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On Tuesday, JPMorgan analysts lowered the price target for Wanhua Chemical Group stock to RMB55.00 from RMB67.00, while maintaining a Neutral rating. The adjustment reflects ongoing challenges in the manufacturing sector and concerns over global trade tensions impacting the company’s performance.
Wanhua Chemical’s share price has decreased by 23% year-to-date, in contrast to the MSCI China’s 13% gain. The company initially benefited from a temporary US-China trade truce and China’s unofficial exemption of ethane from retaliatory tariffs. However, recent US restrictions on ethane exports at the end of May have led investors to reduce their exposure to the sector.
According to customs data, Chinese MDI exports to the US dropped to zero in April, with total MDI exports falling to 66.3 kilotons, a 40% decrease compared to the 2024 monthly average. Meanwhile, Korean MDI exports increased to 58 kilotons in April 2025, marking a 35% rise from the 2024 monthly average.
JPMorgan analysts expressed a preference for Kumho Petchem over Wanhua in the regional market. Within China, they favor Petrochina (HK:0857) due to its reliance on domestically-sourced ethane, which may provide a more stable supply chain amid the current trade uncertainties.
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