Research Report Insights | Guohai Securities: Maintain "Buy" Rating for Weixing Chemical, Optimistic About the Company's Long-term Growth

Guohai Securities Research Report indicates that the prices of satellite chemical products are generally rising, with the price advantage further expanding. According to EIA forecasts, U.S. domestic ethane demand will grow to 2.50 million barrels per day by 2026, but production will also increase rapidly, reaching 3.15 million barrels per day in 2026, ensuring sufficient ethane supply. The construction costs for new terminals in the U.S. are high, with a construction period of 5-6 years, making it difficult to establish effective shipping capacity for ethane exports in the short term. The company’s α-olefin comprehensive utilization high-end new material industrial park project started construction in Q2 2024, with a planned total investment of about 26.6 billion yuan. The first phase involves a total investment of approximately 12.15 billion yuan, including two 100,000-ton-per-year α-olefin (LAO) units, one 900,000-ton-per-year polyethylene unit (45×2), one 450,000-ton-per-year polyethylene unit, one 120,000-ton-per-year butadiene extraction unit, one 260,000-ton-per-year aromatics processing joint unit, and supporting 2 million-ton-per-year raw material processing facilities (including WAO supporting units). The construction of the α-olefin comprehensive utilization high-end new material industrial park will further expand the company’s upstream ethylene capacity; simultaneously, the project adopts self-developed high-carbon α-olefin technology to extend downstream into high-end polyolefins (mPE), polyethylene elastomers (POE), lubricant base oils (PAO), ultra-high-molecular-weight polyethylene (UHMWPE), and other new materials, further consolidating the company’s foundation in functional chemicals, high-end new materials, and new energy materials, supporting long-term growth. The company’s C2 business has a significant cost advantage, and the α-olefin comprehensive utilization project opens up growth space, accelerating the layout of POE and other new materials. We are optimistic about the company’s long-term growth and maintain a “Buy” rating.