Group 1: China Shipbuilding - China Shipbuilding will resume trading on August 19, 2025, following a merger with China National Heavy Industry Group through a share exchange [1] - The company has a market capitalization exceeding 170 billion yuan and is expected to achieve a net profit of 2.8 billion to 3.1 billion yuan for the first half of 2025, representing a year-on-year growth of 98.25% to 119.49% [1] - The company focuses on its core business, with improved production efficiency and a favorable overall development trend in the shipbuilding industry, leading to performance growth [1] Group 2: TDI Market - TDI prices have surged, with a benchmark price of 16,066.67 yuan per ton as of August 18, 2025, reflecting a cumulative increase of 40.94% since the beginning of the second half of the year [3][5] - The price range for TDI in 2025 is projected to be between 10,400 yuan and 16,766.67 yuan per ton, with a maximum increase of 61.22% [3] - The recent price increase is attributed to a reduction in production capacity due to incidents at major production facilities, including a fire at Covestro and maintenance at Wanhua Chemical's subsidiary [5] Group 3: TDI-Related Companies - The A-share market has four main companies involved in TDI production: Wanhua Chemical, Cangzhou Dahua, Beihua Co., and Hanjin Technology [6] - Wanhua Chemical is the leading domestic TDI producer, with a total capacity of 147,000 tons per year after the completion of a new project [6] - Cangzhou Dahua maintains stable operations with an annual TDI capacity of 160,000 tons, while Beihua Co. does not produce TDI but is involved in TDI trading through a subsidiary [6][7]

Core Viewpoint - The price of TDI (Toluene Diisocyanate) has been continuously rising, with a cumulative increase of 40.94% since the beginning of the second half of the year, attributed to a significant reduction in production capacity [1] Industry Summary - As of August 18, the benchmark price of TDI reached 16,066.67 CNY per ton [1] - The East China TDI market is currently stable, characterized by a strong willingness to maintain prices from the supply side and a tight supply situation [1] - The TDI market is expected to continue a strong consolidation trend in the short term [1] Company Summary - There are four main publicly listed companies in the A-share market with TDI-related production capacity: Wanhua Chemical, Cangzhou Dahua, Beihua Chemical, and Hanjin Technology [1] - Wanhua Chemical is identified as the domestic leader in TDI production [1]

Investment Rating - The industry investment rating is maintained as "Recommended" due to favorable fundamentals and expected outperformance of the industry index against the benchmark index [2][7]. Core Insights - The TDI industry is experiencing significant supply disruptions due to a fire at Covestro's German plant, which has led to a production halt of 300,000 tons/year TDI. Additionally, Wanhua Chemical's Hungarian plant is undergoing maintenance, affecting 250,000 tons/year TDI capacity [1][5]. - European TDI supply is expected to be severely impacted, with the region accounting for approximately 16% of global TDI capacity. The combined capacity of the affected plants in Europe is 550,000 tons [5]. - Nearly 50% of global TDI production capacity is anticipated to be affected, with domestic maintenance also contributing to supply tightness. By August, domestic maintenance impacts are expected to reach 1.01 million tons, representing 30% of global capacity [5]. - TDI prices have begun to rebound from historical lows, increasing from 11,000 CNY/ton to 15,925 CNY/ton, a rise of over 40%. Historical peaks for TDI prices have exceeded 50,000 CNY/ton [5]. - Strong attention is recommended for Cangzhou Dahua and Wanhua Chemical, with profit increases projected for each 1,000 CNY/ton rise in TDI prices, amounting to 830 million CNY for Wanhua and 120 million CNY for Cangzhou [5]. Industry Overview - The TDI industry is characterized by a global capacity of approximately 3.4 million tons, with over 70% of production concentrated in Asia, primarily in China [5]. - The report highlights the ongoing trend of overseas production capacity contraction, particularly in Europe and the US, due to high production costs and plant closures [5].

Core Insights - The domestic TDI (Toluene Diisocyanate) market continues to rise, with a significant increase of over 1000 yuan per ton on July 21 [1] - The average price of TDI reached 15,900 yuan per ton as of July 21, marking a 6.79% increase compared to the previous working day [1] - TDI prices have risen for five consecutive working days in July, with a total increase of over 3,900 yuan per ton this month [1] - Year-to-date, TDI prices have increased by 23%, and there is a year-on-year increase of 20% [1]

Group 1 - The average price of TDI in the domestic market reached 14,100 yuan per ton on July 17, 2023, reflecting an increase of 613 yuan per ton, or 4.56%, compared to July 16, 2023 [1] - Since the beginning of July, TDI prices have risen by over 2,000 yuan per ton [1] - The price surge is attributed to domestic and international equipment failures or maintenance, coupled with strong overseas demand, leading to a continuous tight supply of TDI [1] Group 2 - Some leading domestic companies have either suspended sales or raised their quotations for TDI products recently [1]