Company News
March 16, 2022
Wanhua Overview
WANHUA CHEMICAL(600309)：OPTIMISTIC ABOUT VISIBLE GROWTH POTENTIAL AND MEDIUM-AND LONG-TERM INVESTMENT VALUE
类别：公司 机构：中国国际金融股份有限公司 研究员：Xiongwei JIA/Qichao ZHAO/Xiaofeng QIU/Di WU 日期：2022-03-16
2021 earnings in line with our expectations
Wanhua Chemical announced its 2021 earnings: Revenue grew 98.2% YoY to Rmb145.5bn, net profit attributable to shareholders rose 145.5% YoY to Rmb24.65bn, and recurring net profit grew 155.2% YoY to Rmb24.36bn, in line with our forecasts and consensus. The company’s net operating cash flow rose 65.7% YoY to Rmb27.92bn and its R&D spending grew 55.1% YoY to Rmb3.17bn in 2021. The company plans to pay a dividend of Rmb2.5/sh.
In 2021, Wanhua’s revenue from its polyurethane business segment increased by 72.75% YoY to Rmb60.49bn and the capacity utilization rate of this business segment was 100%. The company’s production and sales volume of polyurethane products grew 37.4% and 32.7% YoY to 4.01mnt and 3.89mnt, mainly driven by technological upgrading for methylene diphenyl diisocyanate (MDI) production facilities in Yantai and growing sales volume of polyether polyol products. Rising prices of products such as MDI boosted the company’s earnings, and the gross profit margin of the company’s polyurethane products increased by 0.61ppt YoY to 35.07%. The company’s revenue from petrochemical products increased by 132.5% YoY to Rmb61.41bn, and production and sales volume of the company’s self-produced products rose 79.5% and 74.8% YoY to 4mnt and 3.9mnt, mainly because the company’s ethylene production facilities were put into operation. The gross profit margin of the company’s petrochemical products increased by 9.45ppt YoY to 17.09%, mainly driven by the sharp increase in prices of petrochemical products and changes in product mix after the ethylene production facilities were put into operation. The company’s revenue from fine chemicals and new materials rose 94.2% YoY to Rmb15.46bn, mainly driven by growing sales volumes of products such as ADI, waterborne resins and TPU, and rising prices of products. The company’s sales volume of fine chemicals and new materials grew 37% YoY to 0.76mnt with gross profit margin rising 2.31ppt YoY to 21.25%.
Wanhua’s subsidiary in Ningbo generated net profit of Rmb6.6bn (up 43% YoY) in 2021 and Rmb3.78bn in 2H21. Wanhua’s subsidiary in Yantai generated net profit of Rmb5.17bn in 2021 and Rmb2.37bn in 2H21. Wanhua’s subsidiary BorsodChem generated net profit of Rmb4.78bn (up 184% YoY) in 2021 and Rmb1.65bn in 2H21.
Trends to watch
Visible growth potential; clear medium- and long-term investment value. Due to rising prices of commodities such as crude oil and coal, we think earnings of Wanhua’s petrochemical and polyurethane businesses will face some pressure in the near term. However, we think there is no need to be pessimistic about full-year earnings of the company’s polyurethane business, as the capacity utilization rate of this business was 100% in 2021 and there is roughly no new production capacity for MDI and TDI products across the world this year. We expect the company’s 40,000t/year nylon-12 project and 0.48mnt/year bisphenol A project to be put into production and generate profits in 2022. We think the company’s newly-built 0.4mnt/year MDI production capacity in Fujian and 0.6mnt/year MDI production capacity in Ningbo are likely to be gradually put into operation after 2023. Meanwhile, the company plans to build a 1.2mnt/year ethylene project (second phase), a 0.4mnt/year propylene oxide project, a 0.2mnt/year maleic anhydride project, an MMA integration project, a 0.14mnt/year PC project, and vitamin A and vitamin E projects. We expect new projects to boost the company’s profits over 2023-2025. Considering the company’s current share price, we believe that pessimistic expectations for short-term earnings have been priced in. Given the company’s visible growth potential in the next several years, we are optimistic about the company’s investment value in the medium and long term.
Financials and valuation
We keep 2022 and 2023 earnings forecasts unchanged. The stock is trading at 10.7x 2022e and 8.6x 2023e P/E. We maintain OUTPERFORM rating and target price of Rmb135 (18.0x 2022e and 14.5x 2023e P/E), offering 68% upside.
