Wanhua Chemical Group Co Ltd

Wanhua Chemical released its 2026 interim report, with net profit attributable to the parent company of 10.063 billion yuan, up 64.35% from the same period last year. Total operating revenue was 119.316 billion yuan, up 31.26% year-on-year, ranking first among peer companies that have disclosed results. Net cash inflow from operating activities was 11.784 billion yuan, up 11.93% year-on-year, marking a second consecutive year of growth. The company's latest gross margin was 17.08%, up 3.24 percentage points from the same period last year, achieving growth for three consecutive quarters.

On the evening of August 25, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Wanhua Chemical's subsidiary, BorsodChem in Hungary, has completed the shutdown maintenance of its integrated MDI and TDI facilities and resumed normal production. CICC has been approved to publicly issue corporate bonds to professional investors with a total face value not exceeding 80 billion yuan. Wus Printed Circuit reported first-half net profit of 2.923 billion yuan, up 73.72 percent year on year. Ouke Precision Cutting Tools reported first-half net profit of 371 million yuan, up 47,734.24 percent year on year. Hangzhou Cable reported first-half net profit of 393 million yuan, up 938.67 percent year on year. Yahua Group reported first-half net profit of 1.216 billion yuan, up 795.48 percent year on year. Qinghai Salt Lake Industry reported first-half net profit of 6.169 billion yuan, up 137.88 percent year on year. Sinomine Resource Group's lithium sulfate project in Zimbabwe with an annual capacity of 100,000 tonnes is expected to be completed and put into production by mid-2027. Beimo High-tech Friction Materials plans to repurchase shares for 120 million to 180 million yuan for employee stock ownership plans or equity incentives.

The global MDI market is expected to maintain a supply-demand gap of around 220,000 tonnes from 2026 to 2028, with a tight balance supporting upward price momentum. Essence Securities analysis points out that in 2026, concentrated maintenance shutdowns at major global MDI and TDI producers, combined with geopolitical conflicts pushing up pure benzene costs, have led Huntsman and Wanhua Chemical to take the lead in raising prices overseas. On the supply side, capacity continues to tilt toward China, with Wanhua's Yantai unit having a cost advantage of over 1,000 yuan per tonne compared to European facilities. On the demand side, growth is jointly driven by lightweighting in new energy vehicles, new national standards for formaldehyde-free boards, and export substitution. As of 1:04 p.m. on August 5, the CSI Sub-Industry Chemical Theme Index surged 2.42%, with constituent stock Dongcai Technology hitting the 10% daily limit and Tongcheng New Materials rising 8.33%. The Chemical ETF Harvest tracks this index closely, focusing on a new cycle of prosperity amid the industry's anti-involution backdrop.

Chemical ETF Penghua rose 2.43%, with the latest price at 0.8 yuan, closely tracking the CSI Subdivision Chemical Industry Theme Index which surged 2.13%. In news, demand for new AI materials is strong, global cloud providers are increasing AI computing investment, AI server shipments are expected to grow nearly 31% annually, upstream key segments receive deterministic order increases, and in August electronic fabric prices recorded the largest single-month gain this year. In polyester, PTA market supply has tightened significantly recently, with multiple production lines reducing load or shutting down, expected to affect capacity of about 12.75 million tonnes, accounting for roughly 13% to 14% of total industry capacity. Under supply disruptions, PTA processing margins may expand, while upstream raw material supply bottlenecks could strengthen polyester product pricing power and profit recovery potential. Institutions point out that they firmly expect the chemical sector to welcome a valuation recovery driven by a long prosperity cycle in the third quarter. The long-term logic of tightening industry supply, optimizing competitive landscape, and domestic enterprises gaining global market share remains unchanged. Current sector valuations are at historical lows and have already digested short-term earnings headwinds. As of July 31, 2026, the top ten weighted stocks in the CSI Subdivision Chemical Industry Theme Index accounted for 43.44% of the total, including Wanhua Chemical, Qinghai Salt Lake Industry, and Zangge Mining.

