Wanhua Chemical (600309): 40th Anniversary Successfully Closes Customs and Accelerates in 2019
Event description: On April 22, the company announced the 2018 annual report.
According to the announcement, the company achieved revenue of 606 in 2018.
21 ppm, an increase of 14 in ten years.
11%; net profit attributable to mother 106.
10 ‰, a decline of 4 per year.
71%; estimated average return on net assets increased by 36.
82%, a decrease of 13 per year.
84 partnerships; net cash flow from operating activities was 192.
570,000 yuan, an increase of 79 in ten years.
85%; 2 yuan (including tax) for every 10 shares, accounting for 59% of net profit attributable to the mother.
According to the special preparation of the basic financial report, after absorbing and merging Wanhua Chemical, the company realized revenue of 728 in 2018.
37 ppm, an increase of 12 in ten years.
33%; net profit attributable to mother 155.
6.6 billion, down by 1 every year.
Incident analysis and description: 1. 2018 successfully closed 2018 was the 40th anniversary of the founding of Wanhua. Wanhua made great progress in all aspects in 2018 and successfully closed the customs.
First, Wanhua completed the overall listing, laying an important institutional foundation for future leapfrog development, and the company completed the integration of BC Company. The US project was officially announced and the internationalization strategy was quickly implemented.
In terms of technological innovation, the company’s research and development expenses in 2018 reached 1.6 billion U.S. dollars, an increase of 30%. The company applied for a total of 424 domestic and foreign invention patents. The MDI industry chain has steadily implemented three MDI device intelligence and technological transformation and expansion programs.In addition, the company has also set up new platforms such as synthetic biology, electrochemistry, battery materials, information materials, etc., for rapid forward-looking research and layout for the future. In terms of markets, the company has expanded the development of overseas markets for MDI, and its export share has further increased.In terms of production and operation, continue to deepen the safety management and cost management of Yantai and Ningbo production bases, and the Meishan base has also been officially launched in 2018; in terms of management innovation, further pioneering in safety management, operational excellence, and corporate culturejobs.
(1) Polyurethane products continue to strengthen synergy: The company’s polyurethane products achieved revenue of 309.
52 ppm, a 10-year increase3.
75% of the existing MDI production capacity of 210 subsidies, is the company’s main source of income; and plans to increase production capacity of Yantai Industrial Park 50 replacement, Ningbo Industrial Park increased production capacity 30 replacement, and plans to invest in the United States to build 40 cutting-edge MDI devices andIntegrated supporting factories.
In 2018, the company’s polyurethane output (isocyanates, polyols, combined polyethers, etc.) reached 187.
42 for the first time, with an annual increase of 2.
99%, Yantai and Ningbo Industrial Park MDI integration project operating rate reached 87.
In addition, isocyanate and polyol have a strong synergistic effect. The company has gradually become a full-scale polyol manufacturer in China; and the 成都桑拿网 company’s annual output of 30 tons of TDI devices has been put into production at the end of 2018. Wanhua has become an important TDI supplier in the industry.
(2) Perfect industrial layout of petrochemical products: The company’s petrochemical products revenue reached 189.
08 million yuan, an annual increase of 23.
Relying on the advantages of technological innovation, based on butyl primary derivatives such as acrylic acid / butanol / ethylene oxide, the company has developed the super absorbent resin SAP, neopentyl glycol NPG, and polyether multicomponent with unique advantages of Wanhua.Alcohol, MIBK, isophorone and other high value-added fine products have become important domestic starch and derivative manufacturers; they have also entered the isobutene and derivatives field through world-class PO / MTBE devices.
In the future, the company will involve more downstream high value-added derivative products of diabetes and become an important supplier of alternatives and derivatives in China.
The company’s existing 75-inch formaldehyde, 36-inch butyl acrylate, and 26-inch butyl epoxy resin are under preparation. The 100-ton / year ethylene joint unit is planned to be completed by the end of 2020.
(3) Rapid growth of fine chemicals and new materials: The company’s fine chemicals and new materials achieved revenue 57.
30,000 yuan, an increase of 35 in ten years.
The new materials business continues to expand as the company’s industrial chain, producing high value-added products, weakening the industry’s gradual and important part, and developing rapidly in the long run.The company’s first phase 7 budget / year PC project has been put into production in January 2018. At present, the second phase 13 indicator / year project is under construction. After completion, it will form a new pillar industry with high-end engineering plastics PC as its core.
The company’s 5 preliminary / year MMA projects and 8 indicators / year PMMA projects have been put into production in early 2019, and many of its products have reached European and Japanese mainstream product levels.
The global demand for special isocyanates (HDI, H12MDI, IPDI) is nearly 30 tons, which are mainly used in automotive coatings and other fields. The company’s products have been recognized by major customers worldwide.
The special amine business is a unique business platform built by the company based on the hydrogenation technology platform. Part of the products are supplied to the special isocyanate customers within the company, and some of the exports are mainly for the high-end epoxy resin curing agent market.
2.Accelerating 2019 in 2019, the polyurethane industry has made a good start. In the first quarter, the price continued to rise due to the downstream replenishment. In 2019, the only Wanhua in the world had supplementary MDI power generation, which was affected by the centralized maintenance in the second quarter.The easing of downstream demand has improved, and MDI prices have remained relatively high.
In 2019, the company plans to realize sales revenue of 73 billion yuan (after the merger, it is basically the same as 2018).
2019 is the first year of the company’s overall listing. The company will work in accordance with the idea of “grasping reform, consolidating the foundation, controlling costs, and seeking the future”.
The scale of the company should continue to accelerate the construction and layout of the project, and improve the company’s international competitiveness. In 2019, the million-tonne ethylene project entered the peak period of construction.Improve and perfect the warehouse logistics system, technology center, and service center; replace, supplement more research and development resources, and constantly occupy the commanding heights of new chemical material technology.
3. Investment rating and estimation Considering the overall asset injection after listing, we estimate that the company’s net profit attributable to its parent in 2019-2021 will be 122.
2.5 billion, with EPS of 3.
45, corresponding PE is 12, respectively.
57. Maintain the “Highly Recommended” rating.
4. Risk warning: MDI prices are highly volatile, and the project’s production progress is less than expected; the risk of M & A projects reaching their promised performance; and oil price fluctuations.