[Hua'an Chemicals] Chemical Sector Views Update and Key Recommendations

English summary

The overall chemical sector has stabilized and recovered. The Strait conflict is showing a tug-of-war trend. The oil price center has gradually stabilized, market disturbances have weakened, and interim report catalysts are dense. Short-term performance in chemicals has strong certainty, mid-term restocking trends are clear, and long-term structure improvement and dual-carbon policies are favorable. Short-term catalysts: 1. Golden September and Silver October restocking; 2. Product price increases; 3. Some capacity exits. We highlight three key directions: 1. Oversold chemical leaders. Previously affected by oil prices, demand was generally under pressure in Q2, but valuations and share prices are at historically low levels, with room for recovery. Focus on [Wanhua Chemical], [Rongsheng Petrochemical], [Hualu Hengsheng], [Lomon Billions], [Huafon Chemical], etc. 2. Interim results line. Q2 inventory gains are expected to surge, and Q3 still has restocking expectations. Focus on polyester filament, light hydrocarbons, coal chemical, methionine, etc. Watch [Xinfengming], [Tongkun Group], [Satellite Chemical], [Baofeng Energy], [NHU], etc. 3. ...