wanhua(SH:600309) CHINA DRAGON SECURITIES·2024-08-19 10:11Investment Rating - The investment rating for Wanhua Chemical is "Buy" with a target price of 70.36 CNY [4][3]. Core Views - The report highlights that Wanhua Chemical is positioned well for long-term growth, with a focus on the integrated industrial chain and global competitive advantages. The company is expected to see steady profit growth in the coming years [4][3]. Summary by Sections Financial Performance - In the first half of 2024, the polyurethane segment saw a year-on-year sales increase of 14.47% and revenue growth of 8.19%. The MDI prices showed an upward trend, while TDI and polyether markets faced a downturn [3]. - The petrochemical segment experienced a significant year-on-year sales decline of 59.8%, although revenue increased by 9.53% due to fluctuations in international oil prices and insufficient downstream demand [3]. - The fine chemicals and new materials segment reported a sales increase of 24.32% year-on-year, with revenue growth of 15.23% [3]. Profit Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 17.91 billion CNY, 22.35 billion CNY, and 25.23 billion CNY, respectively. The corresponding P/E ratios are projected to be 12.34, 9.88, and 8.76 [4][5]. Valuation Metrics - The report provides a comparison of Wanhua Chemical's valuation metrics with peer companies, indicating a P/E ratio of 12.34 for 2024, which is competitive within the industry [6][5]. Market Data - As of August 15, 2024, Wanhua Chemical's market capitalization is approximately 220.91 billion CNY, with a trading range over the past 52 weeks between 66.78 CNY and 99.10 CNY [3].