The TDI Plant Of Wanhua Chemical Yantai Industrial Park Is Resumed, And The Next 800 Thousand Years Will Increase By 800 Thousand Tons.

The world's largest MDI manufacturing enterprise, Wanhua chemical group, Limited by Share Ltd (hereinafter referred to as "Wanhua chemical") announced in the evening of June 3rd that the 300 thousand tons / year TDI (toluene diisocyanate) device of the Yantai Industrial Park was started to stop and repair in May 6th. The overhaul has ended and the normal production is resumed. The MMA and PMMA devices will be announced separately after the overhaul is finished.

Insiders say that MDI is an important isocyanate and is one of the core raw materials of the polyurethane industry chain.

Relying on independent innovation technology, Wanhua chemical develops MDI single set production capacity from 40 thousand tons to 1 million 100 thousand tons, achieving a breakthrough in single capacity.

The upgrading of a single set of production has largely reduced the MDI's cost of investment alone.

On the other hand, Wanhua chemical has realized the integration of MDI production through a series of technical pformation and matching construction, especially realizing the complete self-sufficiency of aniline in raw materials, and further reducing the production cost.

GF Securities analyst Guo Min believes that the MDI device needs to be servicing for a long time every year, with an average maintenance time of at least 40 days. That is to say, the limit of capacity start up rate is 89%. At the same time, because most of the MDI devices are built in a relatively early time, it is easy to cause obstacles due to the high load operation.

Since October 2016, the supply of MDI has been fluctuating frequently due to factors such as overhauling of global MDI manufacturers and force majeure.

Thus, the supply and demand of global MDI will become tense, and the price of MDI will continue to uplink.

In addition to the above MDI price volatility period, MDI prices in other years are mainly affected by seasonal factors and so on.

Over the past 2011-2015 years, domestic MDI capacity has been concentrated, resulting in a gradual deterioration in supply and demand. MDI prices and profitability have also declined significantly.

Over the past 2015-2017 years, the supply side of MDI has been incrementally limited. Under the steady growth of demand, the industry has started to operate at a higher level, and the MDI has ushered in the business cycle.

In the next three years, domestic MDI production capacity is expected to rapidly expand to 4 million 220 thousand tons / year.

The most important increment is from Wanhua chemical, and Wanhua chemical plan relies on the new generation of MDI manufacturing technology (a single set of capacity of 1 million 100 thousand tons / year). In the next 3 years, the capacity will increase by 800 thousand tons (44%).

As the only enterprise in China to have independent intellectual property rights of MDI manufacturing technology, Wanhua chemical started from the earliest 10 thousand tons MDI production plant, and gradually expanded MDI capacity through technological pformation and expansion, new capacity production and merger. At present, it has formed 2 million 100 thousand tons of MDI capacity and has become the leading MDI in the world.

With the breakthrough of Wanhua Chemical Technology in MDI production, Wanhua's two domestic production bases have a pformation plan. The capacity after pformation is 1 million 500 thousand tons and 1 million 100 thousand tons respectively. At the same time, Wanhua chemical plans to build a new production base in the United States, with a planned capacity of 400 thousand tons.

At present, Wanhua chemical has formed a MDI based product structure, which is accelerating the development of petrochemical series and specialty chemicals.

In 2018, Wanhua income polyurethane accounted for 51%, petrochemical plate accounted for 31%, special chemicals accounted for 9%, profit composition, polyurethane, petrochemical plate and special chemical Maori accounted for 76%, 9%, 9%.

The future petrochemical sector's revenue and profit growth rate will benefit from the production capacity, and it is expected to achieve rapid growth. However, Pu is still the main profitable sector of Wanhua chemical.

According to public information, Wanhua chemical was founded in 1998. Its predecessor was Yantai Wanhua polyurethane Limited by Share Ltd. It was listed on the Shanghai Stock Exchange in January 2001.

Wanhua chemical is the only factory in China that has mastered MDI production technology. Its MDI capacity has also grown from 10 thousand tons in 1994 to the world's largest 2 million 100 thousand tons. In 2018, it became the world's leading MDI industry after its absorption and merger.

In 2018, Wanhua chemical business income reached 60 billion 621 million yuan, an increase of 14.11% over the same period. The net profit attributable to shareholders of listed companies was 10 billion 610 million yuan, down 4.71% compared with the same period last year; the basic earnings per share were 3.88 yuan, down 5.13% compared to the same period last year.

As of December 31, 2018, the net assets of Wanhua chemical belonging to shareholders of listed companies were 33 billion 779 million yuan, an increase of 23.82% compared with the end of last year, liabilities totaled 37 billion 662 million yuan, and net cash flows from operating activities amounted to 19 billion 257 million yuan, up 79.85% from the end of last year.

In the first quarter of 2019, Wanhua chemical business income reached 15 billion 950 million yuan, down 8.3% compared with the same period last year. The net profit attributable to shareholders of listed companies was 2 billion 790 million yuan, down 45.9% compared with the same period last year. Net profit of 2 billion 420 million yuan, which was 49.1% lower than that of the listed companies, was 0.89 yuan per share.