Wanhua Chemical (600309): Net profit of 10.6 billion in 2018 is in line with expectations.
Predicted earnings decline year by year4.
71% of Wanhua Chemical released the results report for 2018, with revenue of 60.6 billion in 2018, an increase of 14 per year.
11%, attributable net profit of 10.6 billion, a decrease of 4 per year.
71%, in line with expectations.
The growth caused by the maximum sales scale of the business segments at the performance level, but due to the 2H18 decline in polyurethane prices, the performance performance slightly shifted.
At the same time, the company announced that after simulating the merger of Wanhua Chemical, the combined revenue in 2018 was 72.8 billion and the net profit attributable to it was 155.
Concerned about the terminal demand, the traditional peak season is approaching, and the tight supply and demand situation continues.
The price of polymerized MDI continued to rise on Monday. The current market price of polymerized MDI in East China is currently 14,650 yuan / ton, up 1,100 yuan / ton this week, and up 1,850 yuan / ton this month.
Pure MDI has a slight exploration, and the current price is 21,400 yuan / ton, which has gradually increased by 900 yuan / ton from the beginning (up 4).
The company’s listed prices for aggregated MDI / pure MDI in March were raised by 2000/1000 yuan / ton respectively.
At present, Wanhua Yantai and Ningbo MDI installations are operating normally, but the main manufacturers are generally tight in supply. During the centralized stocking period such as downstream refrigerators and freezers in March and April, the peak season starts after the holiday and MDI prices are expected to continue to increase.
In the medium and long term, new stimulus from automobiles and home appliances will stimulate the growth of aggregate MDI demand. At the same time, further attention needs to be paid to the progress of China-US trade negotiations.
In the medium and long term, the margin of supply and demand improves, and MDI prices will continue to repair.
In 2018, the world ‘s new production capacity was 48 inches. At the same time, Dow Saudi 40 initiated polymerization MDI is also concentrated in the market. In addition to Wanhua in 2019, only Covestro plans to add 20 production capacity in Brunsbuettel, Germany.The generation technology will increase the production capacity by 50 tons, and will be released at the right time. The pressure on the global supply side will shift and the supply and demand structure will improve. It is expected that MDI prices will return to the repair channel.
Petrochemical and new materials further deepened the company’s moat and further improved its layout.
The production and sales volume of petrochemical projects has increased, and the proportion of contributions has increased. At the same time, large ethylene projects will bring the advantages of industrial chain integration, and the future profit of petrochemicals is expected to exceed expectations.
Through the absorption and merger of Wanhua Chemical and the new MDI base in the United States, the company further improved the company’s layout.
Estimates and recommendations to maintain the company’s existing profit forecast of 19e / 20e3.
42 yuan, maintaining the recommended and target price of 50 yuan, corresponding to December 19/20.
6x / 11.
The price-earnings ratio is 3 times, which has 25% room compared with current expectations.
Risk crude oil prices fluctuated sharply, Sino-US trade frictions intensified, and it is estimated that the center moved downward.