Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights a positive outlook for the basic chemical industry, driven by supply optimization and recovery in profitability [3][4] - The demand for Sustainable Aviation Fuel (SAF) is expected to grow steadily due to continuous support from multiple countries [4] - The price of Used Cooking Oil (UCO) is anticipated to rise further due to increasing demand and carbon tax prices [5] - The European Union has confirmed that there is no evidence of fraud in the import of biodiesel from China, which may boost demand [6] Summary by Sections Industry Trends - The basic chemical industry is projected to outperform the overall market, with a positive investment rating [1] - The industry has shown a significant price increase for SAF, with EU and China prices rising by 10% and 3% respectively since the beginning of 2025 [4][10] Demand Drivers - The demand for UCO is increasing, driven by the growth in SAF and Hydrotreated Vegetable Oil (HVO) requirements [5] - The HVO demand in Germany is expected to increase by 1.5 million tons by 2026, nearly quadrupling the 2025 levels [5] Beneficiary Companies - Companies such as Shandong Hi-Speed Energy and Jiaao Environmental Protection are positioned to benefit from the growing SAF market and UCO production [7] - Shandong Hi-Speed Energy plans to increase its waste processing capacity, which will double its UCO output [7] - Jiaao Environmental Protection is set to gain market share in the domestic SAF sector with new capital investments [7]