The chemical industry is expected to enter the best demand peak season of the year.
With the recent release of the performance forecasts for the first three quarters of 2024 by A-share companies, the listed companies in the chemical industry have frequently pre-announced positive performance.
According to incomplete statistics from reporters, as of the evening of October 15th, nearly 20 listed companies in the chemical industry have disclosed performance forecasts for the first three quarters of this year, with Jiangsu Zhengdan Chemical Industry, Yunnan Yuntianhua, Link Technology, and other companies releasing reports for the third quarter of 2024.
Among the companies that have already disclosed performance forecasts, over 90% are expected to be profitable, with many companies turning losses into profits year-on-year; nearly 10 companies are expected to achieve a performance increase of over 100% year-on-year, Brother Enterprises Holding anticipates a performance increase of over 10 times year-on-year.
Some listed companies in the chemical industry attribute the main reasons for the growth in performance in the first three quarters to: the recovery of industry prosperity, the increase in comprehensive product gross margin, and the improvement in profitability.
Huaxin Securities' research report points out that with the arrival of the busy season of the year-end, the chemical industry is expected to enter the best demand peak season of the year. In addition to recommending continued focus on tire commercial businesses, upstream mining industries, titanium dioxide industries, and others with potential for performance to exceed expectations, it also suggests paying attention to the valuation recovery opportunities of leading companies in segmented industries.
Specific recommendations are as follows: In the context of supply and demand mismatch in 2024, the characteristics of the bottom have become evident, as the industry gradually enters the best demand peak season of the year, some leading companies in segmented industries have the opportunity for triple bottom investment.
Continued recommendation to focus on the investment opportunities of the leading companies in the segmented sub-industries with a clear and stable competitive landscape, complete industry chain, and super cost advantages brought by scale expansion.
Chemical industry segmented related industry chain companies:
Companies in the chemical industry subsectors to consider: Sinopec Corp (00386), Sinopec SEG (02386), L & M Chemical (00746), Yip's Chemical (00408), China Sanjiang (02198), Tsaker NE (01986), China Risun GP (01907), Tiande Chemical (00609), and more.