Core Viewpoint - Wanhui High-tech has signed an investment agreement for a functional polyvinyl alcohol (PVA) resin project, with a total planned investment of approximately 10 billion yuan, aiming to establish a production base with an annual output of 400,000 tons of ethylene-based functional PVA resin and downstream projects [1][2]. Investment Project Summary - The project will be constructed in two phases, with the first phase involving an investment of about 3.6 billion yuan to produce 200,000 tons/year of ethylene-based functional PVA resin, along with supporting facilities for 360,000 tons/year of vinyl acetate and 300,000 tons of methyl acetate [1]. - The second phase will require an investment of approximately 6.4 billion yuan, targeting the production of 400,000 tons/year of vinyl acetate and 200,000 tons/year of ethylene-based functional PVA resin, as well as downstream products [1]. - A new company, Jiangsu Wanhui New Materials Co., Ltd., will be established with a registered capital of 1 billion yuan, where Wanhui High-tech will hold 80% equity [1]. Industry Context - PVA is primarily used in coatings, adhesives, and films, with its biodegradable properties making it suitable for packaging and biomedical applications [2]. - China is the largest producer of PVA globally, with a production capacity of approximately 1.1 million tons, and is also the largest exporter, with exports expected to reach 210,200 tons in 2024, a year-on-year increase of about 14.3% [2][3]. Company Performance - For the first half of 2025, Wanhui High-tech reported a revenue of approximately 4.06 billion yuan, a year-on-year increase of 4.9%, and a net profit attributable to shareholders of approximately 256 million yuan, up 97.47% [5][6]. - The total production of PVA series products reached 152,710 tons, a year-on-year increase of 33.17%, while the sales volume of PVA was 125,486 tons, up 24.51% [6][8]. - The company has successfully developed a wide-width PVA optical film, with a production capacity of 7 million square meters per year, and plans to launch a new project for 20 million square meters of TFT polarizer PVA optical film [3][7].

【DT新材料】 获悉，8月15日， 皖维高新 发布公告， 公司与江苏滨海经济开发区管理委员会签署乙烯法功能性聚乙烯醇树脂项目建设投资协议，根 据协议： （1） 拟在滨海沿海工业园投资建设乙烯法功能性聚乙烯醇树脂生产基地。规划 总投资约100亿元，占地约1000亩， 总体规划年产40万吨乙烯法功能 性聚乙烯醇树脂及下游产业链项目 。 项目分两期建设， 一期项目建设期预计为18个月，投产后再 适时启动二期项目。其中， 一期 投资 约36亿元，建设20万吨/年乙烯法功能性聚乙烯醇树 脂项目，含配套建设的36万吨/年醋酸乙烯、30万吨醋酸甲酯装置 。 二期 投资 约64 亿元，建设40万吨/年醋酸乙烯、20万吨/年乙烯法功能性聚乙烯醇 树脂及PVA 下游产业链VAE乳液、可再分散性乳胶粉、PVB 树脂、PVB 胶片等项目。 （2） 拟 出资组建" 江苏皖维新材料有限责任公司 （暂定名，下称"皖维新材料"），注册资金10亿元人民币，位于江苏省盐城市滨海县滨海经济开发 区沿海工业园，其中， 皖维高新 和滨海投资，分别出资8亿和2亿，分别持80%和20%权益。皖维新材料将独立经营一期20万吨/年项目。 聚乙烯醇（PVA ） ...

Investment Rating - The investment rating for the company is maintained at "Buy" [1][4]. Core Views - The company has shown growth in PVA production and sales, with a significant increase in new material output. The Q2 profit exceeded expectations due to increased sales and favorable export profits [1][2]. - The company is expected to benefit from a favorable competitive landscape in the PVA market, with products like PVA optical films and automotive-grade PVB films entering a growth phase [1][3]. - The establishment of a new base in Jiangsu is anticipated to enhance market share, with plans for a 400,000-ton/year PVA production capacity and related projects [3]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 4.06 billion RMB, a year-on-year increase of 4.9%, and a net profit attributable to shareholders of 260 million RMB, up 97% year-on-year [1][2]. - The PVA sales volume increased by 25% to 125,000 tons, with revenue from PVA reaching 1.33 billion RMB, also a 25% increase [2]. - The gross profit margin improved by 1.25 percentage points to 14.5%, while the expense ratio decreased by 1.6 percentage points to 8.0% [2]. Product Development - The company’s PVA optical film production has stabilized at 7 million square meters, with sales up 121% year-on-year to 4.3 million square meters, generating revenue of 49 million RMB, a 101% increase [2]. - The automotive-grade PVB film segment saw a 60% increase in sales volume and a 77% increase in revenue, despite an overall decline in PVB film sales due to product restructuring [2]. Future Outlook - The company is projected to achieve net profits of 610 million RMB, 770 million RMB, and 890 million RMB for the years 2025 to 2027, respectively, with corresponding EPS of 0.29, 0.36, and 0.42 RMB [4][9]. - The target price for the company is set at 6.09 RMB, based on a 21x PE ratio for 2025 [4][6].

Investment Rating - The report maintains an "Accumulate" rating for the company [6][4]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 235-265 million RMB in the first half of 2025, representing a year-on-year increase of 81%-104% [1]. - The second quarter is projected to yield a net profit of 117-147 million RMB, reflecting a year-on-year growth of 42%-79% [1]. - The company benefits from a favorable competitive landscape in PVA and successful ramp-up of new materials such as PVA optical films [1]. Summary by Sections Financial Performance - The company anticipates a significant increase in net profit for H1 2025, with a forecast of 2.35-2.65 billion RMB, and a non-recurring net profit of 2.23-2.53 billion RMB, marking growth of 89%-115% year-on-year [1]. - For Q2 2025, the expected net profit is 1.17-1.47 billion RMB, with a non-recurring net profit of 1.06-1.36 billion RMB, indicating a year-on-year increase of 46%-87% [1]. Cost and Pricing Analysis - The average price of PVA in Q2 was reported at 11,038 RMB/ton, with a price difference from acetylene at 5,524 RMB/ton, showing a year-on-year decrease of 8% and 428 RMB/ton respectively [2]. - The cost side has improved significantly, with Q2 prices for coal, acetic acid, and acetylene showing declines of 25%, 20%, and 7% year-on-year [2]. Market Outlook - The report suggests that the trend of cost improvement for PVA may continue, supported by a favorable supply-demand balance and the absence of new domestic production capacity [3]. - The company is expected to increase its global market share in PVA, with exports rising by 13% year-on-year in the first five months of 2025 [3]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025-2027 is set at 530 million, 670 million, and 770 million RMB respectively, with corresponding EPS of 0.25, 0.32, and 0.37 RMB [4]. - The target price is maintained at 5.50 RMB, based on a 22x PE ratio for 2025 [4].

Group 1 - The People's Bank of China has increased the re-lending quota for technological innovation and technological transformation by 300 billion, bringing the total to 800 billion [1] - The Chongqing branch of the People's Bank of China is focusing on key enterprises and projects to promote the implementation of the re-lending policy [1][2] - The policy aims to enhance financial support for technological upgrades and high-quality development in the region [5] Group 2 - Chuanwei Chemical, the largest natural gas fine chemical and new materials enterprise in China, is the third-largest enterprise in terms of technical transformation funding needs in the Chongqing selection list [2] - The Chongqing branch of the People's Bank of China is actively engaging with financial institutions to understand the financing needs of enterprises and provide tailored service plans [5] - As of June 6, 2025, Chuanwei Chemical has secured a total credit of 1.305 billion from various banks for four projects, with contracts signed amounting to 1.187 billion [5]