wanhua(SH:600309) Haitong Securities·2024-08-19 08:39Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that despite a sluggish global economic recovery, the company's main products have achieved year-on-year sales growth. The polyurethane series sales volume reached 2.69 million tons, a year-on-year increase of 14.47%, while the average price decreased by 5.48% to 13,200 CNY/ton. The petrochemical series production volume was 2.77 million tons, up 23.11% year-on-year, although the overall profit level in the industry remains low. The fine chemicals and new materials series sales volume increased by 24.32% year-on-year, with an average price of 14,100 CNY/ton, down 7.32% [5][6] Summary by Sections Financial Performance - In the first half of 2024, the company reported operating revenue of 97.067 billion CNY, a year-on-year increase of 10.77%. The net profit attributable to the parent company was 8.174 billion CNY, a decrease of 4.60% year-on-year, while the net profit excluding non-recurring items was 8.099 billion CNY, down 2.54% year-on-year. The second quarter's net profit excluding non-recurring items was 3.972 billion CNY, a decrease of 8.09% year-on-year and 3.76% quarter-on-quarter [4][5] Sales and Production - The report indicates that the company has made significant progress in project construction and digital transformation to enhance production efficiency. The company is pushing forward with the construction of the second phase of ethylene and the first phase of Penglai, aiming for timely production. The HDI product line is becoming more competitive with the successful launch of the 180,000-ton hexamethylenediamine project [5][6] Profit Forecast - The profit forecast remains unchanged, with expected net profits for 2024, 2025, and 2026 projected at 20.007 billion CNY, 23.076 billion CNY, and 25.639 billion CNY, respectively. The corresponding EPS for these years is estimated to be 6.37 CNY, 7.35 CNY, and 8.17 CNY. The report maintains a price-to-earnings ratio (PE) of 13-15 times for 2024, with a reasonable value range of 82.81-95.55 CNY [5][6][9]