Orient Securities research note says restraint by the US and Iran has improved expectations for Strait of Hormuz transit, creating a near-term window for the chemical sector. The firm views chemical fundamentals and valuations as close to a trough and recommends prioritizing sub-sectors and stocks with strong Q2 earnings that can support valuations during sector volatility. It flags phosphate chemicals as a recovery opportunity after a 50,000-ton sulfur cargo transited the Strait of Hormuz to a

Orient Securities research note says restraint by the US and Iran has improved expectations for Strait of Hormuz transit, creating a near-term window for the chemical sector. The firm views chemical fundamentals and valuations as close to a trough and recommends prioritizing sub-sectors and stocks with strong Q2 earnings that can support valuations during sector volatility. It flags phosphate chemicals as a recovery opportunity after a 50,000-ton sulfur cargo transited the Strait of Hormuz to a southern Chinese port, a signal likely to improve phosphate producers’ profit outlook. Recommended plays include MDI leader Wanhua Chemical, PVC-related names, leading refining & petrochemical firms, and agrochemical tech/service leaders. Key risks are demand falling short of expectations, policy uncertainty and large oil-price swings.