Cyclical products: grasp the industry leader and expand production and volume logic: from a fundamental point of view, profitability in the first quarter of 2018 continued to improve. With the high price support of crude oil, systematic adjustment of domestic demand, and the anticipation of seasonal overhaul of the supply side, the profit expectation of the chemical industry is expected to be revised, and the company has entered the safer undervalued region and has the investment value of the company with performance cashing ability. Remain concerned about the long-term impact of "looking back" on environmental protection and the short-term impact of the Qingdao summit. We continue to focus on the improvement of the supply and demand pattern, the boom and keeping in high varieties, the first choice of white horse company with the expansion of production and release logic. It is recommended to focus on the expansion of production capacity of the park (Shandong chemical, Hua Lu Hengsheng, Wanhua Chemistry), silicone DMC (Xin'an stock), pesticide (Yangtze agricultural chemical, Changqing stock, profit) Er chemical), caustic soda and PO (Binhai), polyester filament (Tong Kun), coal chemical industry (China Xin Lian Xin, Yang coal chemical industry), rubber auxiliary (Yang Guhuatai), etc.
New materials: look for the import substitution of the domestic production rate and improve the space, pay more attention to the key new materials, led by the electronic chemicals (semiconductor, plate display) for a long time. The Sino US trade situation puts forward higher demand for the progress of China's high and new technology manufacturing industry and the acceleration of the import generation, which requires the enhancement of talent quality and independent knowledge. The protection of property rights and the increase of industrial investment. For the field of chemical industry, the new material enterprises with independent research and development strength and the trend of industrial development are the target of key investment. We should choose the high quality new material enterprises which have shown earnings, low valuation and medium and long term growth. Electronic chemicals are the star direction in the field of new chemical materials. We should focus on flying materials, porcelain materials, Wan run shares, Jiangfeng electronics, Jiang Huawei and so on. The company has made 170 million breakthroughs in the plastic runway and the artificial lawn project, and the company has benefited directly from the material demand of the plastic runway and the supporting lawn. At the same time, it is suggested that long-term attention should be paid to lithium battery materials such as aluminum plastic film, new technology, electrolyte, Shi Da Sheng Hua, and carbon fiber (Guang Weifu material).
The value of the allocating plate is promoted. We think that the influence of supply, politics and US dollar on the oil price of 18 years is phased, and it maintains that the oil price is more stable in 18 years than in 17 years, and the reasonable range is WTI55-70, Brent60-75. In this oil price range, refinery and petrochemical sectors benefit significantly. In the past 18 years, the actual growth of domestic refining and chemical production capacity is very limited. The first priority is to increase the logic of the faucet, focusing on the polyester faucet (Tong Kun shares), refining and chemical (Rongsheng petrochemical, Hengyi petrochemical, Hengli shares, Sinopec), the C3C2 industry chain (satellite petrochemical).
Oil prices were refurbished by a drop in stock agreement and a high oil price: the US Energy Information Agency (EIA) Wednesday (May 9th) reported that by the week of May 4, 2018, the U.S. reduced 2 million 197 thousand barrels of crude oil stock by the end of May 4th as of May 4th. US President Trump confirmed the withdrawal of the agreement and restarted sanctions against Iran. The favorable factors of Iran's supply side have basically been cashed and oil prices continue to rise. Seasonal demand for oil products is coming in the peak season, and oil price rising trend is still strong.
Organosilicon market high level finishing, boom continued: in May, enterprises started high, and the market supply is still showing tension. In May, there was a maintenance plan for the Sanyou chemical industry. In June, the Shandong ssco summit was limited to Dongying and Zibo within 300 kilometers from Qingdao. In the light of the off-season, the Jiangxi star fire also saved and overhauled and expanded the production plan. The overall supply aspect was not increasing compared with the present. Overseas demand support remains unchanged. Recently, the export of Dow Corning products and other enterprises is obvious, domestic supply is insufficient, and China's export market is still considerable.
The Ministry of ecological environment started the "action 2018": to ensure the ecological environment safety of the Yangtze River, and the Ministry of ecological environment launched the "special action against the illegal activities of solid waste environment" in May 9th, that is, "action 2018". This special action began from May 9th to the end of June.