Wanhua Chemical Group Co.Ltd(600309) (600309)
event:
On December 16, 2021, Wanhua Chemical Group Co.Ltd(600309) 850000 T / a polyether polyol expansion project’s draft environmental impact report was publicized. The construction content of the project mainly includes the construction of a new 850000 T / a 2# polyether polyol unit, including soft foam polyether, pop polyether, differentiated polyether, supporting public works, storage and transportation works, environmental protection works, etc.
On December 16, 2021, Wanhua Chemical Group Co.Ltd(600309) 25000 tons of special isocyanate type high-end thermoplastic polyurethane elastomer (TPU) technical transformation project environmental impact report was publicized. The project is a technical transformation project, changing the approved 33000 tons / year MDI TPU production line of TPU unit to the production line of 25000 tons / year special isocyanate high-end TPU products and 8000 tons / year MDI ordinary TPU products.
Key investment points:
The polyether production capacity will be expanded again, and it will make steady progress towards the world’s leading polyether enterprise
Wanhua Chemical Group Co.Ltd(600309) the existing MDI capacity is 2.65 million tons / year, accounting for about 27% of the world; The capacity of TDI is 650000 T / A. Polyether polyol is another key raw material in polyurethane industry, which has strong synergistic effect with isocyanate. Relying on the company’s competitive advantages such as globalization, leading technology, highly integrated industrial chain and highly coordinated product marketing channels, the company has developed into a core supplier in downstream industries such as home appliances, home furnishings, automobiles and coatings, a differentiated solution provider trusted by customers, and a leading polyether polyol supplier in the Chinese market and the world. Wanhua Chemical Group Co.Ltd(600309) has significant scientific research, technical advantages and rich production and sales experience in the field of combined polyether. With the increasing concentration of the industry, fully relying on the upstream and downstream industrial chain resources of the company, giving play to the strategic synergy with MDI and TDI, we are committed to becoming a leading enterprise in China’s Polyether industry in 2020 and a leading enterprise in the global polyether industry in 2025.
By the end of 2020, the production capacity of Wanhua polyether project is 605000 T / A. The EIA of the 500000 T / a polyether polyol expansion project was approved by Yantai Environmental Protection Bureau in YHS [2019] No. 10 document on March 25, 2019. The project is constructed in two phases. The construction scale of phase I is 195000 T / a polyether polyol unit, including 145000 T / a soft bubble unit and 50000 T / a hard bubble unit; Put into trial operation in August and September 2020 respectively; The 305000 T / a polyether polyol unit of phase II project, including 225000 T / a soft foam unit and 80000 T / a hard foam unit, is under construction. According to the EIA announcement, the company will build another 850000 T / a polyether polyol unit. After the project is put into operation, the company’s polyether production capacity will be further expanded, and the company will make steady progress towards the world’s leading polyether enterprise.
TPU technology is transformed into high-end products, and the added value of the industrial chain is further improved
Thermoplastic polyurethane elastomer (TPU) is a kind of polyurethane product, which is characterized by fusibility and solubility, can be formed by a variety of processing methods, can be processed and reused, and can be automatically degraded into water and carbon dioxide in nature without causing any pollution to the environment, which fully meets the environmental protection requirements of modern mankind. Now TPU has been widely used in shoe materials, films, automobile parts, industrial injection molding parts, sealing rings and melt spinning Spandex, geophysical cables, wires and cables, urinary catheters, artificial blood vessels and other industrial and medical and health fields.
Wanhua Chemical Group Co.Ltd(600309) conducted a comprehensive analysis and research according to market analysis and prediction, risk and competitiveness. According to the raw material advantages of TPU production in the enterprise, some production lines in TPU unit were technically transformed to produce ADI and TDI high-end TPU products with higher added value. ADI TPU has excellent yellowing resistance. In recent years, the demand for paint protective film, automotive interior, consumer electronics, hot melt adhesive, glass sandwich and other fields has increased rapidly; TDI TPU is also in mature use in the field of special adhesives, and has a certain growth potential.
According to the EIA, the company plans to transform the raw material supply unit of the existing production line without changing the capacity of relevant production lines. After the transformation, the relevant production lines can produce ADI and TDI high-end TPU products, taking into account the production of MDI ordinary TPU products. The key raw materials ADI and TDI isocyanates required for the production of high-end TPU are produced by Wanhua, with stable supply, which can strengthen the Wanhua Chemical Group Co.Ltd(600309) industrial chain and further enhance the added value of existing products.
Profit forecast and investment rating: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 25.713 billion, 26.634 billion and 28.528 billion respectively, corresponding to PE of 12.4, 11.9 and 11.1 respectively, maintaining the “buy” rating.
Risk warning: economic downturn; The project construction is not as expected; The market fluctuates greatly; New products are not as expected; Environmental protection and safety production; Competition in the same industry has intensified.
