Investment Rating - The report rates the chemical industry as "Outperforming the Market" [1] Core Views - The report highlights the recent price movements in lithium carbonate, international oil prices, and organic silicon prices, with a focus on the implications of these changes for various sub-industries [1][7] - Key areas of focus for August include mid-year report trends, the impact of "anti-involution" on supply in related sub-industries, the importance of self-sufficiency in electronic materials companies, and stable dividend policies in energy companies [1][8] Industry Dynamics - In the week of August 11-17, 2025, among 100 tracked chemical products, 28 saw price increases, 42 saw declines, and 30 remained stable. Overall, 57% of products had a month-on-month average price increase, while 37% saw a decrease [2][7] - The average price of lithium carbonate increased by 17.48% compared to the previous week, reaching 84,000 CNY/ton, marking a cumulative increase of 41.18% since June 20 [2][7] - International oil prices fell, with WTI crude oil futures closing at 62.80 USD/barrel (down 1.69%) and Brent crude at 65.85 USD/barrel (down 1.11%) [2][7] - Organic silicon prices decreased by 8.00% to an average of 11,500 CNY/ton, attributed to weak terminal demand and the conclusion of pre-sale orders [2][7] Investment Recommendations - The report suggests focusing on mid-year report trends, the effects of "anti-involution" on supply, the significance of self-sufficiency in electronic materials, and the stability of dividend policies in energy companies [1][8] - Long-term investment themes include the sustained high prices of crude oil, the ongoing recovery of the oil service industry, and the rapid development of downstream industries, particularly in new materials [8] - Recommended stocks include China Petroleum, China National Offshore Oil Corporation, China Petrochemical Corporation, and several technology and chemical companies [8][9]

Core Viewpoint - The article discusses the supply chain issues and investment opportunities in the semiconductor chemical mechanical polishing (CMP) materials market, particularly focusing on the impact of Taiwan's export controls on the supply of DSTl slurry and the growth potential of CMP materials in the semiconductor industry. Group 1: CMP Slurry Supply Issues - DSTl slurry supply has been suspended due to Taiwan's export control restrictions, with only five months of inventory remaining (267 barrels) [2] - DSTl slurry is critical for the CMP process in semiconductor manufacturing, enhancing wafer flatness and surface quality [2] Group 2: Investment Logic in CMP Materials - The demand for CMP materials is expected to grow rapidly due to advancements in process nodes, increased wiring density, and the transition from 2D NAND to 3D NAND technology [4] - CMP materials account for 7% of the semiconductor manufacturing material costs, with CMP slurry and pads making up 49% and 33% of CMP material costs, respectively [4] - The global CMP materials market is projected to grow from $3.3 billion in 2023 to over $4.2 billion by 2027 [4] Group 3: CMP Pad Market Overview - The global CMP pad market grew from $650 million in 2016 to $1.13 billion in 2021, with a CAGR of 11.69% [5] - In China, the CMP pad market increased from 810 million yuan in 2016 to 1.31 billion yuan in 2021, with a CAGR of 10.09% [5] - Dow DuPont dominates the global CMP pad market with a 79% share, while domestic company Dinglong has become a key player in China [6] Group 4: CMP Slurry Market Overview - The global CMP slurry market expanded from $1.1 billion in 2016 to $1.43 billion in 2021, with a CAGR of 5.39% [7] - The Chinese CMP slurry market grew significantly, from 1.23 billion yuan in 2016 to 2.2 billion yuan in 2021, with a CAGR of 12.28% [7] - Major global players in the CMP slurry market include Cabot, Versum Materials, and Dow, with China being the largest demand region [7] Group 5: Domestic Companies in CMP Materials - Dinglong has established itself as the only domestic supplier mastering the entire CMP pad production process, achieving significant breakthroughs in the field [6][12] - Anji Technology, a leading domestic CMP slurry company, reported revenues of 1.075 billion yuan in 2023, capturing a significant market share [22][23] - Shanghai Xinyang and Jiangfeng Electronics are also notable players in the CMP materials sector, focusing on various CMP products [36][37] Group 6: Future Trends and Opportunities - The future of CMP materials is expected to trend towards specialization and customization, providing opportunities for new entrants in the market [8] - Companies focusing on new technologies for polishing liquids, such as those related to SiC, and those mastering upstream particle development are recommended for investment [8]

强于大市 化工行业周报 20250518 基础化工 | 证券研究报告 — 行业周报 2025 年 5 月 20 日 国际油价、 MDI 、涤纶短纤价格上涨，海外天然 气价格下跌 五月份，行业受关税相关政策、原油价格大幅波动等因素影响较大，建议整体均衡配置，关注 自主可控日益关键的电子材料公司，以及分红派息政策稳健的能源企业等。 行业动态 投资建议 风险提示 地缘政治因素变化引起油价大幅波动；全球经济形势出现变化。 相关研究报告 《化工行业周报 20250511》20250512 《化工行业周报 20250505》20250506 《2025 年 4 月中共中央政治局会议化工行业相 关要点及解读》20250505 中银国际证券股份有限公司 具备证券投资咨询业务资格 基础化工 证券分析师：余嫄嫄 (8621)20328550 yuanyuan.yu@bocichina.com 证券投资咨询业务证书编号：S1300517050002 qiyan.fan@bocichina.com 证券投资咨询业务证书编号：S1300525040001 本周（05.12-05.18）均价跟踪的 100 个化工品种中，共有 43 个品 ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future growth in the semiconductor materials sector [5]. Core Insights - The company's revenue for 2024 reached 3.338 billion RMB, a year-on-year increase of 25.14%, with a net profit attributable to shareholders of 521 million RMB, up 134.54% [2]. - The semiconductor materials segment is driving revenue growth, with a reported income of 1.52 billion RMB in 2024, reflecting a 77.40% increase year-on-year [3]. - The company has issued convertible bonds to expand its production capacity for photolithography and semiconductor materials, raising 910 million RMB for key projects [4]. Summary by Sections Performance Review - In Q1 2025, the company achieved a revenue of 824 million RMB, a 16.37% increase year-on-year, and a net profit of 141 million RMB, up 72.84% [2]. Operational Analysis - The semiconductor materials business is a key growth driver, with significant market penetration in domestic wafer and panel manufacturers [3]. - The company has optimized its operational efficiency, reducing its expense ratio to 26.26% in 2024, while maintaining a research and development expense ratio around 14% [3]. Profit Forecast and Valuation - Projected net profits for 2025-2027 are 684 million RMB, 876 million RMB, and 995 million RMB, respectively, with corresponding EPS of 0.73, 0.93, and 1.06 RMB [5]. - The current price-to-earnings ratios are estimated at 41, 32, and 28 times for the years 2025, 2026, and 2027, respectively [5].