Looking back on the chemical sector in the past decade, it is not difficult to find that, in addition to the bull market, the chemical sector basically no large level. Retroactively, the reasons are nothing more than two: on the one hand, the fundamentals of the industry is not good, 16 years ago, the serious overcapacity; On the other hand, the subfields of the chemical sector are too complex to form resultant forces.
However, with the impact of supply-side reform and environmental protection policies, backward production capacity has been eliminated, excess production capacity has been suppressed, and even the supply of products is in short supply. Finally, the chemical industry ushered in an inflection point!
In terms of performance, the seven sub-sectors of the petrochemical industry last year saw very rapid growth in the net profit of the parent company. In the first quarter of 2018, among the seven sub-industries, only the natural gas sector's parent company's net profit decreased by 0.85% year on year, while the performance of other sectors was still brilliant!