Guangfa Securities: the dawn of the chemical industry cycle supply and demand, growth materials upgrade.

Guangfa Securities pointed out that the chemical industry is a typical cyclical industry, usually experiencing a cycle every 5 years, going through four stages of "profit growth - capacity expansion - profit bottoming out - capacity clearance/demand improvement". With the increase in capital expenditures turning negative, anti-inner cooling, overseas interest rate cuts, and expanding domestic demand, we are optimistic about the "dawn" of the chemical industry in the early stage of the 13th Five-Year Plan. In addition, the global technological revolution continues to accelerate, bringing new opportunities for material transformation.