Investment Rating - The report maintains an "Overweight" rating for the basic chemical industry, expecting the industry index to outperform the market index by more than 10% in the next six months [30]. Core Insights - As of December 11, the Shenwan Basic Chemical Index has decreased by 0.7% over the past two weeks, underperforming the CSI 300 Index by 1.5 percentage points, ranking 18th among 31 Shenwan industries. Year-to-date, the index has increased by 25.1%, outperforming the CSI 300 Index by 9.4 percentage points, ranking 7th among 31 industries [4][11]. - In the past two weeks, among the sub-sectors of the Shenwan Basic Chemical Index, only two sub-sectors saw gains: Non-metallic Materials increased by 2.1% and Plastics by 1.0%. Five sub-sectors declined, with Chemical Raw Materials down 2.6%, Chemical Fibers down 1.8%, Agricultural Chemicals down 1.1%, Chemical Products down 0.3%, and Rubber down 0.1% [4][12]. - Among the 404 listed companies in the Shenwan Basic Chemical Index, 118 saw their stock prices rise, with Longgao Co., Daoming Optics, and Yongguan New Materials leading with increases of 29.4%, 23.8%, and 17.4%, respectively. Conversely, 282 companies experienced declines, with Changhua Chemical, Huasoft Technology, and Chenguang New Materials falling by 16.0%, 15.0%, and 14.4%, respectively [4][13]. Summary by Sections Market Review - The Shenwan Basic Chemical Index has shown mixed performance, with a slight decline recently but strong year-to-date growth [4][11]. Chemical Product Price Trends - Recent price changes include increases in Synthetic Ammonia (+2.80%), TDI (+2.49%), and BOPET (+1.66%), while Urea (-0.53%) and PTA (-1.07%) saw declines [19][20]. Key Industry News - The National Energy Administration projects that China's crude oil production will reach 215 million tons in 2025, a historical high, with natural gas production expected to reach 260 billion cubic meters, a 35% increase from the end of the 13th Five-Year Plan [4][23]. - A meeting organized by the China Phosphate and Compound Fertilizer Industry Association discussed stabilizing phosphate fertilizer prices and ensuring supply during the spring farming season, suggesting a "combination punch" approach to stabilize market expectations [4][26][24]. Weekly Industry Perspective - The report emphasizes the need for measures to stabilize phosphate fertilizer prices and supply, alongside a positive outlook for refrigerant companies benefiting from rising prices [4][26]. Recommended Stocks - The report suggests focusing on Sanmei Co. (603379) and Juhua Co. (600160) due to their strong positions in the refrigerant market and overall industry growth potential [4][28].

Core Viewpoint - Zhejiang Sanmei Chemical Co., Ltd. expects significant growth in net profit for the first half of 2025, projecting an increase of 146.97% to 171.67% compared to the same period last year [1][2]. Group 1: Performance Forecast - The company anticipates a net profit attributable to shareholders ranging from 947.619 million to 1,042.381 million yuan for the first half of 2025, an increase of 563.9224 million to 658.6844 million yuan year-on-year [1][2]. - The expected net profit after deducting non-recurring gains and losses is projected to be between 939.019 million and 1,033.781 million yuan, reflecting a year-on-year increase of 151.01% to 176.34% [1][2]. Group 2: Previous Year’s Performance - In the first half of 2024, the company reported a total profit of 482.9905 million yuan and a net profit attributable to shareholders of 383.6966 million yuan [2]. - The basic earnings per share for the first half of 2024 were 0.63 yuan [2]. Group 3: Reasons for Profit Increase - The increase in profit is attributed to the ongoing production quota management of hydrofluorocarbons (HFCs), an optimized competitive landscape, and growing downstream demand, leading to a steady rise in market prices for the company's fluorinated refrigerants [2]. - The company expects non-recurring gains and losses for the first half of 2025 to amount to 8.6 million yuan, which includes government subsidies, investment income, and asset disposal gains, with a decrease of 999,800 yuan compared to the previous year [2].