Investment Rating - Industry Rating: Neutral (maintained rating) [6] Core Insights - In July, the industrial added value of the chemical raw materials and chemical products manufacturing industry grew by 7.2% year-on-year, while the overall industrial added value increased by 5.7% [1][13] - The basic chemical sector increased by 3.4% last week, underperforming the CSI 300 index, which rose by 4.18% [4][16] - Key chemical products such as nitric acid and PTA saw price increases, with nitric acid prices rising by 12.9% and PTA prices increasing by 4.62% [2][3][30] Summary by Sections 1. Key News Tracking - The industrial added value for the chemical raw materials and chemical products manufacturing industry increased by 8.0% from January to July [1][13] - The fixed asset investment in the chemical raw materials and chemical products manufacturing industry decreased by 4.7% year-on-year [13] 2. Key Chemical Product Price Monitoring - Among 345 tracked chemical products, 70 saw price increases, while 77 experienced declines [27] - The top five chemical products with the highest price increases included carbon dioxide (+18.4%), nitric acid (+12.9%), and butane (+8.9%) [2][30] 3. Sector Performance - The basic chemical sector ranked 13th among all sectors in terms of weekly performance, with significant gains in sub-sectors like other rubber products (+7.06%) and polyurethane (+6.37%) [4][17] - The PB ratio for the basic chemical sector is 2.35, compared to 1.68 for all A-shares, while the PE ratio stands at 28.08 versus 17.19 for all A-shares [25][26] 4. Focused Sub-industry Insights - The report highlights stable demand and global supply dominance in certain sub-industries, recommending companies like Jinhui Industrial and Wanhu Chemical [5] - It also emphasizes the importance of domestic demand in countering tariff impacts, particularly in fertilizers and refrigerants [5] 5. Investment Opportunities - The report identifies investment opportunities in companies like Lite Optoelectronics and Aolai Technology, focusing on supply replacement gaps [6]