To The Moon

China Sanjiang Chemical (02198) saw its shares surge by more than 8% at one point during the trading session. As of the time of writing, the stock was up 6.9%, trading at HK$4.03, with a turnover of HK$41.3284 million. Since December 2025, the global chemical industry has experienced a widespread "wave of price increases," with major international chemical giants such as BASF, Dow, and Huntsman simultaneously implementing frequent price hikes across multiple regions including Europe, Asia, and the Middle East. Sealand Securities indicated that efforts to counter internal competition are expected to lead to a revaluation of China's chemical industry. Subsequent measures are anticipated to significantly slow down the pace of global chemical industry capacity expansion. The Chinese chemical sector possesses substantial net cash flow from operating activities. Once expansion decelerates, the potential dividend yield is projected to rise substantially, potentially enabling a transformation from a capital-intensive operation to a high-yield investment. Sinolink Securities believes the chemical industry is currently at the bottom of a four-year downturn. Multiple indicators suggest the sector has largely bottomed out, with 2026 poised to be a potential turning point for a cyclical reversal.