Investment Rating - The report maintains a "Buy" recommendation for the petrochemical sector, particularly focusing on private large-scale refining companies [3][15]. Core Insights - The report highlights a transformative period in refining, suggesting a focus on private large-scale refining companies due to structural adjustments in the industry [15]. - The "anti-involution" trend is seen as a potential turning point for the chemical industry, with expectations of improved profitability and competitive dynamics in the coming quarters [16][17]. - The report emphasizes the importance of PPI turning positive, which could lead to increased market allocation towards cyclical midstream sectors, benefiting the chemical industry [17]. Industry Overview - The basic chemical industry comprises 493 listed companies with a total market capitalization of 51,121.17 billion and a circulating market value of 45,298.84 billion [3]. - The industry index for the chemical sector is reported at 71.55, reflecting a slight decrease of 0.06% week-on-week and a year-on-year decline of 22.79% [14]. - The report notes that the current operating rate in the chemical industry is around 66.53%, indicating a stable production environment [14]. Price Trends - Key price movements include an 8.0% increase in lithium carbonate and a 7.7% increase in acrylic short fibers, driven by strong demand and supply constraints [6][15]. - The report indicates that the export prices for diammonium phosphate and monoammonium phosphate have risen significantly, with year-to-date increases of 24.4% and 18.1%, respectively [18]. Recommendations - The report suggests focusing on companies with low valuations and potential for upward movement, including leading chemical firms like Wanhua Chemical and Hualu Hengsheng, as well as companies benefiting from export quotas [17][18]. - Specific companies to watch include Hengli Petrochemical, Rongsheng Petrochemical, and Yihua Chemical, which are positioned to benefit from the ongoing structural changes in the industry [15][18].

Investment Rating - The report provides a positive outlook for the tire industry, highlighting robust demand and strategic expansions by key players like Sailun [3][4]. Core Insights - The tire industry is experiencing a decline in raw material prices, which is beneficial for manufacturers [3][6]. - Sailun Group has successfully launched its first high-performance tires in Indonesia and Mexico, marking significant milestones in its global expansion strategy [3][4]. - Sailun has entered the top ten of the global tire brand value rankings, reaffirming its position as the most valuable tire brand in China with a 13% increase in brand value [3][4]. - The tire raw material price index has decreased significantly, with a 2.95% month-on-month decline and an 8.28% year-on-year decline [6][7]. Summary by Sections Raw Materials - The raw material price index for tires in May was 156.89, reflecting a 2.95% decrease month-on-month and an 8.28% decrease year-on-year [6][7]. - Specific prices include natural rubber at 14,955 CNY/ton (down 2.52% month-on-month, up 5.48% year-on-year), styrene-butadiene rubber at 12,459 CNY/ton (down 0.22% month-on-month, down 7.79% year-on-year), and carbon black at 6,815 CNY/ton (down 7.46% month-on-month, down 21.72% year-on-year) [6][7]. Production and Export - In May, the average operating rate for full steel tires in China was 58.80%, a decrease of 6.34 percentage points month-on-month, while for semi-steel tires, it was 72.53%, down 6.68 percentage points month-on-month [25]. - In April, China's rubber tire production was 102 million units, a 5.07% decrease month-on-month but a 14.03% increase year-on-year [27]. Consumption - The replacement market shows resilience, with stable demand in the U.S. and a 1.95% month-on-month increase in imported semi-steel tires [3][41]. - In April, U.S. automotive parts and tire store retail sales were $11.529 billion, reflecting a 1.20% decrease month-on-month but a 0.60% increase year-on-year [68]. Shipping Costs - In May, shipping costs remained stable at a low level, indicating a potential for cost management in the tire supply chain [4]. Key Companies - Sailun Tire is highlighted as a key player in the industry, with significant achievements in production and brand value [3][4].

Investment Rating - The report does not explicitly state an investment rating for the chemical industry Core Insights - In May 2025, the basic chemical index increased by 2.12%, ranking 19th among primary industries, with 22 out of 32 sub-industries showing growth [11][22] - The top-performing products in May included hydrochloric acid (43.38%), nitrogen (19.95%), and TDI (17.10%), while the worst performers included TMA (-36.36%) and dichloropropane (-22.38%) [26][34] - The report highlights the successful launch of the first high-performance tires from Sailun's factories in Indonesia and Mexico, marking significant steps in the company's global expansion strategy [4] Market Overview - Major indices in May 2025 showed positive growth: Shanghai Composite Index increased by 2.09%, Shenzhen Component Index by 1.42%, and the ChiNext Index by 2.32% [11] - The basic chemical sector's performance was driven by sub-industries such as chemical fibers (7.98%) and agricultural chemicals (3.89%), while chemical raw materials saw a slight decline of -0.11% [16][21] Product Price Movements - The report identifies significant price increases for hydrochloric acid, nitrogen, and TDI, with hydrochloric acid prices rising due to reduced supply in Hunan and Fujian provinces [28][29] - Conversely, products like TMA and dichloropropane experienced substantial price declines, attributed to weak demand and oversupply conditions [34][35] Company Performance - Among basic chemical companies, 379 reported positive returns while 159 faced losses in May 2025 [22] - The top gainers included Suzhou Longjie (84.09%) and Guangkang Biochemical (68.13%), while the largest losers included Boyuan Co. (-22.97%) and Kobal (-29.07%) [23][25]

Investment Rating - The report does not explicitly provide an investment rating for the chemical industry Core Views - In May 2025, the basic chemical index increased by 2.12%, ranking 19th among primary industries, with 22 out of 32 sub-industries showing growth [2][11] - The report highlights significant price increases in hydrochloric acid (43.38%), nitrogen (19.95%), and TDI (17.10%) among other chemicals [3][26] - The report notes the successful launch of production lines in SAILUN's factories in Indonesia and Mexico, marking a significant step in the company's global strategy [4] Summary by Sections Market Overview - In May 2025, major market indices showed positive growth: Shanghai Composite Index increased by 2.09%, Shenzhen Component Index by 1.42%, and the ChiNext Index by 2.32% [11] - The basic chemical index's performance was relatively strong, with 379 companies reporting positive returns and 159 companies reporting negative returns [22] Price Movements - The top ten chemicals with the highest price increases in May 2025 included hydrochloric acid (43.38%), nitrogen (19.95%), and TDI (17.10%) [3][26] - Conversely, the chemicals with the largest price declines included TMA (-36.36%) and dichloropropane (-22.38%) [34] Sub-Industry Performance - Among the secondary sub-industries, chemical fibers led with a growth of 7.98%, followed by agricultural chemicals at 3.89% [16] - The top five performing tertiary sub-industries included polyester (19.53%) and pesticides (10.97%) [18][21] Company Performance - The report lists the top ten basic chemical companies by monthly growth, with Suzhou Longjie leading at 84.09% [23] - The bottom ten companies included Boyuan Co., which saw a decline of -22.97% [25] Industry Insights - The report discusses the stable demand for hydrochloric acid, with supply issues noted in Hunan and Fujian provinces [28] - It also highlights the impact of environmental inspections on bromine production, leading to reduced supply and increased prices [29]