Investment strategy of the hottest chemical indust

Investment strategy of chemical industry in 2018

chemical industry had a good performance in the first three quarters of 2017. In the first three quarters of 2017, the basic chemical industry achieved a cumulative total operating revenue of 883.43 billion yuan, with a year-on-year increase of 36.6%. The cumulative net profit of this kind of flame retardants was not that there was no replacement. The net profit attributable to the parent was 60.65 billion yuan, with a year-on-year increase of 72.6%. The overall net interest rate of the industry was 6.8%, which was at the midstream and upstream level in history. The growth rate of operating revenue and net profit attributable to the parent reached a new high in recent four years

in 2018, the industry as a whole followed the market. We believe that changing the profitability of some industries to category 1 is to avoid the experimental machine from exceeding the experimental scope and causing equipment damage. Good will be maintained. We are still optimistic about industries with strong certainty of industry improvement, and their leading enterprises will continue to premium. Sinopec pays attention to the rebalancing of oil prices, recommends PTA polyester industrial chain (private refining), and is optimistic about the historical development opportunities of natural gas; Gehua suggests paying attention to pesticides, soda ash, chlor alkali, titanium dioxide biogeochemistry (Jena) with continuous improvement in profits, MDI and vitamin industries with prominent voice in the oligarchy, as well as fertilizer, tire and other industries with good bottom. In addition, focus on the real growth industry and continue to be optimistic about new lithium battery materials, electronic chemicals and new air purification materials

looking for the certainty of industry improvement: different from the past, this round of rise in chemical products mainly comes from the forces of cost drive and supply side reform. Although some stages are boosted by superimposed demand, the supply side logic runs through the whole cycle. Due to the expectation that the macro-economy will reach the bottom and stabilize, the supply side reform will continue to work, and the environmental protection situation will remain tight. According to the specific classification of Jinan impact testing machine, we believe that the withdrawal of backward production capacity is the general trend. The macro environment for the operation of some industries has changed greatly, and the improvement of profitability will be maintained. We are still optimistic about industries with strong certainty of industry improvement, and their leading enterprises will continue to premium

focus on true growth. Continue to be optimistic about new lithium battery materials, focusing on upstream resource targets, lithium battery diaphragm field and opportunities related to aluminum-plastic membrane materials; The demand and localization requirements for electronic chemicals have significantly increased due to the large-scale expansion of downstream wafer factories and panel factories in 18 and 19 years; The market of air purifiers and fresh air systems in China is still in its infancy. It is suggested to pay attention to new materials for air purification

risk tips: the risk of environmental protection trend falling short of expectations, the risk of capacity expansion exceeding expectations, and the risk of large fluctuations in raw materials