Risks
Lower-than-expected prices for products such as MDI; sharp rise in raw material prices; disappointing progress of new projects.
http://stock.finance.sina.com.cn/stock/go.php/vReport_Show/kind/search/rptid/700734359558/index.phtml
March 15, 2022
Olin Suspending European Epoxy Resin Production
Olin to suspend European epoxy resin production
Mar. 14, 2022 7:47 PM ETOlin Corporation (OLN)By: Carl Surran, SA News Editor
Olin (NYSE:OLN) -1.2% post-market after saying it is temporarily curtailing integrated epoxy production at its facility in Stade, Germany, citing a poor quality market and record high natural gas and electrical power costs in Europe.
Olin says it has seen weaker demand than expected for epoxy resin in Europe during Q4, exacerbated by the uncertainty following Russia’s invasion of Ukraine, and it is “impractical” to operate the epoxy resin facility at less than 50% operating rates.
The company now expects Q1 epoxy sales to decrease by $35M-$40M from Q4 2021, but it continues to expect Q1 total results in the Chemicals segment to be similar to Q4 2021 levels.
Olin shares gained 6% in Monday’s trading after KeyBanc issued an upgrade, seeing spiking global energy prices as favorable to the company in the short- and long-term.
March 15, 2022
Olin Suspending European Epoxy Resin Production
Olin to suspend European epoxy resin production
Mar. 14, 2022 7:47 PM ETOlin Corporation (OLN)By: Carl Surran, SA News Editor
Olin (NYSE:OLN) -1.2% post-market after saying it is temporarily curtailing integrated epoxy production at its facility in Stade, Germany, citing a poor quality market and record high natural gas and electrical power costs in Europe.
Olin says it has seen weaker demand than expected for epoxy resin in Europe during Q4, exacerbated by the uncertainty following Russia’s invasion of Ukraine, and it is “impractical” to operate the epoxy resin facility at less than 50% operating rates.
The company now expects Q1 epoxy sales to decrease by $35M-$40M from Q4 2021, but it continues to expect Q1 total results in the Chemicals segment to be similar to Q4 2021 levels.
Olin shares gained 6% in Monday’s trading after KeyBanc issued an upgrade, seeing spiking global energy prices as favorable to the company in the short- and long-term.
March 10, 2022
Huntsman TPU Investments
Huntsman Celebrates Surface Solutions Investments at Elastomers Production Plant in Ringwood, Illinois RINGWOOD, Illinois – Global specialty chemical manufacturer Huntsman hosted a formal event at its polyurethane elastomers production facility in Ringwood, Illinois, last week to mark the completion of a series of strategic investments in its thermoplastic polyurethane (TPU) manufacturing capabilities for end applications in paint protection film and security glazing.
Huntsman is one of the longest-standing producers of TPUs for protective film applications. For more than 45 years, the business has been making high performance TPUs that form the basis of paint protection films, surface protection systems and security glazing technologies.
Over the last two years Huntsman has constructed a purpose-built TPU manufacturing facility for protective film technologies at its Ringwood site – fitting it out with cutting edge automation equipment. This investment has helped increase the output of products within Huntsman’s renowned KRYSTALGRAN® and KRYSTALFLEX® TPU portfolios, which set the gold standard for protective film systems worldwide.
During the event, which was attended by associates and federal, state, and local political leaders, Steen Weien Hansen, Vice President of Global Automotive and Elastomers for Huntsman Polyurethanes and Alexis Bortoluzzi, Senior Director, Global Elastomers for Huntsman Polyurethanes began with welcoming speeches to guests. They emphasized Huntsman’s strategic position as a flagship supplier in the TPU market in addition to the upgrade of the Ringwood site poising Huntsman Polyurethanes for growth with the industry. Steen Weien Hansen then formally commissioned the facility by cutting a ribbon.
Special guests in attendance included Village of Ringwood President, Rick Mack; McHenry County Board Chairman, Mike Buehler; State Senator Craig Wilcox; and Greg Claus, Deputy Chief of Staff for U.S. Congressman Brad Schneider. Guests were given a tour of the Ringwood facility and were able to see Huntsman’s paint protection film technology in action. The business arranged for a 2022 McLaren 765LT Spider to be on display at the plant. The vehicle was lent on behalf of Hamilton Collection, a charity-based organization with a fleet of super cars available for showing. The surface of the show vehicle was preserved with paint protection film – demonstrating the protective properties of the technology, which can stop vehicle paint work from getting chipped and damaged by road debris.
