Minsheng Securities' 2025 Annual Investment Strategy for the Chemical Industry: High Demand Growth in Multiple Sectors, Focus on "New" Demand.

Guangfa Securities released a research report stating that looking ahead to 2025, the chemical industry will see high demand growth in multiple sectors. Among them, Xinjiang coal chemical industry is ushering in new development opportunities, leading to new demand for equipment investment; the importance of food security is constantly increasing, with rigid demand for fertilizers and pesticides; the overall operating rate of the chemical industry is still not high, and high-boom industries such as phosphate ore are still scarce resources. As downstream demand for key new materials for domestic substitution continues to rise, high-quality platform-type new material companies will see rapid development opportunities, and it is recommended to focus on leading companies in new quality production and materials. The report also suggests paying attention to the global biodiesel market and the new demand brought by bio-marine fuel and bio-aviation coal. The main viewpoints of Guangfa Securities are as follows: Xinjiang coal chemical industry leads to new demand for equipment investment As China's dependence on foreign oil and gas increases and coal production in coal-producing provinces in the East gradually declines, the importance of Xinjiang in China's energy supply system continues to rise, presenting new opportunities for the coal chemical industry in Xinjiang. According to incomplete statistics, the planned investment in new Xinjiang coal chemical projects has exceeded 600 billion yuan. It is recommended to pay attention to companies such as China National Chemical Engineering (601117.SH), East China Engineering Science and Technology (002140.SZ), and Shandong Sunway Chemical Group (002469.SZ). Food security is increasingly important, with rigid demand for fertilizers and pesticides Ensuring food security and stable production in the agricultural sector is one of the core themes of recent central government documents. In the pesticide sector, it is recommended to focus on companies such as Sichuan Guoguang Agrochemical (002749.SZ) and ShanDong Cynda Chemical (603086.SH) that can increase production and efficiency. In the fertilizer sector, it is recommended to focus on leading companies in the compound fertilizer industry such as YONFER Agricultural Technology (000902.SZ) and Stanley Agriculture Group (002588.SZ). Leading new material companies with new production capacity are worth focusing on As downstream demand for key new materials for domestic substitution continues to rise, high-quality platform-type new material companies will see rapid development opportunities. Companies with technological strength and industry support will have multiple opportunities for growth. It is recommended to pay attention to leading companies in high-end resins such as Jinan Shengquan Group Share Holding (605589.SH), inorganic materials such as Shandong Sinocera Functional Material (300285.SZ), adsorption and separation such as Sunresin New Materials (300487.SZ), and synthetic biology such as Anhui Huaheng Biotechnology Co., Ltd. (688639.SH). Industries with high prosperity are still scarce resources The overall operating rate of the chemical industry is still not high, and sectors with relatively limited supply constraints are still worth paying attention to. Phosphate ore production is mainly concentrated in 2026, with balanced supply and demand expected in the industry in 2025. Quotas for second-generation refrigerants in 2025 will be further reduced, while quotas for third-generation refrigerants will slightly increase, keeping the industry in an orderly supply and demand situation. Carbon reduction promotes new demand for biodiesel Focusing on the global biodiesel market brought by bio-marine fuel and bio-aviation coal, combined with the cancellation of value-added tax refunds for raw material exports, biodiesel companies are expected to see demand growth and increased raw material supply. It is recommended to pay attention to listed companies in China with large biodiesel production capacity: Longyan Zhuoyue New Energy (688196.SH), Zhejiang Jiaao Enprotech Stock (603822.SH), Beijing Haixin Energy Technology (300072.SZ), Shenzhen Lions King Hi-Tech (301305.SZ). Risk factors: Risks related to policy strength, implementation falling short of expectations, continuous rise in raw material prices, downstream consumer demand falling short of expectations, calculation errors, etc.