wanhua(SH:600309) Guotai Junan Securities·2024-10-31 04:12Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company's Q3 performance was below expectations, but its competitive advantages remain strong, and multiple projects are set to commence production soon [1][2]. - The target price is set at 90.76 CNY, based on a PE ratio of 15.13 for 2025 [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 147.6 billion CNY, a year-on-year increase of 11.35%, and a net profit attributable to shareholders of 11.093 billion CNY, a year-on-year decrease of 12.67% [2]. - In Q3 2024, the company reported a revenue of 50.54 billion CNY, a year-on-year increase of 12.48%, but a quarter-on-quarter decrease of 0.73%. The net profit for Q3 was 2.92 billion CNY, down 29.41% year-on-year and 27.33% quarter-on-quarter [2]. - The gross margin for Q3 was 13.4%, down 4.03 percentage points year-on-year, and the net margin was 6.59%, down 3.66 percentage points year-on-year [2]. Production and Sales - The company’s total production in Q3 was 3.13 million tons, a year-on-year increase of 15%, while total sales were 3.23 million tons, also up 15% year-on-year [2]. - The revenue per ton in Q3 was 14,927 CNY, reflecting a year-on-year increase of 6% [2]. Project Developments - The company is focused on technological innovation and optimizing its industrial structure, with ongoing projects in polyurethane, petrochemicals, and new materials [2]. - Key projects include the upgrade of the MDI facility in Fujian from 400,000 tons/year to 800,000 tons/year, and expansion plans for the MDI capacity to 1.5 million tons/year [2].