Yantai Wanhua: MDI Overlord'S R & D Strength Is Enhanced

Yantai Wanhua company is mainly engaged in the research, development, production and sale of MDI isocyanate series, aromatic polyamine series products and thermoplastic polyurethane elastomers series products, and is the largest MDI manufacturing enterprise in the Asia Pacific region.

At present, the company has two sets of MDI devices, with a capacity of 280 thousand tons / year, and the quality and unit consumption of the products reach the international advanced level.

One of the main points of investment: domestic MDI overlord company is one of the five global MDI producers with independent intellectual property rights. At present, Yantai has 120 thousand tons of capacity, and the Ningbo base has 160 thousand tons of capacity.

The company is a MDI manufacturer with a domestic market share of over 40%, and its products have successfully entered the international market.

In 2006, the company's export aggregated MDI of about 60 thousand tons, and overseas income accounted for 16% of total revenue.

Over the past five years, China's MDI consumption has increased by an average of 23.4%. In the next five years, China's MDI market will continue to grow at a faster rate and surpass that of the United States as the world's largest MDI consumer.

The key point of investment is two: stable growth curve MBO the three quarter report shows that in 2007 1~9, the main business income was 5 billion 865 million yuan, an increase of 50.71% over the same period last year. Net profit was 1 billion 99 million yuan, an increase of 87.41% over the same period, and 0.66 yuan per share.

The main source of profit growth is the increase in MDI production and sales and the rise in MDI prices.

In addition, the Wanxin investment and Wancheng investment managed by the management of the company achieve managerial shareholding through the curve of the controlling shareholders of the participating companies, which makes the management and the interests of the listed companies closely related, and ensures the stable development of the company.

Three of the investment points: the two phase MDI project is approved by the two phase of the expansion capacity company, the 300 thousand phase of the two phase MDI project, the investment 2 billion 500 million, and the investment amount of 10000 tons are nearly 100 million yuan, and the production efficiency will continue to improve with the independent development and production technology.

The implementation of matching projects such as aniline and gas making is conducive to improving the industrial chain and reducing costs.

The two phase of the project will begin to play an important role in 2010. With the continued expansion of the first phase of the Yantai and Ningbo projects, it is estimated that the MDI capacity of Yantai Wanhua (33.76,0.37,1.11%) will reach 390 thousand, 450 thousand and 750 thousand tons in 2007-2009 years, ranking among the world's leading MDI suppliers.

Four of the investment points: 211 million 300 thousand tax rebate and enhanced R & D strength, the company received a total of 211 million 300 thousand tax rebates in 2006, which means that the actual tax rate of the company has been around 15% for 06 years.

According to the company's capital stock, it is equivalent to the thickening of 2007 and 2008 earnings per share of 0.13 yuan.

As the tax refund can only be used for R & D, improve the speed of development of new products, is conducive to enhancing the company's competitive strength.

From the two tier market, after the stock price has been eliminated, it has been doing the box movement. Recently, the share price has recovered. With the stabilization of the stock market, the stock price still has a certain rising space.

Note: MDI is one of the most important raw materials for the preparation of polyurethane. Polyurethane has the dual advantages of rubber and plastics, especially in terms of heat insulation, sound insulation, wear resistance, oil resistance, elasticity and flexibility. It has the advantages that other synthetic materials can not compare with, and is widely used in chemical industry, light industry, textile, construction, household appliances, building materials, pportation, aerospace and other fields.