Shoes And Chemicals Are Well Received.

Chemical industry surpassed A shares, but the first quarter profits of the chemical industry increased significantly.

The price rise of chemical products in the first quarter is still cost driven, and the trend of products in the industry is quite different. The prices of products in the upper and middle reaches increase rapidly.

The main increase was mainly organic chemical raw materials and intermediates driven by oil prices, such as toluene, aniline, phenol, synthetic materials, rubber, synthetic chemical fiber, and so on. Secondly, there were also downstream products of chlorine downstream caused by the imbalance of chlor alkali, such as chloroform, propylene oxide and fluorinated alkanes, all up by about 50%.

The price level of refined products in the downstream of chemical industry is relatively slow.

The fine development area is facing cost pressure in the first quarter, and it is expected to get rid of this dilemma in the two quarter.

In the field of meticulous development, business revenue has increased by 58%, while net profit growth is only about 30%, and growth is lower than market expectations.

We believe that the main reason is that the fine development sector is in the downstream of the industrial chain, and price adjustment is lagging behind, resulting in a low level of gross profit in the first quarter.

In the two quarter, under the strong pull of consumer demand, the enterprises in the fine development sector have basically raised the price of products, such as the 25% increase in the stock market.

The price of raw materials and intermediates has been downtrend recently. At present, prices of aniline, MDI, propylene oxide, chloroform, PP and other products have already had a certain callback, so gross profit and net profit in the two quarter will rise sharply.

The upgrading and adjustment of chemical industry is still being refined.

Serious oversupply of bulk products and serious shortage of meticulous development. The two will follow different development logic, and the government led industrial restructuring will focus on the development of fine development.

From the economic position of the chemical industry, we look for three major themes in the development direction of production industry: resources, environmental protection and consumption upgrading.

Resource is king: a substantial increase in resource tax has forced the chemical industry to go along the path of meticulous development. Environmental protection is the main concern: CDM projects, pesticide environmental protection production, waterborne pesticide preparations, water-based inks, waste gas and wastewater treatment agents and powder coatings; consumption upgrading: attention to rigid foam polyether insulation materials instead of PS foam, engineering plastics instead of metals, high stability fluorosilicone new materials to replace traditional materials that are easy to deteriorate and deteriorate, color carbon powder changes to pure black laser printing, and microfiber PU synthetic leather instead of genuine leather.

Investment strategy.

First of all, we are optimistic about the future rise of the chemical sector, especially in the field of fine development.

The adjustment of economic structure highlights investment opportunities in the field of fine development in China.

The oil price adjustment will lead to a sharp reduction in the cost of products in the field of refinement, and the rapid growth of performance will continue.

Looking for relevant investment targets with the theme of resource conservation, cleaner production and consumption upgrading.

It is highly recommended that fluorine materials lead the giant shares, super fiber PU synthetic leather leader, wo Xin shares, rigid foam polyether insulation material leader Hong Baoli, and the future glyphosate preparation export leading enterprise Huaxing Chemical.