Wanhua Chemical (600309): Grasp the Development Direction of Industrial Structure

Wanhua Chemical (600309): Grasp the Development Direction of Industrial Structure

Event: The National Development and Reform Commission released the “Industrial Structure Adjustment Guidance Catalogue (2019 Edition)” on November 6, 2019.

The directory covers nearly fifty fields such as petrochemicals and chemical industry. Its main role is to accelerate the development of a modern economic system, promote the development of industries, and meet the needs of people’s beautiful lives.

Effective from January 1, 2020.

The “Industrial Structure Adjustment Guidance Catalogue (2011 edition) (Amendment)” was repealed at the same time.

Investment summary: The company’s multiple processes / devices are in line with the industrial structure adjustment guidance directory, reflecting the company’s foresight and execution in the chemical industry.

Co-oxidation of propylene oxide promoted the company’s polyurethane sector fusion development.

20 concentration / year and above co-oxidation ethylene oxide supplementation device and the previous catalogue replacement are still listed as encouraged, the essence lies in the advanced nature of the process technology, and the chlorohydrin epoxy resin can avoid serious environmental pollution (itsThe process is restricted), and the self-sufficiency rate of the main products and co-products still needs to be improved 天津夜网 (85% in the first nine months of PO2019 and 74% in styrene).

The company currently has 24 / year PO / MTBE devices (commissioned in 2015), and independently developed 30/65 stage PO / SM technology (currently only Reps ol, Lyondell and Shell own the technology, only Repsol is transferred, and the remaining twoConsidering joint ventures only, Wanhua’s device is currently under construction (100 vinyl resin projects in the body, which is expected to start production in the second half of 2020).

The breakthrough in the development of the company’s epoxy resin decomposition process highlights the company’s consistent R & D and technological transformation capabilities. The transformation also helps the company to further develop the field of polyether polyols downstream of PO. The company’s MDI product has obvious advantages and 武汉夜网论坛 the excellent combination of polyether and MDISales methods and formula customization services increase the added value of products and increase the stickiness of downstream customers. The synergy between products is obvious.

Rare earth isocyanates create the company’s distinctive new material products.

The development and application of the production technology of the initial-grade isocyanate and the substitution of the previous version of the catalog are still encouraged.

Adult-based isocyanates (ADI) include HDI, HMDI, IPDI, XDI, HTDI, etc., where HDI accounts for more than 60%, and the former product accounts for nearly 90%.

ADI has better mechanical properties, chemical stability and light and weather resistance than traditional MDI / TDI. It is mainly used as water-based coatings, adhesives, curing agents and other products, and its price is significantly higher than MDI products.

The product market is integrated by Evonik, Covestro, BASF and other international giants except the company.

The company’s HDI, HMDI, and IPDI projects in Yantai and Ningbo Parks in 2012?
Production started in 2017, with a total capacity of nearly 10 tons. The ADI product series takes full advantage of the company’s isocyanate technology advantages, syngas, chlorine, aniline and auxiliary equipment in the park to reduce production costs and create special products for the company’s new material sector.

Bisphenol A provides raw material guarantee for the company’s PC equipment.

10 cations / year and above ion exchange method bisphenol A device and the previous version listed in the encouraged category.

The company’s existing 24-ton ion-exchange bisphenol A project is in the design stage. Its commissioning will provide raw materials for the company’s 7 + 13 PC capacity. In the future, it can also be replaced by upstream phenol to expand the raw materials into largerFor benzene and brown, the two-way extension of upstream and downstream will continue to reduce the risk of spread fluctuations.

Nylon 12 is intended to break foreign monopolies.

The development and production of new polyamides such as long carbon chain nylon and high temperature resistant nylon, as well as listed on the previous edition, are still encouraged.

The company’s 4 polycarbonate nylon 12 project is in the early design stage. Its main raw material is the butadiene product of the ethylene project. The company avoided bulk rubber products and chose to rely entirely on nylon 12 imported from abroad.With the company’s strong R & D and technology transformation capabilities, the company will also continue to develop in the field of new chemical materials.

The company’s comprehensive competitive advantage is obvious.

R & D and technological transformation capabilities are enhanced; parks and models of integration; ethylene industry chain extension; the company’s strategic, R & D, management, production and other advantages will continue to promote the company’s expansion in expansion and help the company’s performance to rise steadily.

Investment advice: What do we expect the company to do in 2019?
The EPS in 2021 will be 3.

12/3.

82/5.

06 yuan, the corresponding PE is 14 respectively.

38/11.

76/8.

86. Maintain “Buy” rating.

Risk reminder: the risk of severe fluctuations in crude oil prices, the risk that the progress of new projects is less than expected, and the risk that product demand is less than expected

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