Wanhua Chemical issued its 2020 annual results forecast, which expects to achieve net profit attributable to shareholders of listed companies of 9.6 billion yuan to 10.1 billion yuan in 2020, a decrease of 530 million yuan to basically flat compared with the same period last year, and a decrease of 5% to basically flat year-on-year.
net profit attributable to shareholders of listed companies in the first three quarters of 2020 was RMB5,349 million, down 32.28% YoY. Based on this calculation, Wanhua Chemical's net profit in the fourth quarter of 2020 was between RMB4,251 million and RMB4,751 million, contributing more than 40% of its full-year net profit
. At the end of the third quarter, with the rapid improvement of downstream demand in the global chemical industry, rapid growth in some areas, the company's main product sales increased, sales prices rose, the fourth quarter net profit attributable to shareholders of listed companies is expected to increase by 91% to 113% YoY.
10:20 a.m. on January 5, Wanhua Chemical reached a total market value of 300.1 billion yuan, becoming the first listed company in Shandong Province to break the 300 billion yuan mark. By the close of trading on January 6, Wanhua Chemical's shares had hit a new high, closing at 98.42 yuan, up 0.82 percent, with a market capitalization of 309.014 billion yuan. Since March last year, Wanhua Chemical's share price has started to move higher. The share price is now up about 2.7 times from its March 2020 low.
past three years, Wanhua Chemical's net profit has remained at 10 billion yuan. But with the end of the chemical industry boom cycle, the company's profitability will fall sharply in 2019. Wanhua Chemical was able to maintain a 25.44 percent decline in profits.
chemical polyurethane plate includes MDI and TDI and other varieties. Wanhua Chemical is currently the world's largest manufacturer of MDI, this product is mainly used in the production of polyurethane materials, can be used in automotive, home appliances and other industries. In the domestic MDI market, Wanhua Chemical's market share exceeds 40%. Polymer MDI and pure MDI are fist products of Wanhua Chemical Polyurethane Plate. The polyurethane sector is one of Wanhua Chemical's three major business sectors, accounting for more than 40% of its total revenue.
in 2019, low prices for chemical products such as MDI led to an 18% decline in revenue and a 9 percentage point reduction in gross margin in the Wanhua Chemical Polyurethane segment, which was the main factor in the company's decline in performance.
2020, Wanhua Chemical has raised the listing price of MDI for four consecutive months, and the current price is up nearly 80% from the year's low.
as of December 2020, Wanhua Chemical Polymer MDI in the domestic distribution and direct marketing market listing price reached 25,000 yuan per ton, pure MDI listing price of 28,000 yuan per ton. The price level of aggregateDIs is close to their February 2018 market highs, while pure MDI listings are at their highest levels since October 2018.
to continued high MDI prices, Wanhua Chemical's results have improved significantly in the third quarter of 2020. The company reported revenue of 18.3 billion yuan in the third quarter, up 17% from the second quarter, and net profit of 2.5 billion yuan, up 72% from the second quarter.
2021 MDI offer, which was recently disclosed by Wanhua Chemical, has shown that the prices of each product have been significantly reduced. Starting in January 2021, Wanhua Chemical China polymer MDI distribution market listing price of 20500 yuan / ton (down 4500 yuan / ton from December 2020 price), direct marketing market listing price 2050 0 yuan/tonne (down 4500 yuan/tonne from December 2020 price) and 24,000 yuan/tonne of pure MDI listing price (down 4000 yuan/tonne from December 2020 price).