wanhua(SH:600309) ZHONGTAI SECURITIES·2024-11-01 10:36Investment Rating - The report maintains a "Buy" rating for Wanhua Chemical [1][2] Core Views - The company's short-term performance is under pressure due to maintenance and rising costs, but its long-term growth potential remains promising [1][2] - The company achieved a revenue of 175.4 billion yuan in 2023, with a projected increase to 200.5 billion yuan in 2024, reflecting a year-on-year growth rate of 14% [1][2] - The net profit attributable to shareholders is expected to decline to 14.7 billion yuan in 2024, with a recovery projected in subsequent years [1][2] Financial Performance Summary - Revenue (Million Yuan): - 2022: 165,565 - 2023: 175,361 - 2024E: 200,467 - 2025E: 250,576 - 2026E: 280,911 [1] - Net Profit (Million Yuan): - 2022: 16,234 - 2023: 16,816 - 2024E: 14,745 - 2025E: 18,008 - 2026E: 22,391 [1] - Earnings Per Share (Yuan): - 2022: 5.17 - 2023: 5.36 - 2024E: 4.70 - 2025E: 5.74 - 2026E: 7.13 [1] - Cash Flow Per Share: - 2022: 11.57 - 2023: 8.53 - 2024E: 10.67 - 2025E: 12.45 - 2026E: 13.45 [1] - Return on Equity: - 2022: 20% - 2023: 18% - 2024E: 13% - 2025E: 14% - 2026E: 15% [1] Market and Industry Insights - The company is experiencing a decline in profitability due to maintenance and increased costs, with a significant drop in net profit in Q3 2024 [1][2] - The company is expanding its new materials segment, with significant projects like the POE and citral production facilities coming online, indicating a shift towards becoming a platform enterprise in new materials [2][3] - The report anticipates a recovery in profitability driven by new capacity and improved market conditions in the petrochemical sector [2][3]