Huaan Securities' research report pointed out that the most pessimistic time for the chemical industry has passed. From the supply side, the capital expenditure growth rate of the chemical industry will slow down in 2024; from the demand side, real estate policies continue to be relaxed, purchase restrictions and credit policies are gradually being lifted, coupled with the further expansion of new energy vehicle exports, the demand for chemical products in overseas markets is further opening up, and the supply and demand pattern is gradually improving. As the economy gradually recovers, chemicals are the strongest weapon in a cyclical upturn and have a global competitive advantage, and the industry is expected to enter an upward cycle. Recommended stocks to follow: Wanhua Chemical Group, Zhejiang Juhua, Yunnan Yuntianhua.