Hengqiang, a strong player in the basic chemical sector-an inventory of the third quarter performance of listed companies in the petroleum and chemical industries (middle)

Oil and gas prices continue to rise, the implementation of the "dual carbon" strategy has been stepped up, and downstream demand has been strongly driven.
Under the influence of multiple factors, the chemical industry's prosperity has continued to rise, and integrated enterprises have shown a strong situation
.

In the first three quarters, the Shanghai Composite Index rose by 2.

Rising oil prices push up raw material prices

　Rising oil prices push up the prices of raw materials　rising oil prices push up the prices of raw materials

International oil prices directly affect the production costs of chemical companies
.

In the context of rising crude oil prices and a mismatch between global supply and demand, chemical product prices have restarted a new economic cycle

Soochow Securities analyst Liu Qiang pointed out that although the manufacturing PMI fell month-on-month in August this year, and the market expected the cycle to peak, under the background of "carbon neutrality", the cyclical prosperity is expected to exceed expectations, and the strong will become stronger
.

In the first three quarters, the prices of more than 50 categories of chemical products, including yellow phosphorous, organic silicon, liquid chlorine, natural gas, caustic soda, and acetic acid, have all increased to varying degrees, especially since July in the "dual control" and "two highs" restrictions.
Under the influence of the policy, the prices of 16 varieties of chemical raw materials have more than doubled during the year
.

Due to power restrictions in Yunnan and other regions, the price of yellow phosphorus rose from about 20,000 yuan/ton in July this year to 56,000 yuan/ton in early October; the price of phosphoric acid also rose from about 7,000 yuan/ton in July to 18,000 yuan in early October.

Integrated companies make a lot of profits

Integrated companies make a lot of profits, integrated companies make a lot of profits

In the first three quarters, a total of 2,967 companies in the two cities achieved positive growth in net profits attributable to their parents, accounting for 66% of the total number of listed companies
.

The performance of 70 companies has increased by more than 10 times (excluding loss-making companies in the same period in 2020)

　　In terms of sub-sectors, profits are mainly concentrated in two types of sectors.
The first is that the medium and long-term continue to lock the key force in the reshaping of the industrial structure.
Leading companies with integrated, large-scale, and low-cost advantages, such as being hailed by the market as the “price increase king” "The silicone industry
.

In the third quarter, the 12 listed companies in this sector achieved a total operating income of 40.

　　However, there are many chemical sub-sectors, and those companies that are sensitive to cost and demand changes and have weak bargaining power have suffered a lot, which has caused their performance growth to decline
.

For example, a number of stocks in the coatings and tires sectors have increased production but not profits.

　　Institutions are favoring chemical stocks

　Institutions are favoring chemical stocks　Institutions are favoring chemical stocks

　　With the conclusion of the performance disclosure of the three quarterly reports, the latest holdings of heavy stocks of five major institutions, including social security funds, public funds, securities firms, insurance funds and QFII, which have attracted attention from all parties, have also surfaced
.

　　Overseas funds represented by QFII are optimistic about A shares, mainly because A shares have a higher allocation value than other emerging markets
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At the same time, from the perspective of the valuation level of A shares, the value of long-term investment is increasingly apparent; while QFII holdings have long-term and stable characteristics, so they are relatively optimistic about the Ningde era and Dongfang Yuhong.

　　For the future, CICC pointed out that the strengthening of dual energy consumption control in some provinces and cities will result in a reduction in the supply of high-energy-consuming chemicals and an increase in raw material prices.
It is expected that the overall chemical product price index will continue to show an upward trend in the fourth quarter
.

However, Liu Wanpeng, chief analyst of Huaan Securities Chemical, believes that the chemical sector will still show a structural market in the fourth quarter