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Recently, with the recovery of cyclical stocks, the chemical industry, which has been silent for a long time, has also seen a steady rise in the market. As of the close of November 13, the chemical industry index has risen 8.25% since November, far outpacing the Shanghai Stock Exchange Index over the same period (monthly increase of 2.65%). Especially on the 13th, the chemical industry index was volatile and climbed, and once hit a five-year high during the intraday session. In terms of individual stocks (excluding new stocks listed in the past month), the share prices of 9 chemical stocks including Hengyi Petrochemical, China Jushi, Yangnong Chemical, Jinlitai, Lomon Baili, Satellite Petrochemical, Tianci Materials, Enjie, and Defang Nano It is a record high.
In the context of the domestic economic recovery, terminal demand for real estate, automobiles, and consumer goods has improved significantly from the previous month. Recently, the prices of products such as MDI (one of the main raw materials of polyurethane), rubber, PVC (polyvinyl chloride), chemical fiber, and silicone have all increased significantly. Industry insiders generally believe that price increases have brought a bright moment to the chemical industry, and the procyclical logic is at the right time. It is recommended to configure the chemical sector.
"Recently, the concept of price increases has been very strong, and so has the logic of the chemical industry. For example, for silicone concept stocks and polyester filament stocks that belong to the chemical industry, the logic of product price increases has driven stock prices to rise. Affected by the external epidemic, domestic Orders have risen sharply, causing the price of the chemical sector to rise accordingly." He Jinlong, chairman of Umili Investment, who was interviewed by the reporter, said, "However, in the future, there will be a trend of sector differentiation in the chemical industry. Investors should pay attention to and choose leading companies with performance support. "
In fact, the leading stocks in the chemical industry have gained market attention and sought after. The reporter found after statistics on flush data that since November, 236 chemical stocks have outperformed the Shanghai Composite Index over the same period, accounting for more than 60%. Among them, Runhe Materials, Oriental Shenghong, Defang Nano and other three stocks have accumulated more than 40% increase in the month, and their performance is eye-catching.
The outstanding performance of the stock price is undoubtedly supported by good performance. The third quarterly report for 2020 shows that 187 listed chemical companies have achieved year-on-year growth in net profit in the third quarter, of which 51 companies have achieved a year-on-year growth rate of over 100%.
In this regard, Long Hao, the chairman of an asset, said in an interview with reporters that in the first three quarters of 2020, the operations of related enterprises in the chemical industry have returned to the right track, and the overall prosperity of the basic chemical industry has continued to improve; the overall performance of the industry sector has improved, and the operation Revenue and profitability dropped sharply at the beginning of the year. At this stage, there has been an inflection point and a steady upward trend. The market outlook can focus on three areas: one is the policy-supported new material sector with domestic substitution demand; the second is the high-quality chemical industry leader with the advantages of industrial chain integration in the park; the third is the "cold winter" concept with full orders and outstanding performance Eye of the polyester plate and so on.
A certain fund manager Xia Fengguang told reporters that the chemical industry has generally entered an upward cycle and demand continues to improve. At the same time, chemical product prices are generally at a relatively low level, and there is a strong incentive to replenish inventory. As procyclical products in the market have received continuous attention from funds in the near future, the chemical industry is an industry sector with relatively large breadth and depth in the market. Some of the leading stocks of high-quality white horses have entered a continuous upward trend. If the chemical industry’s boom cycle continues, it will still There are some potential stocks worthy of attention and exploration. Xia Guangguang suggested that the focus can be on companies that are in a period of capacity expansion or have a higher market share in market segments.
It is worth noting that some chemical stocks are also favored by foreign investors. Since November, 99 chemical stocks have appeared on the top ten lists of Shanghai Stock Connect and Shenzhen Stock Connect, accounting for nearly 30%. Among them, 61 chemical stocks, including Sinopec, Enjie, National Ceramic Materials, Proya, Junzheng Group, Kingfa Technology, Wanhua Chemical, Luxi Chemical, etc., were net purchased by Beijing Capital during the period and became foreign investors. The object of the warehouse.
Regarding investment opportunities in the chemical industry, Pacific Securities stated in its latest research report that based on the three high attributes of the chemical industry (environmental barriers, park barriers, and capital and technology intensive), leading companies have obvious comprehensive advantages, and they continue to expand production and industry concentration. In the context of improvement, the logic of the strong Hengqiang continues, and it is recommended to focus on the leaders of the segmented industries. Three main lines of investment, including domestic demand and rigid demand, pro-cyclical growth, technological internal circulation, and new materials, are recommended. Different main lines may have periodic performance due to changes in market styles and valuations.
