wanhua(SH:600309) Huaan Securities·2024-02-04 16:00Investment Rating - The investment rating for Wanhua Chemical is "Buy" (maintained) [5] Core Views - Wanhua Chemical reported a year-on-year improvement in Q4 2023 performance, with revenue reaching 175.36 billion yuan, a 5.92% increase, and net profit attributable to shareholders at 16.81 billion yuan, a 3.57% increase [1] - In Q4 2023, the company achieved revenue of 42.81 billion yuan, a 21.80% year-on-year increase, and a net profit of 4.11 billion yuan, a 56.58% year-on-year increase, exceeding market expectations [2] - The company is advancing new production capacities in MDI and TDI, with significant projects expected to come online in 2024, which will enhance future performance [3] - Wanhua Chemical emphasizes high dividend payouts, maintaining a cash dividend ratio above 30% of net profit attributable to shareholders [4] Summary by Relevant Sections Financial Performance - In 2023, Wanhua Chemical's revenue was 175.36 billion yuan, with a year-on-year growth of 5.92%, and net profit was 16.81 billion yuan, growing by 3.57% [1] - Q4 2023 saw a revenue of 42.81 billion yuan, up 21.80% year-on-year, and net profit of 4.11 billion yuan, up 56.58% year-on-year [2] Market Dynamics - The average prices for key products in Q4 2023 were 15,673 yuan/ton for polymer MDI, 20,866 yuan/ton for pure MDI, and 17,110 yuan/ton for TDI, reflecting a decline compared to previous quarters [2] - Despite a weak demand environment, MDI export volumes remained high, with polymer MDI exports reaching 1.0437 million tons in 2023 [2] Growth Prospects - New production capacities in Ningbo and Fujian for MDI and TDI are being developed, with additional projects in POE and lemon aldehyde expected to start production in 2024 [3] - The company is also increasing capital expenditures in the new energy sector, aiming to establish a comprehensive lithium extraction and resource recycling industry chain [3] Dividend Policy - Wanhua Chemical has consistently maintained a high dividend payout ratio, with cash dividends exceeding 30% of net profit in recent years [4]