Wanhua 2016 Results
PUdaily, Shanghai-The financial report from Wanhua Chemical showed on February, 14 that the annual business income of 2016 is RMB 30.1 billion, up 54.42% year on year; operating profit is RMB 5.65 billion, up 100.73% compared with last year; the total profit is RMB 5.653 billion, up 91.34% year on yeaer; the net profit attributable to shareholders of listed companies is RMB 3.68 billion, up 128.60% over the same period last year. The basic earning is RMB 1.70 per share, up 129.73% year on year; the rate of return on equity based on weighted average is 28.12%, increased by 13.45% from a year earlier.
The announcement shows that the growth is mainly due to the commissioning of petrochemical plants in Yantai industrial park during reporting period, the improvement in the profitability of MDI benefiting from rising prices and the development of other new businesses.
Industrial insiders think that Wanhua Chemical is one of the few companies that masters international cutting-edge manufacturing technology and has management advantages in the China’s chemical industry. In 2016, the company successively increases the listed price of MDI under ordered global supply pattern. What’s more, the price in the traditional off-season still remains strong and the gross profit rises largely. Since June, 2016, the company’s petrochemical plants run at full capacity, and Adipic Acid and Propylene Oxide products maintain good profits and gradually make great contributions for the company’s profit increase. At the same time, the company’s six new materials and the specialty chemicals divisions also achieve good growth in business operation.
In February, 2017, the listed market price of Wanhua MDI increases by RMB 2,000/ton compared with last month, according to latest data. “The MDI market is expected to stay at high levels in the future because some plants reduce operation under the circumstance of equipment maintenance, resulting in tight supply. Due to good competition pattern and prospect of development, the company will hopefully keep the profits. Besides, the company has formed six business divisions gradually which is now growing rapidly, and will boost new growth,”a financial institution remarked.