The global pentaerythritol triacrylate reactive diluent market is projected to grow from $1.23 billion in 2025 to $1.70 billion by 2030, according to a new 250-page report from ResearchAndMarkets.com. The market is expected to reach $1.31 billion in 2026, representing a compound annual growth rate of 6.6%, and then expand at a CAGR of 6.8% through 2030. Growth is driven by rising demand for UV-curable coatings, inks, adhesives, and electronics applications, with Asia-Pacific leading demand and North America offering the fastest expansion potential. The report profiles 20 major companies including BASF SE, Wanhua Chemical Group, and Evonik Industries, and highlights trends such as bio-based formulations and strategic distribution partnerships like the one between IGM Resins and IDCC Global Chem in India.

Since late July, the global polyurethane raw materials market has seen a wave of concentrated price hikes. Domestic and international chemical giants such as Wanhua Chemical, Huntsman, and BASF have successively issued price adjustment notices for MDI and TDI products. Downstream TPU leader Miracll Chemicals also raised product prices simultaneously. Wanhua Chemical announced that effective July 29, it would raise MDI and TDI prices in Southeast Asia by 200 US dollars per tonne. Huntsman raised all MDI product prices in Europe, Africa, and the Middle East by 250 euros per tonne, with the new prices taking effect on August 1, 2026. At the same time, it raised MDI and polyurethane systems prices in India and the Indian subcontinent by 300 US dollars per tonne. Shanghai Huntsman's August list price for polymeric MDI rose by 1,500 yuan per tonne to 19,500 yuan per tonne. BASF Shanghai's August list price for TDI rose by 1,000 yuan per tonne to 19,000 yuan per tonne. The price adjustments are mainly due to significantly higher raw material and logistics costs caused by geopolitical tensions in the Middle East. Currently, global MDI production capacity is highly concentrated. Wanhua Chemical leads with 3.8 million tonnes per year, followed by BASF with 2.07 million tonnes per year, Covestro with 1.77 million tonnes per year, Huntsman with 1.37 million tonnes per year, and Dow with 1.11 million tonnes per year. On the supply side, concentrated maintenance shutdowns of multiple plants are tightening supply. On the demand side, China's MDI exports in the first half of 2026 reached 505,000 tonnes, up 22.5 percent year-on-year, with June exports alone hitting 109,000 tonnes, a sharp increase of 56.4 percent year-on-year. Institutions are bullish on the industry's upward cycle. Wanhua Chemical expects first-half net profit of 9.8 billion to 10.4 billion yuan, up over 60 percent year-on-year. TDI producer Cangzhou Dahua expects first-half net profit of 101 million yuan, up about 330.75 percent year-on-year.

Donghong Pipe announced that it has been pre-selected as the winning bidder for Wanhua Chemical Group Materials Company's 2026 ordinary and anti-corrosion spiral welded pipe framework project. According to the winning candidate announcement published on Wanhua's electronic bidding and tendering platform, the company has become the winning candidate for four bid sections, with a total bid amount of 180 million yuan.

The global polyurethane dispersions market is projected to grow from USD 3.00 billion in 2025 to USD 4.34 billion by 2030, at a compound annual growth rate of 7.7%. Solvent-free polyurethane dispersions are expected to be the fastest-growing product type, driven by demand for zero-solvent, low-emission technologies in leather, textiles, packaging, wood coatings, and automotive interiors. Paints and coatings are forecast to lead application growth, supported by low-VOC and environmentally compliant coatings in construction, automotive, and wood applications. Asia Pacific is projected to be the fastest-growing regional market, with China, India, South Korea, and Indonesia seeing expansion across automotive, textile, construction, and packaging sectors. The report covers companies including Covestro AG, BASF, Dow, Wanhua, Lubrizol, Mitsui Chemicals, Alberdingk Boley, Perstorp, Stahl Holdings, and UBE Corporation.

The chemical sector continued to climb, with Chemical ETF Penghua rising 1.73% to 0.88 yuan, while the CSI Subdivided Chemical Industry Theme Index gained 1.98%. Institutions noted that some traditional cyclical chemical products are at low valuations after earlier adjustments, with leading companies posting solid earnings and offering good value. Meanwhile, the long-term logic for tech materials such as AI remains intact, and pullbacks provide entry opportunities. As of June 30, the top ten constituents of the index accounted for 43.96% of the total weight, including Wanhua Chemical and Qinghai Salt Lake Industry.