Galaxy Securities: Wait patiently for the cycle to bottom out and seize the structural opportunities in the chemical industry.

Galaxy Securities Research Report stated that, without a significant interruption in crude oil supply, it is expected that the price range of Brent crude oil in the second half of 2025 will be between $60 and $70 per barrel. The pressure on industry costs is expected to moderate, but the recovery of the industry's prosperity is closely related to supply and demand. On the supply side, on the one hand, the growth rate of capital expenditure in the chemical industry has slowed since 2024, and construction and existing production capacity still need time to digest; on the other hand, low prosperity is expected to accelerate the elimination of outdated production capacity and enhance the industry's self-discipline momentum. On the demand side, international trade frictions continue to recur, and chemical exports are expected to face certain challenges; with continuous efforts on the policy side, focusing on the release of domestic demand potential, it is hoped that the chemical industry's prosperity cycle will bottom out. Galaxy Securities believes that in the second half of 2025, attention should be focused on boosting domestic demand, supply side constraints, and promoting the substitution of domestically produced new materials, grasping the structural investment opportunities in the chemical industry.