wanhua(SH:600309) SINOLINK SECURITIES·2025-04-16 00:23Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][14]. Core Insights - In 2024, the company achieved revenue of 182.069 billion RMB, a year-on-year increase of 3.83%, while the net profit attributable to shareholders was 13.033 billion RMB, a decrease of 22.49% [2]. - For Q1 2025, the company reported revenue of 43.068 billion RMB, down 6.70% year-on-year, with a net profit of 3.082 billion RMB, down 25.87% [2]. - The company’s various business segments are performing stably, with polyurethane sales revenue at 75.844 billion RMB and a gross margin of 26.15% in 2024 [4]. Financial Performance Summary - Sales expenses increased by 20.25% year-on-year to 1.619 billion RMB in 2024, driven by the expansion of marketing and logistics efforts [3]. - Management expenses rose by 23.38% to 3.023 billion RMB, reflecting increased personnel costs [3]. - R&D expenses grew by 11.51% to 4.550 billion RMB, indicating ongoing technological upgrades [3]. - Asset impairment losses surged by 446.94% to 740 million RMB, primarily due to inventory write-downs and fixed asset impairments [3]. Segment Performance - The polyurethane segment is expected to expand its MDI capacity to 4.5 million tons per year by mid-2026, with a current capacity of 3.8 million tons [4]. - The petrochemical segment generated sales of 72.518 billion RMB in 2024, with a gross margin of 3.52% [4]. - The fine chemicals and new materials segment reported revenue of 28.273 billion RMB, with a gross margin of 12.78% [4]. Profit Forecast and Valuation - The projected net profits for 2025, 2026, and 2027 are 13.970 billion RMB, 14.636 billion RMB, and 15.804 billion RMB, respectively, with corresponding EPS of 4.45, 4.66, and 5.03 RMB per share [5]. - The current market valuation corresponds to P/E ratios of 12.64X, 12.07X, and 11.18X for the years 2025, 2026, and 2027 [5].