Chemical Industry Weekly Report for the Second Week in February 2022: Steady Growth Policy Gradually Strengthening the Chemical Sector is Expected_Oriental Fortune Network

This week’s sector performance: This week (February 14-February 18, the same below) the market composite index rebounded and rose. The Shanghai Composite Index closed at 3,490.76, up 0.80% this week.Shenzhen Component IndexUp 1.78% this week, the chemical sector (Shenwan) rose 3.16%. This week’s performance of chemical stocks: The chemical sector rose broadly this week, and the increase was stronger than the market.The top gainers wereMasamoto Chemistry、Qingshuiyuan*ST Chengxing,New materials of the times、Yuntianhua、Zhenhua Co., Ltd.、Shilong Industrial、Sanfu Xinke、German Nano、Rongbai TechnologyWait. February 11PfizerThe company’s new crown oral drug received emergency domestic approval, this weekMasamoto ChemistryA cumulative increase of 66.73%,Masamoto ChemistryLeading the chemical sector, the company has a production capacity of 500 tons/year of caron anhydride intermediates.this weekYuntianhuaannouncementSign the “Cooperation Framework Agreement”, set up a cooperative company and buildBatteryisolation film andBatteryPositive and negative materials and other supporting projects. February 14th,German NanoA prospectus for directional issuance was issued, and the funds raised will be used for the production base project of a new type of phosphate-based cathode material with an annual output of 110,000 tons.

Crude oil market news this week: EIA crude oil inventories increased, US-Iran negotiations are in the final stage, international crude oiloil priceGrid fell. ICE Brent oil closed at $93.54/barrel (-0.95% month-on-month); WTI crude oil closed at $91.07/barrel (-2.18% month-on-month). Tracking of key chemicals: Among the chemicals we are concerned about this week, the prices of natural gas (+19.69%), ethylene oxide (+13.89%), industrial grade lithium carbonate (+13.32%),BatteryGrade lithium carbonate (+12.66%), butadiene (+12.16%). Import prices continued to rise under the improvement of natural gas terminal demand. The cost of ethylene oxide has increased, the market supply has decreased, and downstream demand has increased, and prices have continued to rise. The lithium carbonate market has less supply, and the price has risen due to the outbreak of downstream demand. The spot supply of butadiene in the field was tight, but the recovery of downstream construction was slow, and the market price rose and fell.

The main line of chemical investment: (1) The cyclical growth stocks are expected to improve marginally: Since the inflection point of the chemical boom in Q2 2020, the prices of some chemical products have risen to historical highs. As the mismatch between supply and demand moves toward a balance and the downward pressure on the economy is superimposed, traditional chemical cyclical stocks have pulled back sharply. We believe that we should focus on industry leaders that have the ability to continuously expand production during the 14th Five-Year Plan, and use volume to supplement prices, especially to embrace changes and find high-quality companies that are on the second growth curve. In the medium and long term, it is expected to cross the cycle. Highly recommented:Wanhua Chemical、Hualu Hengsheng、satellite chemistry、China Chemical、Baofeng Energy, lithium iron phosphate industry chain, soda ash industry chain. (2) Focus on high-end manufacturing, supporting materials for high-tech industries, including biosynthesis, electronic materials, degradable, exhaust gas treatment, carbon fiber, etc. Highly recommented:Haohua Technology、Wanrun shares. (3) For the pesticide industry chain that has entered the boom cycle, it is recommended to focus on:Yangnong Chemical、Guangxin Co., Ltd.。

Risk warning: The crude oil supply fluctuates greatly; the trade war situation deteriorates; the risk of the exchange rate fluctuates greatly.

(Article Source:Soochow Securities）

Article source: Soochow Securities

Responsible editor: 91

Original title: Chemical Industry Weekly Report for the Second Week in February 2022: Steady Growth Policy Gradually Strengthening Chemical Industry is Expected