Yantai Wanhua: Rapid Expansion Of Capacity

Yantai Wanhua's annual performance has maintained a growth rate of over 50%. With the further expansion of the company's MDI capacity in the future, diversified products have made breakthroughs. The Changjiang Securities researcher is optimistic about the long-term development trend of the company. It is estimated that the company's EPS in 08 and 09 years will be 1.296 yuan and 1.631 yuan respectively, so as to maintain its investment rating of "recommended".

The company's production and operation is in good condition. The main business revenue comes from the revenue of pure MDI and aggregated MDI products. In the 07 year, Ningbo Wanhua's "16 to 24" project was successfully completed, achieving 337 thousand and 400 tons of MDI sales and achieving a net profit of 1 billion 481 million yuan, an increase of 71.56% over the same period last year.

The biggest demand growth for MDI will come from the building insulation market. MDI enterprises will accelerate their expansion to the domestic market. Under the background of accelerating global MDI capacity expansion to domestic market, the average MDI price of 08 years will probably be lower than that of last year, and the company's next few years is still MDI.

The total capacity of Ningbo Wanhua polyammonia Co., Ltd. after the completion of the technical pformation project of the company holding subsidiary company reached 240 thousand tons. Meanwhile, the Wanhua two phase project in 2007 was approved by the NDRC in 2007. At present, the Wanhua two phase project in Ningbo is progressing smoothly. It is expected that the project will be put into operation in the first quarter of 2010. The two phase of the company's Ningbo project may expand to 600 thousand tons of capacity through technological pformation, and the total capacity of Ningbo MDI will reach 900 thousand tons in the future.

Changjiang Securities expects the total MDI capacity of the company to reach 1 million 500 thousand tons in 2015, and will rank among the top three MDI in the world.

The company intends to acquire Donggang electrification, which will ensure raw material supply and improve the upstream industry chain. The acquisition of Guangdong Rong Wei is likely to form a complete polyvinyl acetate rigid foam industrial chain in the future.