The prosperity of the chemical industry is still in the low position

At present, the prosperity of chemical industry is still at a low level, but the advantage leader has established a strong moat in cost and scale, and still has good profitability. Wanhua chemical and Hualu Hengsheng are recommended. Wanhua chemical has the world's first MDI capacity, and the million ton ethylene project under construction is expected to be put into production in the second half of 2020. At the same time, nylon 12, citral and other heavy-duty products will be launched in succession. At present, the MDI price is at a low level in nearly three years, and the cycle low point has the growth attribute, so it should give the company a higher valuation. Hualu Hengsheng has a significant cost advantage in coal chemical industry, with an annual excess of 2 billion In terms of revenue, the bottom of the cycle has a high margin of performance safety. At the same time, the performance of glycol, acetic acid and other products is flexible. In the future, the company's profit will be greatly enhanced if the cycle goes up.