Commenting, Trent Shidaker, Global Director of Marketing at Huntsman for Elastomers, said: “Demand for surface protection solutions, and specifically for paint protection films, has accelerated in the last few years. Once solely employed in the luxury vehicle market, films are now used to protect mainstream vehicle makes and models from chips, scuffs, scrapes and UV weathering. It’s an exciting time to be in this sector and our recent investments reflect our commitment to the market and our customers. This event was a chance to thank the team involved in the construction, installation, and commissioning of our new surface solutions assets at Ringwood.”
Huntsman KRYSTALGRAN® TPU products are trusted by some of the world’s biggest paint protection film producers and renowned for their exceptional pliability, product quality and consistency, and UV resistance. KRYSTALGRAN® TPU products, which are sold as pellets, are used to enhance paint protection in the automotive industry but are also used in electronic film applications; in signage projects; and to protect the leading edge of helicopter and wind turbine blades. KRYSTALFLEX® films, which are the benchmark in interlayer laminating applications within the glass industry, are typically used to strengthen anti-ballistic glass used in military vehicles, banks and government buildings.
For more information about Huntsman’s surface solutions capabilities, please contact: Joanna_Marzec@huntsman.com.
March 10, 2022
Huntsman TPU Investments
Huntsman Celebrates Surface Solutions Investments at Elastomers Production Plant in Ringwood, Illinois RINGWOOD, Illinois – Global specialty chemical manufacturer Huntsman hosted a formal event at its polyurethane elastomers production facility in Ringwood, Illinois, last week to mark the completion of a series of strategic investments in its thermoplastic polyurethane (TPU) manufacturing capabilities for end applications in paint protection film and security glazing.
Huntsman is one of the longest-standing producers of TPUs for protective film applications. For more than 45 years, the business has been making high performance TPUs that form the basis of paint protection films, surface protection systems and security glazing technologies.
Over the last two years Huntsman has constructed a purpose-built TPU manufacturing facility for protective film technologies at its Ringwood site – fitting it out with cutting edge automation equipment. This investment has helped increase the output of products within Huntsman’s renowned KRYSTALGRAN® and KRYSTALFLEX® TPU portfolios, which set the gold standard for protective film systems worldwide.
During the event, which was attended by associates and federal, state, and local political leaders, Steen Weien Hansen, Vice President of Global Automotive and Elastomers for Huntsman Polyurethanes and Alexis Bortoluzzi, Senior Director, Global Elastomers for Huntsman Polyurethanes began with welcoming speeches to guests. They emphasized Huntsman’s strategic position as a flagship supplier in the TPU market in addition to the upgrade of the Ringwood site poising Huntsman Polyurethanes for growth with the industry. Steen Weien Hansen then formally commissioned the facility by cutting a ribbon.
Special guests in attendance included Village of Ringwood President, Rick Mack; McHenry County Board Chairman, Mike Buehler; State Senator Craig Wilcox; and Greg Claus, Deputy Chief of Staff for U.S. Congressman Brad Schneider. Guests were given a tour of the Ringwood facility and were able to see Huntsman’s paint protection film technology in action. The business arranged for a 2022 McLaren 765LT Spider to be on display at the plant. The vehicle was lent on behalf of Hamilton Collection, a charity-based organization with a fleet of super cars available for showing. The surface of the show vehicle was preserved with paint protection film – demonstrating the protective properties of the technology, which can stop vehicle paint work from getting chipped and damaged by road debris.
Commenting, Trent Shidaker, Global Director of Marketing at Huntsman for Elastomers, said: “Demand for surface protection solutions, and specifically for paint protection films, has accelerated in the last few years. Once solely employed in the luxury vehicle market, films are now used to protect mainstream vehicle makes and models from chips, scuffs, scrapes and UV weathering. It’s an exciting time to be in this sector and our recent investments reflect our commitment to the market and our customers. This event was a chance to thank the team involved in the construction, installation, and commissioning of our new surface solutions assets at Ringwood.”
Huntsman KRYSTALGRAN® TPU products are trusted by some of the world’s biggest paint protection film producers and renowned for their exceptional pliability, product quality and consistency, and UV resistance. KRYSTALGRAN® TPU products, which are sold as pellets, are used to enhance paint protection in the automotive industry but are also used in electronic film applications; in signage projects; and to protect the leading edge of helicopter and wind turbine blades. KRYSTALFLEX® films, which are the benchmark in interlayer laminating applications within the glass industry, are typically used to strengthen anti-ballistic glass used in military vehicles, banks and government buildings.
For more information about Huntsman’s surface solutions capabilities, please contact: Joanna_Marzec@huntsman.com.
Everchem Updates Archive 
Sign Up for Email Updates