Zhejiang Merchants Securities: Wanhua Chemical's new project is progressing orderly and is expected to show high growth in the future. We maintain a "buy" rating.

According to the research report of Zheshang Securities, Wanhua Chemical achieved a net profit attributable to shareholders of 13.033 billion yuan in 2024, a year-on-year decrease of 22.49%; short-term profits are under pressure, and the chemical industry leader focuses on high-quality development. In the first quarter of 2025, the company achieved a net profit attributable to shareholders of 3.082 billion yuan, an increase of 1.142 billion yuan compared to the previous quarter. The gross profit increased by 0.40 billion yuan, and overall operations were relatively stable; the impairment loss on assets decreased by 0.678 billion yuan compared to the previous quarter, non-operating expenses decreased by 0.732 billion yuan, and income tax increased by 0.405 billion yuan. After the impairment and scrapping of some investment projects, the company's performance has been restored. Looking ahead, as the company transitions from external expansion to internal and intensive growth, from high-speed expansion to high-quality development, and from management to operation, the core competitiveness of the chemical industry leader will continue to strengthen. Wanhua Chemical is a global polyurethane and chemical industry leader, with its main products MDI and TDI having high technological barriers. At the same time, the company continues to drive innovation through research and development, with new projects progressing in an orderly manner, showing high growth prospects for the future. We maintain a "buy" rating.