---
title: "Guotai Junan: Varieties with stable operating cash flow in the chemical sector may become the direction for market allocation in the near term"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/223737390.md"
description: "Guotai Junan's research report points out that recent crude oil prices have been volatile, while European natural gas prices have remained strong due to geopolitical factors. Chemical products with stable operating cash flow may become a direction for market allocation. Leading enterprises in the midstream and downstream sectors with lower costs and flexible capacity growth have long-term allocation value, recommending leading companies relative to the oil chemical route. In the next 2-3 years, the prosperity of offshore oil and gas extraction services will continue to improve"
datetime: "2025-01-02T00:06:11.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/223737390.md)
  - [en](https://longbridge.com/en/news/223737390.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/223737390.md)
generator: "portal-rs"
---

# Guotai Junan: Varieties with stable operating cash flow in the chemical sector may become the direction for market allocation in the near term

Guotai Junan's research report states that overall, recent crude oil prices have remained volatile, while European natural gas prices may be strong in the short term due to geopolitical factors. Varieties with stable operating cash flow may become the direction for market allocation in the near term. Previously, the industry had lower costs and the capacity for growth, with improved demand expectations for chemical products; moreover, the previous valuation adjustments were sufficient, and mid-to-lower-tier leading white horse enterprises have significant recovery potential and long-term allocation value. It is recommended to focus on leading enterprises in the industry with cost competitive advantages relative to the oil and chemical route. On the other hand, looking at the long term, the prosperity of offshore oil and gas exploration services is expected to continue to improve in the next 2-3 years

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**