Daily chemical industry in the upstream and downstream extrusion dilemma to seek new development

Industry capacity of rapid expansion, has huge potential market demand. Macro economy sustained, rapid and stable development and revenue growth for the industry to expand demand support, the industry is still in the life cycle of growth, the future market demand potential is tremendous. We expect in daily chemical industry to compound growth rate will remain in the % - Between %. Industry faces three big challenges. , domestic competition, the overall development of the foreign market. , PPI and CPI down compressed profit space. , resource and the refined oil pricing mechanism reform of increasing cost pressure, industrial policy tighter raise barriers to entry. The international energy and resource prices and new business model innovation brings the development of an enterprise. Energy and raw material price trend higher, back in the short term profit opportunity. Innovative business model and differentiation route or will bring new industry growth point: through new channels to bring new market and development of new products; Through developing alternative new materials around cost barriers; Through differential operation dissolve the upstream and downstream pressure. Valuation and focus on company. The average PE of domestic listed chemical companies. 、铅。 , with the dow Jones industrial average in the cosmetics/personal hygiene supplies industry average PE. Times higher, the valuation of the industry as a whole is on the high side. Considering the cosmetic market in China is still in the growth period, it is suggested that attention in the industry leading position, has advantage of brand, Shanghai jahwa affected by the rising cost of the smaller company.