Core Insights - The report by Nova Institute highlights the significant growth potential of the biobased polymer industry, with a projected compound annual growth rate (CAGR) of 13% from 2024 to 2029 [2] - Biodegradable biobased polymers are expected to grow at a CAGR of 17%, while non-biodegradable biobased polymers will see a more moderate growth rate of 10% [2] - Asia and North America are set to dominate the global biobased polymer supply, collectively accounting for over 80% of the market by 2029, while Europe’s market share is projected to decline from 13% to 10% [2] Market Growth Potential - The biobased polymer market is anticipated to perform well in 2024, with strong growth expected in the coming years [2] - The average capacity utilization for biodegradable biobased polymers is currently at 65%, indicating significant room for capacity expansion and market development [2] - Non-biodegradable biobased polymers have a high capacity utilization rate of 90%, reflecting strong market demand [2] Product Differentiation - In 2024, a total of 4.2 million tons of biobased polymers are expected to be produced, with cellulose acetate (CA) and epoxy resins leading the market, accounting for 26% and 32% of total production, respectively [3] - 100% biobased PLA is widely used in packaging and medical applications, representing 8% of the total production [3] - The production capacity growth from 2023 to 2024 is primarily driven by the expansion of PLA and epoxy resin capacities in Asia, along with increased polyurethane production globally [3] Industry Challenges and Responses - Global brands are key drivers in the biobased polymer market, actively shifting strategies towards sustainable and climate-friendly solutions [4] - Europe faces significant challenges due to a lack of cohesive policy frameworks, which hampers the full realization of biobased polymers' advantages [4] - The industry also contends with technical bottlenecks and high production costs, making it difficult to compete with traditional fossil-based polymers [4] Future Outlook - The biobased polymer industry is poised for unprecedented growth opportunities, particularly led by Asia's capacity expansion and technological innovations [5] - With ongoing technological advancements, improved policies, and sustained market demand, biobased polymers are expected to capture a larger market share in the future [5] - Collaboration among regions is essential to overcome industry development bottlenecks and elevate the biobased polymer sector to new heights [5]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [6] Core Viewpoints - The construction sector has outperformed the market recently, with a 2.23% increase compared to the 2.09% rise in the CSI 300 index, indicating a positive trend in the industry [1] - Significant price increases in cellulose-related products have been observed, highlighting the potential for domestic substitution to drive performance and valuation catalysts, with a strong recommendation for Sanwei Chemical [1][24] - The issuance of special bonds remains high, suggesting a focus on the conversion rhythm of physical construction work in the future [4] Summary by Sections 1. Progress of Domestic Substitution for Cellulose Products - Acetic cellulose (CA) is primarily used in tobacco filters, with China consuming approximately 300,000 tons annually, and Sichuan Pushi, holding a 67% stake by Yibin Paper, has a leading position in the production of diacetate and triacetate [2] - The prices of CAB (cellulose acetate butyrate) and CAP (cellulose acetate propionate) have significantly increased, with imported CAB prices ranging from 188,000 to 200,000 yuan/ton, while domestic prices are between 90,000 and 115,000 yuan/ton, a notable rise from 58,000 yuan/ton in March 2025 [2][24] - Domestic production capabilities for CAB and CAP have been historically monopolized by foreign companies, but local firms like Wuxi Chemical Research Institute and Fujian Hongyan Chemical are developing their production capabilities [3] 2. High-Level Special Bond Issuance and Focus on Infrastructure Work - In April 2025, new local special bonds totaled 230.144 billion yuan, with a cumulative issuance of 1.1904 trillion yuan from January to April, marking a year-on-year increase of 467.9 billion yuan [4][29] - The cement shipment rate was reported at 48.07%, with a slight decrease, while the asphalt plant operating rate was 28.8%, indicating a gradual recovery in construction activity [4][29] 3. Market Review - The construction index rose by 2.23% during the week of May 5-9, outperforming the CSI 300 index, with notable gains in construction decoration and design sectors [5][36] - Key stocks that performed well included Shanshui Bide (+28.1%), ST Saiwei (+21.7%), and ST Chuangxing (+21.5%) [5][36] 4. Investment Recommendations - The report suggests focusing on traditional construction blue-chip stocks, particularly in infrastructure sectors like water conservancy, railways, and aviation, with a recommendation for companies like Sichuan Road and Bridge, Zhejiang Jiaoke, and Anhui Construction [41] - It also highlights opportunities in cyclical engineering stocks, particularly in coal chemical projects, recommending companies like Sanwei Chemical and China Chemical for their strong technical capabilities [42]