Wanhua Chemical's Performance Declines by 12.67%! The Hidden Truth Behind an 11.35% Revenue Growth

Recently, Wanhua Chemical Group Co., Ltd. released a notice detailing the company's operating results for the first three quarters of 2024. The announcement shows that the company achieved significant revenue results during this period. Specifically, it achieved 147.604 billion yuan of operating revenue, an increase of 11.35% compared with the same period last year. However, in terms of net profit, the company suffered a certain degree of decline, the specific value of 11.093 billion yuan, a year-on-year decrease of 12.67%.

Breaking down further to the quarterly data, the third quarter's performance was equally striking. In the quarter, Wanhua's revenue reached 50.537 billion yuan, up 12.48 percent year on year. However, there was a significant decline in net profit, which was 2.919 billion yuan, down 29.41% year on year.

In terms of specific business segments, Wanhua Chemical's polyurethane series products performed well in the first three quarters of 2024, achieving sales revenue of 54.245 billion yuan. Petrochemical products and LPG trade also performed well, with sales revenue reaching 61.978 billion yuan. In addition, fine chemicals and new material products also achieved 19.999 billion yuan of sales revenue.

Wanhua Chemical said in the announcement that although the prices of some of its products fell year on year during the reporting period, the prices of major raw materials continued to remain high. In addition, during the third quarter, the company's major installations in Yantai and Europe underwent intensive maintenance, which together contributed to the year-on-year decline in profit.

According to the disclosure information of Wanhua Chemical, in the third quarter of 2024, the average price of pure benzene, the company's main raw material, was 8,442 yuan/ton, up 13.06% year on year; The average price of 5,000 kcal thermal coal was 752 yuan/ton, down 1.96% year on year; The average price of propane CP was $592 / ton, up 25.16% year on year; Butane CP prices averaged $577 / ton, up 24.35% year on year.

In terms of price, in the third quarter of 2024, the downstream demand performance of polyurethane business was weak, resulting in a downward trend in the price of some products. Specifically, the demand for pure MDI products was sluggish, the inventory of downstream finished products was high, and the competition in the industry intensified, with the average market price of approximately RMB19,500 / tonne in the third quarter; The demand for aggregated MDI products improved slightly, and the export market remained stable, with an average market price of approximately RMB17,800 / tonne in the third quarter; The demand in the TDI market is weak, and the average market price in the third quarter is about 13,500 yuan/ton.

In addition, the price of petrochemical products in the third quarter was lower than the same period last year, and the profit of the industrial chain also contracted accordingly. Specifically, the price of propylene in Shandong was 6926 yuan/ton, up 1.73% year on year; Shandong n-butanol was 7,444 yuan/ton, down 12.45% year on year; The price of Shandong acrylic acid was 6,250 yuan/ton, up 1.66% year on year; Shandong butyl acrylate price was 8,936 yuan/ton, down 6.09% year on year; The price of Shandong NPG hydrogenation was 10,383 yuan/ton, up 10.73% year on year; The price of MTBE in Shandong was 6,302 yuan/ton, down 17.83% year on year; The price of East China LLDPE film grade was 8,301 yuan/ton, up 0.8% year on year; The price of East China ethylene process PVC was 5,776 yuan/ton, down 8.39% year on year.