Short-term changes in the chemical industry brought about by carbon neutrality

However, it is not difficult to find that evergreen trees such as Wanhua Chemical have occupied the top ten positions in the chemical market value since 2005, and have been in the first position for many years. Through our analysis above, although it has a certain relationship with the special properties of the polyurethane industry, Wanhua Chemical has grasped the development trend of the industry, integrated refining and chemical upward, and entered new materials downward. Important decisions such as the rapid layout of the new energy field also make Wanhua Chemical able to maintain long-term green.

Therefore, we believe that the chemical enterprises with potential in the future should follow the trend of The Times, grasp the industry trend, and carry out forward-looking industrial layout, and the industrial investment logic will eventually let the later comers catch up and even surpass.

3.2. Behind the choice is the support of multiple factors such as capital, research and development, and cost

In the context of correct planning and choice, we believe that its abundant capital (cash flow, ability to absorb funds), long-term continuous R&D investment accumulation and other factors have important supporting roles for the future development of enterprises. We have counted the top 10 listed chemical companies in the following four dimensions since 2018 (2018 was chosen because accounting standards began to require the disclosure of R&D expenses) : Market value appreciation (simulation of enterprise development), cumulative R&D expenses (simulation of R&D investment), cumulative increase in fixed assets (simulation of capital expenditure intensity), cumulative cash flow from operating activities (simulation of access to funds).

Through comparison, we find that Wanhua Chemical, Rongsheng Petrochemical, Hengli Petrochemical and other companies have good performance in multiple dimensions such as capital acquisition ability, capital expenditure intensity and research and development investment, which makes their market value increase in the past four years among the top ten. Njie Shares, Salt Lake Shares, Tianci Materials, Satellite petrochemical, Sinoma Technology is by grasping the development trend of the industry, in the new energy, refining and chemical track has outstanding performance.

Although some traditional enterprises have capital advantages, the lack of research and development and capital investment makes the growth relatively lagging, so we believe that capital advantages, research and development advantages and capital investment under the selection track are crucial to the development of chemical enterprises.