The Zhitong Finance App learned that Daimo released a research report saying that it lowered the rating of neutralizing chemical fertilizer (00297) from “increasing holdings” to “synchronizing with the market”. Since the current stock price has rebounded more than 30% since November last year, the target price was lowered from HK$1.22 to HK$1.19.

The bank mentioned that as fertilizer prices began to fall, although the historical average transaction ratio for Sinochem fertilizer was higher than CNOOC Petrochemical, it doesn't think it should have a substantial premium. According to the report, the optimization of domestic prevention and control policies may boost consumption and downstream demand in many industries, including specialty chemicals. The bank is inclined to select more deeply discounted stocks disclosed in real estate projects and the consumer electronics sector, including Feikai Materials (300398.SZ).