [4] - **Investment Opportunities**: Companies such as Kangda New Materials and Huangma Technology are highlighted as potential investment opportunities due to their production capacities in epoxy resin diluents [11]