wanhua(SH:600309) Minsheng Securities·2024-10-29 10:31Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its future performance [3][5]. Core Views - The company has faced pressure on its current performance, with a year-on-year decline in net profit, but the long-term growth trend remains intact [1]. - The company has seen steady growth in sales volume across its main product lines, with all three major segments (polyurethane, petrochemicals, and fine chemicals/new materials) showing quarterly year-on-year growth rates exceeding 15% [2]. - Several projects are progressing steadily, and adverse factors affecting performance are expected to dissipate in the fourth quarter, allowing for recovery in related businesses [2][3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved operating revenue of 147.604 billion yuan, a year-on-year increase of 11.35%, and a net profit attributable to shareholders of 11.093 billion yuan, a year-on-year decrease of 12.67% [1]. - In Q3 2024, the company reported sales revenue of 50.537 billion yuan, a year-on-year increase of 12.48%, but a quarter-on-quarter decrease of 0.73% [1]. - The company’s main product sales volumes in Q3 2024 were 1.41 million tons for polyurethane (up 15.97% year-on-year), 1.32 million tons for petrochemicals (up 15.04% year-on-year), and 500,000 tons for fine chemicals and new materials (up 15.38% year-on-year) [2]. Future Projections - The company is projected to achieve net profits of 14.846 billion yuan, 17.674 billion yuan, and 20.519 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 17x, 14x, and 12x [3][4]. - The expected growth rates for operating revenue from 2024 to 2026 are 5.9%, 13.4%, and 18.4%, respectively [4][6]. Key Projects and Developments - The company is enhancing its competitive edge through ongoing projects, including the expansion of MDI capacity in Fujian from 400,000 tons/year to 800,000 tons/year and the successful commissioning of an 180,000 tons/year hexamethylenediamine project in Ningbo [2][3]. - The company is also advancing new business lines, including the production of lemon aldehyde and flavoring agents, which are expected to contribute positively to future revenues [2].