Wanhua Chemical (600309): The integrated industry map has initially improved its operations and maintained steady growth.

Wanhua Chemical (600309): The integrated industry map has initially improved its operations and maintained steady growth.

Event: The company released its annual report: In 2018, it achieved operating income of 606.

2.2 billion, an increase of 14 every year.

11%; Net profit attributable to shareholders of listed companies 106.

10ppm, an average of 4 in ten years.

71%; non-net profit attributable to mother is 100.

34 trillion, sixth grade 6.

31%; realized profit 3.

88 yuan.

Allocation plan starts with 31.

A base of 3.9 billion shares, a cash dividend of 20 yuan (including tax) will be distributed to all shareholders for every 10 shares.

Comments: 1. The increase in the company’s revenue in 2018 was mainly based on the petrochemical and new materials business, while the profit was mainly due to the substitution of polyurethane gross profit.

Number of reports, company income increased by 74.

9.8 billion, an increase of 14 every year.

11%, of which petrochemical business contributed 48% of the increase.

03%, the remaining fine chemical new materials business and polyurethane business respectively contributed an increase of 20.

09% and 14.

91%; but due to the decrease in the price of polyurethane business products2.

At the same time, costs rose by 8%.

46%, the increase in sales in the petrochemical business was mainly due to the less profitable LPG trading business, so even if the revenue increased, the company’s gross profit decreased by 5.

$ 8.3 billion, which led to a decline in operating profit and net profit.

2018Q1 / Q2 / Q3 / Q4 companies achieved net profit attributable to their mothers in a single quarter of 35.

56/34.

04/20.

71/15.

8.9 billion yuan, a year-on-year increase of 62%, 28%, -30% and -51%; the net profit attributable to mothers in the second half of 2018 achieved 36.

6 billion, 47 than the crude oil.

41%, contrary to the long-term changes in 2017. It can be seen that short-term MDI price fluctuations have the greatest impact on company profits.

2. MDI prices have repeatedly increased in 2019, and aggregate MDI prices have increased by 65% compared to the beginning of the year.

The fall of China’s MDI prices from the high point of 2017-2018 is a return to the fundamentals of supply and demand. The aggregate adjustment of MDI price changes in the fourth quarter of 2018 did not have to be too pessimistic about the industry’s profit. The continued rebound of prices in 19 also reflected the leading role of a good supply layoutEnterprise’s ability to control prices.

At present, the market price of polymerized MDI is 17800-18000 yuan / ton, and the mainstream price of pure MDI is 24,000-25,000 西安桑拿网 yuan / ton.

In the second half of 2019, the market will be more complicated. Wanhua Chemical’s existing MDI capacity will be increased by 80 through technological transformation, and costs will be degraded and increased. Therefore, even if the MDI price is adjusted slightly, Wanhua Chemical will ensure product profitability by reducing costs.Massive increase the company’s MDI business’s net profit level.

3. Petrochemical trading business increased revenue, but did not increase comprehensive profit.

Report on the realization of petrochemical business of core companies 189.

08 million yuan, an annual increase of 23.

52%; gross profit margin 9.

98%, a decrease of 2 over the same period last year.

5 averages.

Judging from the main products of the entire petrochemical industry chain, the average price of Shandong alumina market is 8,514 yuan / ton, an increase of 13 compared with the same period last year.35%; the average market price of propylene oxide in East China is 12,085 yuan / ton, an increase of 10 compared with the same period last year.

76%; East China butanol market average price of 7653 yuan / ton, an increase of 12 from the same period last year.

36%; the average price of butyl acrylate in East China was 10,140 yuan / ton, an increase of 3 compared with the same period last year.

23%; Shandong MTBE market average price of 6019 yuan / ton, an increase of 13 from the same period last year.

89%; the average market price of neopentyl glycol in East China was 12,564 yuan / ton, a decrease of 14 compared with the same period last year.

17%.

From the perspective of the whole year of 2018, the price of the company’s petrochemical products has fluctuated from the same period of last year, with growth mainly.

Due to the increase in cost, the profit of the petrochemical business remained the same in the second half and the first half of the year, except for trade products. The profitable LPG trade accounted for more than the first half of the sales volume in the second half, which resulted in a decrease in the overall gross profit margin.

4. The production and sales volume of fine chemicals and new materials business continued to increase, prices continued to weaken, and profits continued to maintain a good level.

Reported that the company’s fine chemicals and new materials series achieved revenue 57.

2 billion, an annual increase of 26.

39%; gross margin 31.

33%, a decrease of 0 from the same period last year.

17 averages.

The company’s main products include SAP, TPU, PC, PMMA, organic amines, ADI, water-based coatings and other products, with a total of 32 production in 2018.

89, sales 32.

In 2017, the annual growth rate is more than 30%. The increase in production and sales is the beginning of revenue and profit growth.

At the cutting edge, the company has expanded its R & D and marketing capabilities in the fine chemicals and new materials business segment for technology and market development.

Wanhua Phase 1 Phase 7 / year polycarbonate plant has been put into production in early 2018.

The second phase of the project is currently under construction. After completion, it will form a new pillar industry centered on high-end engineering plastics PC.

The first phase of Wanhua Chemical’s annual production of 8 to PMMA project was successfully started at the beginning of 2019 and reorganized qualified products. Many indicators of the products reached European and Japanese mainstream product levels.

The special isocyanate business includes HDI, H12MDI, IPDI and other major varieties. There are nearly 30 cases of global demand. The downstream is mainly automotive coatings and other fields. Wanhua products have been recognized by major global customers.

The special amine business is a unique business platform built by Wanhua based on the hydrogenation technology platform. Part of its products are supplied to Wanhua’s internal special isocyanate customers. The export is mainly for the high-end epoxy resin curing agent market.

With the continuous development of high-end wind power, electrical appliances, jewelry and other high-end epoxy resin fields, the industry will continue to grow at a high speed in the future.

5. Maintain “Highly Recommended-A” investment rating.

The production capacity of Wanhua Yantai Industrial Park will be increased to 110 units / year, and the production capacity of Ningbo Industrial Park will be increased to 150 units / year. A total of 40 new MDI units and integrated supporting projects will be built in Louisiana, USA.

At this point, Wanhua will have production bases in three markets in Asia, the United States and Europe, to achieve layout.

The company’s 30-ton TDI, 5-minute / year MMA, and 8-ton / year PMMA will be put into production in 2019. The structure of multi-category products has been gradually improved, and integration and refinement strategies have been integrated. The execution of projects in the petrochemical field is reflected in C3 and C2Smooth progress of the industrial chain; Wanhua Chemical’s future growth path is very clear.

Wanhua Chemical absorbed and merged Wanhua Chemical through issuing new shares, and the integration of high-quality assets was completed.

Our corresponding financial calculation indicators that simulate possible adjustments after the merger, so we make corresponding adjustments, and believe that the company’s profitability for 2019-2021 will be 4.
.

25 yuan, 4.

66 yuan, 5.

53 yuan.

The company’s subsequent construction of several heavy-weight products has been smoothly advanced, maintaining the investment rating of “Highly Recommended-A” unchanged.

6. Risk warning.

The risk of the company’s MDI product prices falling sharply; the price of petroleum products falling sharply; the expected risks brought by the marketing of special chemical products;