Yantai Wanhua: The Future Will Continue To Grow Steadily.

Wei Tao, a researcher at Guotai Junan, thinks that in the first quarter of this year, Yantai's Wanhua production and marketing were in good condition, and it was basically not affected by the negative effects of downstream industries.

With the growth of MDI capacity, the growth of the company will decline in the next two years, but its security will be greatly improved.

Taking into account the high tech barriers of MDI products, the excellent management level of the company and the strong ability of self hematopoiesis, we maintain the rating of the company's "overweight".

Forecast Ltd EPS reached 1.31 yuan and 1.59 yuan respectively in 2008 and 2009.

In the first quarter of this year, the growth of refrigerators and freezers in the downstream industries of MDI slowed down, and some tanning and shoemaking enterprises pferred capacity, leading to the slow arrival of MDI peak season.

However, according to the survey, the reality is not too pessimistic. The demand for MDI industry is still growing steadily, and it is expected that the market will turn warmer next month.

In the first quarter, Yantai's Wanhua production and marketing were in good condition, and the product inventory was normal, and product sales were basically not affected by the weakness of downstream industries.

The first phase of the company's Yantai and Ningbo facilities will be expanded according to the plan, and the two phase of Ningbo is progressing smoothly.

At the same time, in order to support sales after the increase in production, the company is adjusting and improving the global marketing network.

After considering the geographical location, cultural tradition and other factors, the global market is divided into four war zones for targeted market development and channel construction.

Researcher analysis, with the international and domestic MDI capacity growth, market supply will gradually be sufficient.

Two or three years from now, MDI will move from "noble" chemicals to the "middle class", and the scarcity will not be as high as in previous years.

Lower cost is an important means for manufacturers to get higher profits and stronger competitiveness.

As far as Yantai Wanhua is concerned, by 2010, after the completion of the two phase of the company's Ningbo project, Ningbo base will become the largest scale, the highest level of integration and the lowest cost MDI production base.