Wanhua Chemical (600309): Performance basically meets expectations and continues to be optimistic about future development
Performance summary: The company 南京夜网 achieved operating income of 315 in the first half of 2019.
4 ‰, a decrease of 15 per year.
4%; net profit attributable to mother is 56.
200 million, an annual decline of 46.
5%.
The performance indicators are mainly due to the decline in MDI prices.
The growth rate of the company’s performance in the first half of the year has been declining, mainly due to the sharp decline in MDI prices. In the first half of this year, the average price of polymerized MDI in Shandong in China was 14,466 yuan / ton, which was 36% lower than the average price of the same period last year.
6%, the spread fell by 53 compared with the same period last year.
4%, the average domestic price of pure MDI in the first half of this year was 21,642 yuan / ton, down 29 from the same period last year.
2%, the spread is 22 lower than the 北京桑拿体验网 same period last year.
3%.
At the same time, due to the impact of crude oil prices and terminal demand, the company’s petrochemical products mostly showed a downward trend. The average price in Shandong was 7,308 yuan / ton, a decrease of 10 compared with the same period last year.
35%; the average price of propylene oxide in Shandong is 9,825 yuan / ton, a decrease of 16 compared with the same period last year.
82%; the average MTBE price in Shandong was 5,342 yuan / ton, a decrease of 10 compared with the same period last year.
9%; the average price of butanol in Shandong was 6622 yuan / ton, a decrease of 11 compared with the same period last year.
54%; NPG East China refueling average price of 10,122 yuan / ton, a decrease of 22 compared with the same period last year.
3%.
Therefore, the company’s gross profit margin dropped by about 11 values to 31 in the first half of the year.
4%.
At the same time, the company continued to increase R & D investment, and the R & D expenses in the first half of the year increased significantly.
1% to 8.
300 million.
Acquisition of stake in Swedish International Chemicals to further strengthen the core moat.
The company recently announced that Wanhua Chemical (Sweden) Holding Co., Ltd., a wholly-owned subsidiary of the company, acquired 100% of Chematur Technologies AB (“Sweden International Chemical”) held by Jilin City Cornell Investment Group Co., Ltd. and Europe and America Energy Technology Co., Ltd.Equity, the total purchase amount is approximately equivalent to RMB 925,445,229. The above equity transfer process has been completed. At the same time, Cornell will need to fulfill the following obligations: By adjusting the equity structure of Fujian Cornell Polyurethane Co., Ltd., the final shareholding ratio will be:Chemical holds 80% and Cornell holds 20%.
The acquisition of Wanhua Chemical will further realize the global monopoly of isocyanate technologies including MDI and TDI, and the industry barriers will be significantly increased.
At the same time, Wanhua Chemical’s move will further increase domestic MDI production capacity and further strengthen the core moat in domestic MDI technology.
The overall listing is completed, and future growth is started.
The company’s absorption and merger of Yantai Wanhua Chemical Co., Ltd. and related transaction plans have been completed. The 100% BC shares held by Wanhua Chemical and Wanhua Ningbo 25.
5% and Wanhua Chlor-Alkali Thermoelectricity will be injected into listed companies to achieve the overall listing of chemical assets owned by Wanhua, and to solve the problem of competition in the industry that has always existed after Wanhua Industrial acquired BC Chemical in 2011.
Columbia Corporation of Maryland is the largest MDI and TDI manufacturer in Central and Eastern Europe. It uses MDI capacity of 30 tons and TDI capacity of 25 tons. Its business scope covers Europe, the Middle East and Africa, making it the eighth largest polyurethane manufacturer in the world.
After BC’s affiliated listed company, Wanhua Chemical will become the world’s largest MDI supplier (210 capacity), realizing the layout of production bases (and preparations) in three major markets in Asia, Europe and the Americas.Realize the integration of the company’s production and operation.
At the same time, the company’s TDI project in the fourth quarter of last year, the future production of 100 tons of large-scale ethylene projects, and new material projects such as MMA / PMMA will further open up the company’s growth space, continue to improve the company’s performance level, and the construction of US MDI projects in the future will furtherDevelopment and promotion of Wanhua Chemical’s international level.
Earnings forecasts and investment advice.
We expect EPS to be 4 in 2019-2021.
05 yuan, 4.
71 yuan, 5.
20 yuan, corresponding to PE is 11X, 9X, 8X, maintaining the “buy” level.
Risk reminder: the risk of a sharp rise in the price of MDI; the risk of putting ethylene projects into production is less than expected.