Hong Kong stock concept tracking | Chemical sector begins mild recovery. Institutions are optimistic about the valuation repair of central state-owned enterprises (with concept stocks attached)

On November 15th, the China Securities Regulatory Commission officially issued "Listed Company Supervision Guideline No. 10 - Market Value Management", making specific requirements for main index constituent companies to establish market value management systems, disclose valuation enhancement plans for companies with long-term underperformance, etc. CITIC Securities research report stated that the counter-cyclical adjustment and support policies for the stock market continue to strengthen, and it firmly believes in the investment opportunities in the chemical industry sector. Recommendations include: 1) Targets benefiting from central enterprise reform and market value management; 2) Varieties with cost advantages in capacity expansion; 3) High-quality growth companies with industry marginal changes; 4) Technological innovation direction. Guotai Junan research report stated that looking ahead to the fourth quarter of 2024 and the next two years, in the short term, although the "golden September and silver October" peak season for the basic chemical industry sector in 2024 may not be strong, industries with rigid supply still show strong profitability resilience, such as MDI, titanium concentrates, phosphate rock, trichlorisopropanol, and other varieties. In the medium to long term, the basic chemical industry sector may gradually emerge from the bottom of the cycle by 2025 and begin a moderate recovery. Guotai Junan recommends leading blue-chip companies with cost advantages and high-quality enterprises with growth trends. Companies in the segmented chemical industry chain include SINOPEC CORP(00386), SINOPEC SEG(02386), SHANGHAI PECHEM(00338), L & M CHEMICAL(00746), YIP'S CHEMICAL(00408), CHINA SANJIANG(02198), TSAKER NE(01986), CHINA RISUN GP(01907), TIANDE CHEMICAL(00609), etc.