wanhua(600309) 华泰证券·2024-08-12 15:18Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 106.02 [1][4][6] Core Views - The company reported a revenue of RMB 971 billion for H1 2024, representing a year-on-year increase of 10.8%, while the net profit attributable to the parent company was RMB 82 billion, down 4.6% year-on-year [1] - The polyurethane sales volume increased by 14% year-on-year to 2.69 million tons, driven by new production capacity in Fujian [2] - The company is entering a new growth cycle with several projects set to commence production in 2024, including significant expansions in polyurethane and petrochemical segments [4] Summary by Sections Financial Performance - H1 2024 revenue was RMB 971 billion, with a net profit of RMB 82 billion, reflecting a year-on-year decrease of 4.6% [1] - The company plans to distribute a cash dividend of RMB 5.20 per 10 shares [1] - The projected net profits for 2024-2026 are RMB 175 billion, RMB 206 billion, and RMB 233 billion, respectively, with corresponding EPS of RMB 5.58, RMB 6.56, and RMB 7.43 [1] Market Dynamics - The polyurethane segment saw a sales volume increase of 14% year-on-year, with revenue rising to RMB 355 billion, despite a slight decline in gross margin due to high raw material prices [2] - The average prices for MDI, TDI, and polyether products showed mixed trends, with MDI prices increasing by 8% year-on-year [2] Growth Prospects - The company has several projects in the pipeline, including new capacities in MDI and TDI, which are expected to contribute to future revenue growth [4] - The total balance of ongoing construction projects is RMB 598 billion, indicating significant future growth potential [4]