According to the CICC research report, Wanhua Chemical's 2024 and 1Q25 results are in line with market expectations. Considering that MDI can be exported to the US through BC in Hungary, and that exports of refrigerators and freezers to the US account for about 10-11% of China's production, it is expected that the impact of trade tariffs on MDI business is manageable. Domestic ethane procurement costs have risen sharply after considering trade tariffs, but the company's ethylene phase II project can increase the amount of naphtha and butane to produce ethylene. At the same time, the company mainly procures propane and butane from the Middle East. It is expected that the company's PDH installations will still have a competitive advantage among domestic peers. Maintaining a “outperforming the industry” rating.

According to the CICC research report, Wanhua Chemical's 2024 and 1Q25 results are in line with market expectations. Considering that MDI can be exported to the US through BC in Hungary, and that exports of refrigerators and freezers to the US account for about 10-11% of China's production, it is expected that the impact of trade tariffs on MDI business is manageable. Domestic ethane procurement costs have risen sharply after considering trade tariffs, but the company's ethylene phase II project can increase the amount of naphtha and butane to produce ethylene. At the same time, the company mainly procures propane and butane from the Middle East. It is expected that the company's PDH installations will still have a competitive advantage among domestic peers. Maintaining a “outperforming the industry” rating.