Investment Rating - The report maintains an "Outperform" rating for the basic chemical industry [2] Core Viewpoints - The supply-demand relationship is expected to improve, with a recovery in the market for photoinitiators. China is the main producer of photoinitiators, and the industry is becoming increasingly concentrated among leading companies. The demand for photoinitiators is anticipated to rise due to the expansion of UV curing applications [5][29] - The price of sustainable aviation fuel (SAF) has been rising, indicating a potential phase of simultaneous volume and price increases. The recent increase in SAF prices is attributed to China's announcement of an export whitelist and quotas, leading to increased inquiries from European buyers [30][31] Summary by Sections 1. Core Viewpoints - The report highlights the expected improvement in the supply-demand dynamics for photoinitiators, with China being a key player in production and export [5][29] - The report suggests that the price of photoinitiators, which has been at historical lows, is likely to recover due to expanding applications in high-end sectors [5][29] - SAF prices have increased significantly, with European prices reaching 2230 USD/ton, reflecting a 9.85% weekly increase and a 25.14% monthly increase [30][31] 2. Overall Performance of the Chemical Sector - The basic chemical industry index increased by 3.1% during the week, outperforming the Shanghai Composite Index by 1.2% [16] - Year-to-date, the basic chemical industry index has risen by 6.4%, outperforming both the Shanghai Composite Index and the ChiNext Index [16] 3. Individual Stock Performance in the Chemical Sector - Among 424 stocks in the basic chemical sector, 372 stocks rose, with the top performers including Dadongnan (+50%) and Taihe Technology (+48.1%) [25][27] - The report notes significant declines in stocks such as Ningxin New Materials (-18.6%) and Jinniu Chemical (-14.4%) [25][27] 4. Key News and Company Announcements - The report emphasizes the recovery potential for photoinitiators and the rising SAF prices as significant developments in the industry [29][30]

Market Performance - The stock indices in the two markets rose significantly, with the Shanghai Composite Index increasing by 0.65% to 3381.58 points, and the Shenzhen Component Index rising by 0.43% to 10048.39 points, while the North Star 50 Index surged by 1.54% [1] - The total trading volume in the Shanghai, Shenzhen, and North markets reached 1.1471 trillion yuan, an increase of approximately 55 billion yuan compared to the previous day [1] Industry Insights - The oil sector showed strong performance, with logistics, chemicals, semiconductors, non-ferrous metals, coal, pharmaceuticals, and brokerage sectors also rising [1] - The A-share market is expected to maintain a stable upward trend due to the expansion of equity public funds, the influx of medium to long-term capital, and supportive policy tools [1] AI Glasses Market - Meta has launched a new series of AR glasses in collaboration with Oakley, priced at $399 for the standard version and $499 for the limited edition, with pre-orders starting on July 11 [2] - The new AI glasses feature improved battery life and are designed for sports scenarios, which may enhance market acceptance and attention [2] Optical Lens Industry - The rise of smart glasses is creating new variables for the optical lens industry, with manufacturers collaborating directly with lens suppliers to address optical prescription issues [3] - Companies with strong manufacturing and R&D capabilities in the lens sector are expected to benefit from this trend [3] SAF Price Trends - The price of SAF (Sustainable Aviation Fuel) in Europe has risen to $2230 per ton, a 10% increase from the previous week and a 27% increase from the previous month [4] - The price of SAF in China has reached $1800 per ton, reflecting a 3% weekly increase and a 6% monthly increase [4] Military Industry Outlook - Global military spending is projected to reach approximately $2.7 trillion in 2024, a 9.4% increase year-on-year, driven by geopolitical tensions [5] - The demand for military materials such as titanium alloys and tungsten is expected to grow significantly, benefiting upstream companies in the military metal sector [5] Automotive Industry Concerns - The National Federation of Automobile Dealers has called for car manufacturers to optimize rebate policies and shorten the rebate payment period due to significant operational pressures faced by dealers [7] - Despite achieving sales targets, dealers are still struggling with losses in new car business [7] Gold Industry Development - A new implementation plan for the high-quality development of the gold industry has been issued, aiming for a 5-10% increase in gold resource capacity and a 5% increase in gold and silver production by 2027 [8] Energy Market Developments - The National Energy Administration is pushing for the establishment of a nationwide unified electricity market by 2025, focusing on provincial electricity spot market coverage [9] - Solar power generation capacity has seen a significant year-on-year increase of 56.9% in the first five months of 2023, reaching 108 million kilowatts [10] Robotaxi Commercialization - Tesla has initiated a Robotaxi pilot service in Austin, Texas, with the first ten Model Y vehicles, marking a significant step in the commercialization of autonomous taxi services [11]