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In February 28th, Wanhua chemical announced that the company will increase its MDI listing price in China since March 2019.

It is reported that this is the second increase in the price of MDI products after 2019. On the same day, Wanhua chemical released its annual report in 2018 with a net profit of over 15 billion 900 million. With the completion of the overall listing, Wanhua chemical surpassed BASF and became a "MDI" in the global field.

1. MDI two continues to rise.

Wanhua Chemical shares climbed all the way

It is understood that since March 2019, the aggregate MDI distribution market in China has been listed at 15200 yuan / ton (2000 yuan / ton higher than February price), and the listing price of the direct selling market is 15500 yuan / ton (2000 yuan / ton higher than February price); the pure MDI listing price is 24700 yuan / ton (1000 yuan / ton higher than February price).

In the previous January 30th, Wanhua chemical announced that the listing price of China's MDI aggregate market in February will be raised by 700 yuan / ton compared with the January price.

In fact, from the perspective of market feedback, the price of aggregated MDI has risen considerably since February.

In the capital market, the price of Wanhua chemical company has risen all the way. Since 2019, Wanhua chemical has risen from 27.99 yuan / share to 40.87 yuan / share, or 46%, and its market value has reached 128 billion 300 million yuan, increasing by more than 50 billion yuan. It has become the highest A share listed company in Shandong.

According to the business data, in February 27th, the reference price of aggregated MDI was 14650 yuan / ton, while the reference price of aggregated MDI in February 1st was 12900 yuan / ton, or 13.57%.

Huang Haixia, an information analyst at Zhuo Chuang, said that in the last week of February, domestic aggregate MDI prices had risen sharply. Domestic mainstream talks in 14500 yuan / ton to 15500 yuan / ton, the average price rose 1200 yuan / ton compared with the previous week, or 8.86%. Earlier this week, BASF announced in advance that the listing price of aggregated MDI will increase by 1400 yuan / ton in March. After that, Wanhua chemical also announced a price increase of 2000 yuan / ton, which once again ignites the market.

About raising prices, Wanhua chemical related people said that the company's first price increase was relatively small. The price increase was mainly due to warmer weather and a revival of downstream operations, which led to an increase in demand.

"The price of MDI fell to the end of December in the second half of last year, so the price of MDI in 2019 was not high, and there was room for price rise.

In addition, by the end of 2018, there was less stock in the lower reaches and insufficient inventory. In 2019, the normal recovery began, and procurement of MDI became a rigid demand, pushing prices up to a certain extent. Huang Haixia said: "MDI is currently an oligarchic structure, and MDI production enterprises have strong voice in pricing. According to market supply and demand and equipment maintenance plan of MDI production enterprises, MDI price trend is still more optimistic in the coming period.

Two, Wanhua chemical 2018 earnings report

You can earn tens of millions of dollars every day.

The largest MDI manufacturing enterprise, Wanhua chemical group Limited by Share Ltd (hereinafter referred to as "Wanhua chemical") recently released its 2018 annual performance bulletin. During the reporting period, the company achieved operating income of 60 billion 621 million yuan, an increase of 14.11% compared with the same period last year, and the net profit attributable to the shares of listed companies was 15 billion 977 million yuan, down 4.71% compared with the same period last year.

Wanhua chemical said that during the reporting period, the sales scale of various business sectors had increased, but as the price of the polyurethane plate product market began to fall in the second half of the year, the operating performance of the whole year was slightly down.

According to the results of the report, the polyurethane products are still the main source of company profits. In the first half of 2018, the income accounted for 56%, and the gross profit ratio was 79%. The MDI price fluctuation had a great impact on the company's performance.

Analysts believe that the price of aggregated MDI has greatly affected the performance of the company. It is understood that in the two quarter of 2018, the domestic aggregate MDI price opened the downstream channel. Last year, the mainstream price of aggregated MDI in Shandong was 19184 yuan / ton, 28.6% lower than the 2017 average price. In 2018, the average gross profit of MDI was 6172 yuan / ton, which was 54.5% lower than the gross profit level in 2017.

After entering the four quarter, due to the weakening of downstream demand and the impact of the international oil price slump, prices quickly entered the downstream channel. The average price of Shandong in the fourth quarter dropped to 12567 yuan / ton, a sharp decline of 57.1% compared with the same period last year, and the lowest price dropped to 11200 yuan / ton. At the same time, the gross profit level of the industry dropped by 99.1%, and the whole industry basically entered the profit and loss balance.

