Core Viewpoint - The new materials industry is a rapidly growing sector with significant potential, driven by advancements in technology and increasing demand across various applications, including semiconductors, displays, and renewable energy [2][16]. Semiconductor Industry - The global semiconductor market reached $595 billion in 2021, with a projected growth to $790 billion by 2026, reflecting a compound annual growth rate (CAGR) of 6% [4][21]. - China's semiconductor materials market was valued at $119 billion in 2021, growing by 22.2% year-on-year, indicating a significant increase in domestic demand [36][41]. - The semiconductor materials market is characterized by high import dependency, particularly for critical materials like electronic gases and photoresists, presenting substantial opportunities for domestic production [5][41]. Display Materials - The global OLED materials market is expected to grow from approximately $900 million in 2019 to about $2.6 billion by 2024, with a CAGR of 23.6% [6]. - Key players in the display materials sector include Wanrun and Ruile New Materials, which are leading suppliers of LCD and OLED materials [6][20]. New Energy Materials - The new energy sector is experiencing rapid growth, with significant opportunities in battery materials such as composite copper foil, conductive carbon black, and sodium-ion battery materials [8][20]. - The market for photovoltaic materials, including reflective films and adhesives, is also expanding, driven by increasing demand for solar energy solutions [8][20]. Environmental Materials - Traditional chemical applications are witnessing upgrades and replacement opportunities, particularly in areas like molecular sieves and lubricating oil additives, where domestic companies are beginning to gain market share [10][11][19]. Policy and Market Dynamics - The Chinese government is emphasizing material self-sufficiency and has implemented policies to support the development of the new materials industry, particularly in response to international trade tensions [16][19]. - The market outlook for new materials remains positive, with projections indicating that China's new materials industry could reach a total output value of 10 trillion yuan by 2025 [2][15].

Group 1 - The report highlights the frequent release of new products by companies like Xiaomi and Honor, emphasizing the importance of the domestic production process for new materials [5][6] - The Chinese government is supporting equipment upgrades in the petrochemical and chemical industries with a funding of 200 billion yuan, which is expected to accelerate the modernization of these sectors [5][6] - The introduction of new products, such as Xiaomi's first SUV and Honor's latest smartphones, is seen as a significant advancement in China's consumer electronics sector, potentially driving the domestic supply chain and high-end material development [6][9] Group 2 - The report indicates that the securities sector may experience upward momentum after a period of consolidation, with technical indicators showing positive trends [11][12] - The Shanghai Composite Index has shown resilience, maintaining above key moving averages despite recent fluctuations, suggesting potential for further gains [19][20] - The report notes that large capital inflows into the market indicate strong buying interest, which may support continued upward movement in the securities sector [15][19] Group 3 - The report tracks industry performance, noting that the petrochemical index has underperformed compared to the broader market, while the basic chemical index has outperformed [7][22] - Specific sub-sectors such as membrane materials and other plastic products have shown significant price increases, indicating strong demand and potential investment opportunities [7][22] - The report emphasizes the importance of selecting resilient and advantageous sectors within the chemical industry, particularly those benefiting from supply-side reforms and domestic production initiatives [9][10]