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    Home > Coatings News > Paints and Coatings Market > In the first half of the year, the net profit of Wanhua chemical dropped by more than 40% and the price of MDI dropped significantly

    In the first half of the year, the net profit of Wanhua chemical dropped by more than 40% and the price of MDI dropped significantly

    • Last Update: 2019-08-26
    • Source: Internet
    • Author: User
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    On the evening of August 20, Wanhua chemical published the semi annual report In the first half of the year, the revenue was 31.539 billion yuan, a year-on-year decrease of 15.35%; the net profit was 5.621 billion yuan, a year-on-year decrease of 46.49%; and the basic earnings per share was 1.79 yuan Wanhua chemical said that the profitability of the company's products in the first half of the year was affected by factors such as the slowdown of global economic development, the decline of main product prices and the increase of export costs Polyurethane series (MDI, TDI, polyol) are the main revenue sources of Wanhua chemical, especially MDI At present, the quality and unit consumption of multiple MDI devices of the company have reached the international advanced level, and it is one of the most important MDI suppliers in the world In the first half of this year, the revenue was 16.484 billion yuan, accounting for more than half of the revenue The revenue of petrochemical series, fine chemicals and new materials series was 7.513 billion yuan and 3.238 billion yuan respectively In the first half of 2019, the price of MDI dropped significantly compared with that of 2018 The price of pure MDI dropped by RMB 5000 or 6000 per ton compared with that of 2018, and the price of aggregate MDI dropped even more In January this year, for example, the aggregate MDI price of distribution was 12500 yuan / ton, compared with 28800 yuan / ton in the same period last year, down more than half In August, the listing price of pure MDI announced by Wanhua was 20700 yuan / ton, 700 yuan / ton higher than that in July, but it is still the second low price month since 2019 It can be said that compared with 2018, MDI prices have declined significantly this year In addition, the company's petrochemical industry is not very prosperous Due to the decrease of MDI price, the first quarter report of Wanhua Chemical Co., Ltd was not very ideal The first quarter revenue was 15.952 billion yuan, down 8.3% year on year, and the net profit was 2.796 billion yuan, down 45.98% year on year The periodic fluctuation of the diversified chemical industry has been puzzling the enterprises in the industry Wanhua chemical started with MDI, and the fluctuation of single product had a greater impact on the company before In order to cope with the cycle fluctuation, Wanhua has arranged Petrochemical series, fine chemistry and new material series products in recent years These two plates have become an important source of revenue and profit for Wanhua, and also become a buffer zone for Wanhua when the MDI cycle is underestimated In the long run, 2017 and 2018 are the good years for Wanhua chemical, with revenue of 53.123 billion yuan and 60.621 billion yuan, respectively, and attributable non net profit of 10.71 billion yuan and 10.035 billion yuan In 2016, the two figures are 30.1 billion yuan and 3.676 billion yuan, respectively In 2018, the company's MDI gross profit margin was 50.03%, which was 5.11% lower than that in 2017 In that year, the company's petrochemical series, fine chemistry and new material series products plus other products totaled 28.91 billion yuan Although the gross profit margin was lower, it almost caught up with the revenue of 30.952 billion yuan of polyurethane series, becoming an important part of the company's performance growth In the first half of this year, two new sectors accounted for about half of the revenue Influenced by crude oil price and terminal demand, petrochemical products of the company showed a downward trend in the first half of the year The average price of propylene in Shandong is 7308 yuan / ton, down 10.35% compared with the same period last year; the average price of propylene oxide in Shandong is 9825 yuan / ton, down 16.82% compared with the same period last year In the second half of 2019, Wanhua chemical will continue to strengthen production management, actively respond to the adverse impact of external environment changes on product sales, actively study the market development trend, formulate reasonable sales strategies, and ensure the realization of sales volume and profits The company will continue to carry out plant process optimization to improve plant operation efficiency and reduce production costs Meanwhile, it will strengthen R & D investment in independent development projects and develop new technologies and products It is worth noting that although Wanhua chemical's revenue and net profit decreased, the company's R & D expenses still maintained a high growth rate, with 833 million yuan in the first half of the year, an increase of 45.14% year on year In addition, the company's management expenses are decreasing, with 693 million yuan in the first half of the year, down 10.44 percentage points year on year.
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