Core Viewpoint - Minsheng Securities report indicates that Wanhua Chemical's quarterly net profit remains stable, with significant growth in petrochemical and new material sales [1] Sales Performance - In the first half of the year, the sales volume of major products continued to grow, with Q2 showing rapid growth in petrochemical and fine chemical products [1] - In Q2 2025, the sales volume of polyurethane products reached 1.58 million tons, a year-on-year increase of 2.72% and a quarter-on-quarter increase of 8.97% [1] - Petrochemical products achieved a sales volume of 1.52 million tons, with a year-on-year increase of 11.59% and a quarter-on-quarter increase of 14.29% [1] - Fine chemicals and new materials recorded a sales volume of 650,000 tons, reflecting a year-on-year increase of 16.98% and a quarter-on-quarter increase of 20.37% [1] Subsidiary Performance - Subsidiary Ningbo Wanhua saw significant profit growth, while BorsodChem and battery materials are currently in a loss position [1] Strategic Developments - The company is accelerating the lightening of petrochemical raw materials and has launched multiple self-developed projects [1] - Wanhua Chemical is recognized as a leader in the domestic chemical industry, continuously innovating in technology and expanding its industrial chain in polyurethane, petrochemicals, fine chemicals, and new materials [1] Outlook - The company’s development trend is viewed positively, maintaining a "recommended" rating [1]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [6]. Core Views - The company reported a sales revenue of 90.914 billion yuan for H1 2025, a year-on-year decrease of 6.35%, and a net profit attributable to shareholders of 6.123 billion yuan, down 25.10% year-on-year [1]. - Despite the decline in revenue and profit, the company experienced growth in the sales volume of its main products, particularly in the polyurethane, petrochemical, and fine chemical sectors [2]. - The company has successfully launched several self-developed projects, which are expected to significantly reduce production costs and enhance profitability [4]. - The forecasted net profit for 2025-2027 is projected to be 12.187 billion yuan, 13.662 billion yuan, and 16.014 billion yuan, respectively, with corresponding price-to-earnings ratios of 16x, 14x, and 12x [5][4]. Summary by Sections Financial Performance - In H1 2025, the company achieved a net profit of 6.123 billion yuan, a decrease of 25.10% year-on-year, with a revenue of 90.914 billion yuan, down 6.35% year-on-year [1]. - The second quarter of 2025 saw a revenue of 47.834 billion yuan, a year-on-year decrease of 6.04% but an increase of 11.07% quarter-on-quarter [1]. Product Sales - The sales volume of polyurethane products reached 3.03 million tons in H1 2025, up 12.64% year-on-year, while petrochemical products sold 2.85 million tons, an increase of 3.64% year-on-year [2]. - In Q2 2025, the sales volume of fine chemicals and new materials surged by 29.35% year-on-year, totaling 1.19 million tons [2]. Subsidiary Performance - The subsidiary Ningbo Wanhua reported a revenue of 14.449 billion yuan, down 20.72% year-on-year, but its net profit increased by 34.33% to 2.344 billion yuan [3]. - Borsod Chem, another subsidiary, faced a net loss of 89 million yuan, a significant decline of 185.82% year-on-year [3]. Strategic Developments - The company has accelerated the lightening of petrochemical raw materials and successfully launched multiple self-developed projects, including a new ethylene unit and advancements in battery materials [4]. - The company is focusing on continuous technological innovation and industry chain layout in the fields of polyurethane, petrochemicals, fine chemicals, and new materials [4].