Wanhua Chemical (600309) In-depth Report 4: Cut into the Specialty Nylon Field

Wanhua Chemical (600309) In-depth Report 4: Cut into the Specialty Nylon Field

The core point of view is to deploy the nylon 12 project and cut into the 苏州夜网论坛 specialty nylon field. In 2019, Wanhua plans to invest 25.

500 million US dollars to build 4 tungsten carbide nylon 12 production capacity.

The raw materials for Wanhua’s production of nylon 12 are mainly the by-products of the company’s 100 ethylene resin project, 1,3-butadiene and purchased liquid sulfur.

Butadiene undergoes 7 reaction units including CDT (cyclododecatriene) unit, oxidation unit, and dehydrogenation unit to obtain nylon 12 product.

Nylon 12 marks the start of the company’s entry into specialty nylon.

  The growth rate of China’s specialty nylon market is fast, with nylon 12 bearing the brunt. According to Grand View Research, the global specialty nylon market size in 2018 was 23.

6 billion US dollars, according to “Polaris Market Research” predicts that by 2026 the global specialty nylon market size will reach 36.

US $ 0 billion, with a compound annual average from 2018 to 2026 of 5.

3%.

  The growth rate of China’s demand for special nylon is significantly higher than the global one, and the market potential is huge.

In 2018, China’s demand for special nylon reached 32 cases. From 2011 to 2018, China’s annual demand for special nylon reached a composite of 14.
.

4%, it is expected to maintain a growth of more than 10% in the future.

  According to Market Research Future statistics, the global market size of nylon 12 in 2018 was 10.

7 billion US dollars, according to Coherent Market Insights forecast, the global nylon 12 market size will grow to 15 by 2024.

100 million US dollars, with an annual compound strength of 5.

9%, the growth rate is higher than the growth rate of special nylon market.

  Wanhua is the first domestic company to produce nylon 12. At present, the global manufacturers of nylon 12 are mainly Swiss EMS, Germany Evonik, France Arkema, Japan UBE.

China, as the third largest consumer market for nylon 12, has no domestic producers and relies entirely on imports.

With the production of 4mm nylon 12 capacity, Wanhua is expected to become the first nylon 12 manufacturer in China, breaking through the foreign technology monopoly.

  Investment suggestion: We estimate the company’s net profit attributable to its mothers to be 103 in 2019-2021.

04, 126.

63, 157.

8.3 billion, with EPS of 3.

28, 4.

03, 5.

03, corresponding to PE are 13.

90, 11.

31, 9.

08, maintain the “strongly recommended” level.

  Risk Warning: New material market development is less than expected; product prices fluctuate significantly; project construction is less than expected; raw material price risk; technical risk; company safety and environmental protection risk