Chromium Salt Industry Consolidation Hopes To Accelerate &Nbsp; Industry Leader And Environmental Concept Benefit.

1, the benchmark will support A shares upward and turn to cyclical stocks, chemical sector rebound trend continues.

When the industry enters the consolidation stage after replenishment, the difference of demand trend will lead to structural differentiation of subsequent sub sectors.

Last week, Guoxin basic chemical index outperformed the market by 2 percentage points, and the petrochemical index lost 0.7 percentage points.

2, buying rigid, seasonal demand rising, and white horse stocks with resource attributes: Yantai Wanhua (600309), Saline Lake shares (000792), crown agricultural shares (600251), Xingfa group (600141), Yun Tian Hua (600096), run earth shares (002440), Jiu Lian development (002037), Zhejiang Longsheng (600352), and p shares (002010).

3, the "Iran issue" pushing up oil prices is expected to become a short-term hot spot.

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CICC: Recent

Recent chemical industry view: from the basic point of view, the major sub sectors of chemical industry have not seen substantial improvement.

At present, the price of chemical products is rising. We believe that more industry inventories will be cleaned up in the second half of 11. At the beginning of the new year, under the premise of high oil price, manufacturers will raise their quotations based on the cost and the attitude towards price. Many of the products we focus on, such as AA, although the price rises in the first half of the week, the actual turnover in the lower reaches is limited.

We believe that the entire chemical industry is in a passive replenishment stage, but demand has not actually improved.

This is different from the first half of 11 years. At that time, it was also the replenishment of large and downstream manufacturers, while the price of crude oil rose rapidly, which intensified the replenishment of downstream stocks.

This year, the price of crude oil has continued to run high, but downstream demand has not been improved.

We believe that the profit improvement of this round of replenishment is weaker than that of the first half of 11 years, and the time period is shorter, concentrating on 2-4 months.

At the same time, we think from the perspective of configuration, although the downstream demand of chemical industry has not been improved in real terms, based on the expectation of improvement in fundamentals and liquidity in the downward trend of inflation, as a post cyclical industry, the chemical industry still has the value of allocation after the coloured coal dance.

Judging from the supply and demand situation of each sub industry, we looked more optimistic about fertilizer, especially the urine subprime industry in the first quarter.

We recommend Hua Lu Heng Sheng, Yantai Wanhua and Shanghai Jahwa (600315) big white horse; at the same time, as the glass fiber industry's quarterly shipments increase, the peripheral demand has bottomed out, we recommend the China Fiberglass (600176); there are trading opportunities for all kinds of stock varieties that bring profits to improve simply because of the rising price of chemical products, but they are cautious; for growth stocks, we need to avoid the risk of valuation pressure.