As Wanhua chemical has MDI capacity of 1 million 800 thousand tons, the decline in MDI prices and the decline in profitability are the main reasons for Wanhua chemical company's performance decline in 2018. But at the same time, Wanhua chemical company's net profit in 2018 only declined by 4.7%, which fully demonstrated the excellent cost control ability of the company, and the rapid development of petrochemical business and new material business segment in 2018.

Three, crowned the global MDI "one brother"

The future of Wanhua chemical

Wanhua chemical absorption and merger of Yantai Wanhua Chemical Co., Ltd. and related party spanactions have been completed. In the future, Wanhua chemical holding 100%BC shares, Wanhua Ningbo 25.5% and Wanhua chlor alkali power 8% will be injected into the listed companies to achieve the overall market of Wanhua's chemical assets and solve the same industry competition problem that Wanhua industry has acquired after the acquisition of BC chemistry in 2011.

Hungary BC is the largest manufacturer of MDI and TDI in central and Eastern Europe. It has MDI capacity of 300 thousand tons and TDI capacity of 250 thousand tons. It covers Europe, Middle East and Africa, and is the eighth largest polyurethane manufacturer in the world.

After BC is incorporated into the listed company, Wanhua chemical will become the world's largest MDI supplier (2 million 100 thousand tons of capacity), and will achieve the layout of the three major markets in Asia, Europe and the Americas.

Meanwhile, in the fourth quarter of last year, the TDI project of Wanhua chemical industry, the next 1 million tons of ethylene projects, MMA/PMMA and many other new material projects will further open up the growth space of the company and continuously enhance the performance level of Wanhua chemical industry.

In February 14th, Wanhua chemical absorbed the report of Wanhua chemical company. After nearly a year, Wanhua chemical absorbed 52 billion 200 million yuan worth of Wanhua chemical industry. With the completion of the absorption and merger, Wanhua chemical has also been listed as a whole.

According to the plan, the spanaction will issue 1 billion 716 million shares in accordance with 30.43 yuan / share, and absorb Wanhua chemical company with a combined price of 52 billion 200 million yuan. After the completion of the spanaction, Wanhua chemical 1 billion 310 million shares held by Wanhua chemical company were cancelled, and 406 million shares were actually added. After the merger was completed, Wanhua chemical total capital stock was 3 billion 140 million shares.

Through this absorption and merger, Wanhua chemical has surpassed BASF in the capacity of 2 million 100 thousand tons per year, becoming the world's largest producer of MDI (capacity calculation). At the same time, it also completely solved the potential competition between BC and Wanhua chemical company.

According to public information, Wanhua chemical is a new global chemical material company. Its business covers MDI, TDI, polyether polyols and other polyurethane industrial clusters, acrylic acid ester and propylene oxide, and other petrochemical industrial clusters, water PUD, PA emulsion, TPU, ADI series and other functional chemicals and materials industrial clusters. The service industries mainly include: living home, sports and leisure, automobile spanportation, construction industry, electronic and electrical appliances and so on. The actual control of the company is made by the Yantai SASAC.

Wanhua chemical has many advantages, such as capacity, technology and cost, and has risen to be the world leader in MDI. After continuous technological spanformation and new construction, expansion and expansion, the company's MDI capacity expanded from 10 thousand tons in 1994 to the current 1 million 800 thousand tons, plus Hungary's BC 300 thousand tons capacity, the company's capacity reached 2 million 100 thousand tons, ranking first in the world.

Liao Zengtai, chairman of Wanhua chemical, has said that after the completion of the overall listing, Wanhua will become a truly mixed ownership public company, laying a solid institutional foundation for the long-term development of the company.

In addition to MDI, the company's diversification has been further improved, which is conducive to improving the company's industrial chain and further enhancing its overall competitiveness. In January 9th, Wanhua chemical announced that the company's 50 thousand tons / year MMA (methyl methacrylate) project and 80 thousand tons / year PMMA (polymethyl methacrylate) project were completed and put into operation. In addition, the two phase of the 130 thousand ton PC project will be completed and put into operation, and the 1 million ton ethylene project is under construction.

The goal of Wanhua chemistry is not only current achievements. "Our goal is to enter the 20 largest global chemical industry in five years, and finally to make Wanhua a world class five hundred enterprise with the world's first-class competitiveness." Liao Zengtai said.