Wanhua Chemical - A: 2Q beat; we raise FY26E EPS to a 5-year high and upgrade to OW

Research evidence excerpt

Wanhua Chemical - A: 2Q beat; we raise FY26E EPS to a 5-year high and upgrade to OW

J P M O R G A N Asia Pacific Equity Research

08 July 2026

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Wanhua Chemical - A ▲Overweight

Previous: Neutral

2Q beat; we raise FY26E EPS to a 5-year high and 600309.SS, 600309 CH

Price (07 Jul 26):Rmb71.05

upgrade to OW ▲Price Target (Jun-27):Rmb90.00

Prior (Dec-26):Rmb80.00

Wanhua reported a strong 2Q prelim NP of Rmb6.1-6.7bn (+100-120% y/y, +68- Head of Asia Energy & Chemicals |

80% q/q) - the 2nd highest quarterly NP in its history. 1H26 represented 56-59% of Asia EV Battery

FY26 Bloomberg consensus NP. Wanhua’s share price has declined >20% since 13 Parsley Ong AC

April (vs SHCOMP flat) on the back of lower oil prices and a fall in MDI/TDI (65) 6882-8578

spreads. We believe weakness is priced in, and see potential for a recovery in parsley.rh.ong@jpmorgan.com

margins. More importantly, we attribute a large part of the 2Q beat to Wanhua's J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

newly started ethane cracker, which, similar to peers Satellite Chem and Morgan Broking (Hong Kong) Limited

Petrochina, likely delivered very strong 2Q NP. Post earnings, we raise our FY26- Michelle Wong

27 NP estimates for Wanhua by 21%/10% to Rmb19bn and roll our PT to Jun-27 (852) 2800 8556

at Rmb90/shr. Upgrade to OW as current valuation appears attractive with the stock michelle.wong@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.