Obvious supply and demand gap, chemical products welcome the overall price hike, and related companies benefit (with stock)

The high prosperity of the domestic manufacturing industry has stimulated a rebound in the demand for basic chemical products.

Increase in export orders 

After the Spring Festival, the prices of some chemical products rose.

Xinjinlu is mainly engaged in the production and sales of PVC resin, caustic soda series chemical raw materials and their processed products.

It is understood that since late August last year, the shortage of PVC supply in overseas markets has been intensified, prices have risen, the PVC export arbitrage window has opened, and the number of export orders has increased significantly.

Since the third quarter of 2020, Xinjin Road's performance has improved significantly and continued to strengthen in the fourth quarter.

Since the fourth quarter of 2020, the price of viscose staple fiber has gradually increased.

Related companies benefit 

According to industry insiders, the strength of the chemical sector is caused by many factors.

　　Shenwan Plastics sub-industry performed well.
The plastic restriction order has boosted the demand for biodegradable plastics and papermaking, and at the same time stimulated the price of white cardboard to hit a record high.
The leader in biodegradable plastics, Jinfa Technology, has increased by nearly 70% this year.

　　The person in charge of Kingfa Science and Technology told reporters that before the plastic restriction order, the domestic demand for biodegradable plastics was very small.
Previously, 80% of the company's raw materials were sold abroad, and the domestic annual sales volume was only 10,000 tons.
In January of this year, the company's production of biodegradable plastic raw materials increased by 10 times year-on-year.

　　Kingfa Technology predicts that the net profit attributable to shareholders of listed companies will be between 4.
535 billion yuan and 4.
680 billion yuan in 2020, an increase of 3.
290 billion yuan to 3.
436 billion yuan compared with the same period last year, a year-on-year increase of 264% to 276%.
The company said that in 2020, the company's modified plastics business will have a reasonable global production capacity layout and steady profit growth; the market demand for new material products will increase significantly, and the company's production capacity will increase significantly.

　　After the Spring Festival, the prices of long fiber, short fiber and spandex in the upstream of textiles and garments began to rise.
The stock prices of companies such as Xinfengming, Sanyou Chemical and Huafeng Chemical have all risen sharply in recent days.

　　Xinfengming announced that since the fourth quarter of 2020, as downstream demand picks up, the company's product profitability has gradually recovered.
Coupled with the commissioning of new production capacity, the company's net profit attributable to shareholders of listed companies in the fourth quarter is expected to increase by 28.
55% to 56.
65% year-on-year.

　　Continued restoration of prosperity 

　　Many people in the industry believe that the chemical sector has long-term investment value.
Leading chemical companies rely on core R&D and cost competitiveness to achieve long-term deterministic growth through capacity expansion and industrial chain extension.

　　Wang Zhe, chief energy and chemical analyst at CITIC Securities, believes that as the global macro economy enters a recovery path, the demand for major chemicals will increase.
The cold wave in North America has interrupted the supply of chemical products in the region, and it is expected that the price increase of chemical products will continue until after mid-March.

　　Driven by the upward trend of oil prices and expectations of economic recovery, the chemical industry's prosperity will continue to recover.
Many institutions recommend that investors focus on leading stocks in the chemical sub-industry.
For example, Sanyou Chemical, the leader of viscose, Hengyi Petrochemical, the leader of large refining and chemical, and Aoke Co.
, Ltd.
in the field of new materials.

　　Shenwan Hongyuan’s latest research report pointed out that during the Spring Festival, due to the relief of overseas epidemics and the impact of cold current, crude oil prices rose sharply, overseas supply and demand gaps were obvious, and chemical products entered a stage of overall rise.
In the short term, the apparel industry chain and agrochemical sector are still in the stage of restocking.
The export of chemical products in the first half of the year is expected to exceed expectations.
(Reporter Liu Yang)

Transfer from: China Securities Journal

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