Global demand for MDI will be higher than expected in the next few years as demand in the US and Europe rises.

Yantai Wanhua will expand the capacity of the Yantai plant from 13-14 tons to 18-19 tons in 2008.

Based on the above judgment, the company raised 2008 to 2009 EPS to 1.31 yuan, 1.53 yuan.

Continue to maintain the "overweight" rating.

It is understood that due to the widely accepted and deepened understanding of global warming, the legislation of environmental protection in the European and American countries has become mandatory. The recent changes in the laws of environmental protection and energy saving in Europe and the United States have made the former part of the field of MDI slowing down again, and the growth rate of the MDI market in Europe and the United States has increased rapidly from 4-5% to 7-9%.

As the MDI consumption in Europe and the United States accounts for nearly 2/3 of the global consumption ratio, its growth rate is picking up the demand for the global market. It is estimated that the growth rate of global MDI demand will be around 8% in the next few years, of which the average annual growth rate in Europe and the United States is more than 7%, and that in the Asia Pacific region will be 8%, and China will continue to maintain an increase of more than 15%.

At the same time, global capacity is released smoothly, and supply and demand are basically balanced.

Yantai Wanhua is a high-quality chemical company with core competitiveness of independent innovation. In the next few years, the capacity and output of public MDI will continue to grow and growth will be determined.

In 2008, the Yantai plant will expand to 18-19 tons. In 2009 and 2010, it will grow steadily. In 2011, the output of the Ningbo two phase 300 thousand tons / year will increase again.

In addition, the company will extend to the upstream and enter the field of coal chemical industry in the future.