Shandong’s first company with a market value of over 400 billion yuan was “born”!
At 9:37 am on February 4, Wanhua Chemical’s stock price hit 127.40 yuan per share. Based on a total share capital of 3.140 billion shares, Wanhua Chemical’s total market value reached 400.036 billion yuan. In less than a month, the market value of Wanhua Chemical (600309.SH) has increased by 100 billion yuan and has successfully exceeded the 400 billion yuan mark!
Wanhua Chemical’s annual report card exceeded market expectations. On that day, Wanhua Chemical exceeded 100 yuan for the first time in intraday trading, and the company’s total market value crossed the 300 billion threshold; the stock price continued to rise by 8% the next day, and once hit the daily limit during the day.
Since entering 2021, Wanhua Chemical’s stock price has continued to hit record highs. After the face value exceeded 100 yuan, it continued to rise. The latest closing price was 123.19 yuan. The company’s total market value reached 386.8 billion yuan. Another daily limit is inevitable. Breaking through the 400 billion mark.
In fact, since 2016, Wanhua Chemical’s stock price has been on a tear, soaring from a low of 4.63 yuan to a high of 126.37 yuan (before the restoration of rights). In about five years, the stock price has increased by more than 21 times, which is the highest in A-shares. A well-deserved leader in the chemical industry.
This is the first listed company in Shandong with a market value of more than 400 billion yuan, and it is also the second largest company in market value among the 395 listed companies in Shenyin & Wanguo’s China chemical industry. Sinopec, the second largest company.
At intraday trading, Wanhua Chemical’s stock price reached a maximum of 130.40 yuan per share, with the total market value reaching 409.456 billion yuan. As of the close of trading, Wanhua Chemical’s stock price was fixed at 130 yuan per share, with a total market value of 408.2 billion yuan. Shandong Finance reported that at the close of trading on December 31, 2020, Wanhua Chemical’s total market value was 285.866 billion yuan, which means that in the first month of 2021, Wanhua Chemical’s market value increased by 120 billion yuan; As of now, there are only 6 A-share listed companies in Shandong with a total market value of more than 100 billion yuan. This shows the astonishing extent of Wanhua Chemical’s market value growth.
Looking further ahead, in late March 2020, Wanhua Chemical’s total market value was at its lowest, less than 120 billion yuan. In less than a year, the market value of Wanhua Chemical has more than doubled, breaking through the 200 billion, 300 billion, and 400 billion yuan levels. What are the secrets behind this?
The recent continuous rise of Wanhua Chemical stems from the pursuit of industry leading companies by market conglomerate funds, but in the final analysis, it is the blue chip stocks that are in the leading position in the industry that are recognized by the market.
Wanhua Chemical is known as the “Huawei” in the petrochemical industry
Wanhua Chemical pointed out in its 2020 semi-annual report that the company has now become a global A leading MDI supplier and service provider, it is also a global mainstream supplier of TDI, ADI, polyether, TPU and other products. Wanhua Chemical is currently the world’s largest MDI manufacturer, with an annual production capacity of 2.1 million tons and accounting for approximately 30% of the global market share. MDI includes two categories: polymeric MDI and pure MDI. The former is mainly used in refrigerators, freezers, automobiles, construction and other industries, while the latter is used in artificial leather, adhesives, coatings and other fields.
MDI is the flagship product of Wanhua Chemical’s polyurethane segment. As one of Wanhua Chemical’s three main businesses, the polyurethane segment accounts for more than 40% of the company’s total revenue.
Since August 2020, Wanhua Chemical has raised the listing price of MDI for four consecutive months. At the end of the year, the price increased by nearly 80% from the low point during the year. As of December last year, the listing price of Wanhua Chemical Polymer MDI in the domestic distribution and direct sales markets reached 25,000 yuan per ton.
But in January and February this year, the listing price fell 18% to 20,500 yuan per ton. In the first half of last year, the company’s net profit was 2.8 billion yuan, down about 50% year-on-year. Wanhua Chemical attributed this to the decline in both volume and price of the company’s core product MDI due to the impact of the COVID-19 epidemic. Benefiting from the continued rise in MDI prices in the second half of the year, Wanhua Chemical’s performance has improved significantly since the third quarter of that year.
The performance forecast disclosed by Wanhua Chemical in January this year shows that its full-year net profit in 2020 is expected to be 9.6 billion to 10.1 billion yuan, slightly lower than the net profit of 10.13 billion yuan in 2019. Since 2017, Wanhua Chemical’s net profit has remained above RMB 10 billion for four consecutive years.
Wanhua Chemical said that as the downstream demand of the global chemical industry improved at the end of the third quarter, demand in some regions grew rapidly, and its main product sales increased and sales prices increased. In the fourth quarter of last year, Wanhua Chemical’s net profit attributable to shareholders of listed companies is expected to increase by 91%-113% year-on-year. The company’s previously released financial data showed that its net profit in the fourth quarter of 2019 was 2.23 billion yuan.
In 2019, among the 325 listed companies in the basic chemical industry on the Shanghai and Shenzhen stock exchanges, Wanhua Chemical ranked first in attributable net profit, and firmly occupied the top spot among listed companies in Shandong Province with a market value of nearly 300 billion.
Looking back on the whole year of 2020, Wanhua Chemical’s performance can be described as “starting low but moving high”. From January to September 2020, Wanhua Chemical achieved revenue of 49.2 billion yuan, a slight increase of 1.43% year-on-year; attributable net profit was 5.35 billion yuan, a year-on-year decrease of 32.28%.
It seems that Wanhua Chemical mainly relied on its performance in the fourth quarter of 2020 to turn things around. The company’s attributable net profit in the quarter was 4.26 billion yuan to 4.75 billion yuan. Yuan, a year-on-year increase of 91% to 113%, which is also the company’s historical returnIt is the quarter with the highest net profit.
Wanhua Chemical’s performance in the fourth quarter of 2020 exploded, mainly due to the rapid recovery of downstream demand in the fourth quarter and the increase in volume and price of the company’s main products.
On the basis of the three integrated chemical industrial parks in Yantai, Ningbo and Hungary, the construction of Wanhua Fujian Industrial Park and Sichuan Meishan Industrial Park has begun, and we are committed to developing into a first-class chemical industry with global operations. New Materials Company. From a performance perspective, Wanhua Chemical has been the most profitable listed company in Shandong for many years.
After the Spring Festival, as the peak sales season of MDI gradually approaches, product prices are expected to usher in a new round of increase. The overall industry boom is expected to enter an upward cycle, and the market share of leading companies is expected to continue to increase, thereby promoting the improvement of company performance. .
Wanhua Chemical holds MDI’s core resources tightly with one hand, and continues to develop new materials and create new profit growth points with the other hand. The company’s future prospects are promising, no wonder the stock price has skyrocketed. </p
