【Summary of Research Report Content】
Investment points, growth products: after the earthquake, individual stocks will tend to diversify, and our stock selection criteria will also focus on: 1, valuation is already in the bottom area, performance and growth certainty is strong; 2. Leading enterprises in the industry really have the ability to integrate the industrial chain (horizontal and vertical mergers and acquisitions, touching the network); 3. Companies with abundant cash flow, completed additional issuance in the early stage, and the best winter preparations with money on hand; 4. The reform of state-owned enterprises looks for varieties of deterministic valuation safety.
At present, wei firmly recommends: 1) undervalued white horse value leaders: Stanley, Xinyangfeng, Kingenta, Lianhua Technology, Yangnong Chemical; 2) High-growth leader, with strong industry integration capabilities and development space: KangdeXin, Dinglong Shares, Huitian New Materials, Amway Shares, Nopuxin, Huifeng Shares; 3) In the reform of state-owned enterprises, look for varieties with strong certainty and strong valuation safety space: Jiulian Development, Black Cat Shares, Qingdao Double Star.
Cyclical products: after the earthquake, some of the oversold boom industry is expected to usher in a significant rebound, we continue to focus on: 1) monosodium glutamate and amino acids: plum blossom biology 2) rubber additives: Yanggu Huatai 3) carbon black: black cat shares. Cyclical varieties tend to be more elastic in the bottom of the market upwards, and we judge that the future prosperity and industry pattern of these sub-industries will continue to improve.
On the crude side, crude oil prices continued to decline slightly this week, mainly due to oversupply, weak demand and a stronger dollar index. On the supply side, although Iran's crude oil exports will not affect the market for the time being, the surge in production in OPEC and non-Opec member countries has led to a continuous overcapacity in the crude oil supply market. On the demand side, economic data from China, a major energy demander, showed a slowdown in economic growth and a recent underperformance in the stock market, which also reduced market expectations for crude oil demand. This week, the wti price is running in the range of $47.1-48.8/barrel, and brent price is running in the range of $52.2-53.5/barrel.
In terms of pdh, Dongguan Humen Port signed a contract for a 900,000-ton propane dehydrogenation to polypropylene project, which was invested and constructed by Shenzhen Juzhengyuan Co., Ltd., with a total investment of 7.8 billion yuan.
In terms of new materials, the first graphene conductive ink production line in China was put into operation in Qingdao. The production line adopts a unique mixing design so that nanomaterials such as graphene can be evenly dispersed into the slurry, achieving high quality and stability of the product, and can produce 30 tons of graphene conductive ink and 2000 tons of functional coatings per year.
Risk warning: the risk of falling chemical prices and serious overcapacity leading to a downturn in the economy
