Chemical Industry Stocks — Sanmei Co., Ltd. and Qixiang Tengda

Men fear entering the wrong profession; women fear marrying the wrong man. Yet even within the chemical industry, companies operating in different niche segments can differ as drastically as dogs do from one another. (1) Sanmei Co., Ltd. A leading private enterprise—ranked second or third in the fluorine-chemical refrigerant sector. Benefiting from the nationwide quota system for refrigerant production, refrigerant prices have risen steadily. Although sales volume declined in the first half of this year, the company continues to generate profits effortlessly. For this stock, buy on dips. Its profitability is well secured for the foreseeable next few years. The production quota system serves as its moat. Key watchpoint: price movements of HFC refrigerants. (2) Qixiang Tengda The undisputed leader in deep processing of C3/C4 hydrocarbons. Unfortunately, this sector is extremely competitive: the company generated RMB 15.6 billion in revenue but only RMB 100 million in profit—even after turning from loss to profit. The company has exerted tremendous effort, yet still struggles at the margin of profitability. Moreover, with massive new domestic capacity expected to come online soon, whether it can escape this cutthroat competition remains uncertain.

Chemicals Sector: Earnings Recovery Is Obvious, Valuations Are at a Low—Strongly Bullish (Stock Recommendations Included)

Viewpoint: Not buying chemicals stocks in September is like not buying memory stocks in April! This sector offers abundant opportunities: clear earnings recovery, valuations at historical lows, and an excellent shareholder structure. We strongly endorse the robust chemical-sector bull market expected in September! Top Chemical Sector Picks: Integrated refining & petrochemicals, chemical fibers, tires, potash fertilizer, and hafnium. [Private Integrated Refiners]: Approximately 7–8% of global refining capacity has been impaired due to geopolitical conflicts; some severely damaged refineries may require over one year to resume operations. Supply contraction is driving substantial profit expansion. Recommended stocks: Rongsheng Petrochemical, Hengli Petrochemical, Hengyi Petrochemical, Dongfang Shenghong, Huajin Chemical Industry. [Spandex]: Supply-side reform is intensifying; Huahai Spandex’s ~230,000-ton capacity is expected to shrink. According to Baichuan Information, as of August 28, 2026, the spread widened by approximately 40% compared to the beginning of the year. Recommended stocks: Xinxiang Chemical Fiber, Huafeng Chemical Fiber. [Polyester Filament Yarn]: According to Longzhong Consulting, as of late August, fabric manufacturers’ raw material and finished-goods inventory days declined year-on-year by 3.7 days and 9.5 days, respectively. Against this backdrop of low inventories, demand during the peak season could exceed expectations.

Four Chemical Stocks Poised to Outshine Q2 Earnings Estimates

Jul 27, 2026

DuPont, Chemours, Methanex, and Avient are projected to exceed Q2 earnings estimates due to market recovery and inventory normalization, overcoming raw material inflation challenges.

TradingView

2026-05-10

ESCO Technologies (NYSE:ESE) Releases Earnings Results, Beats Estimates By $0.01 EPS

2026-05-11

DuPont de Nemours Stock: Science-Driven Materials Leader

2026-05-17

DuPont de Nemours Inc Stock: Q1 Earnings Beat and Portfolio Reshaping Move Spotlight

2026-05-22

DuPont de Nemours Stock Beats Q1 Earnings Expectations Amid Water-Tech Push

2026-07-14

DuPont to Webcast Second-Quarter Results on Aug. 4