Investment Rating - The report maintains an "Overweight" rating for the basic chemicals and oil and gas sectors [4]. Core Viewpoints - The overall price spread in the industry improved in April 2025, with downstream sectors expected to recover first due to cost reduction and demand improvement [1][8]. - The April PMI data indicates a slight contraction in the chemical raw materials and products industry, suggesting ongoing supply-demand mismatches [1][11]. - The report anticipates a recovery starting in the second half of 2025, driven by improved domestic demand and exports to Asia, Africa, and Latin America [1][11]. Summary by Sections Supply and Demand Dynamics - The price spread for downstream chemical products improved in April due to supply constraints and seasonal demand replenishment, while midstream products still await recovery [2][8]. - The April PMI data was reported at 49, indicating a contraction in the chemical sector, but a recovery is expected as domestic economic conditions improve [11][24]. Investment Strategy - The report suggests that the second half of 2025 may mark the beginning of an upward trend, with a focus on resilient internal and external demand and improved competitive landscapes [3][32]. - Recommended stocks include China Petroleum, Hengli Petrochemical, and Juhua Co., with a focus on companies with strong dividend yields and cost reduction capabilities [6][32]. Key Recommendations - The report highlights specific companies for investment based on their competitive positioning and potential for recovery, including: - China Petroleum (601857 CH) with a target price of 9.79 and an "Overweight" rating [6]. - Hengli Petrochemical (600346 CH) with a target price of 17.55 and an "Overweight" rating [6]. - Juhua Co. (600160 CH) with a target price of 31.92 and a "Buy" rating [6]. - Other recommended companies include Dongyue Group, Luxi Chemical, Meihua Biological Technology, and Xinghuo Technology [6][32].