WLK Latest Report

Financial Performance in 2024

Westlake Chemical Corporation's financial performance in 2024 showed an operating revenue of USD2.843 billion, a 0.61% increase from USD2.826 billion in 2023. Despite the slight growth, the overall growth was not significant, reflecting the challenges and opportunities in the market environment.

Key Financial Data

1. Operating revenue in 2024 was USD2.843 billion, a 0.61% increase from 2023

2. Sales cost in 2024 was USD2.515 billion, a 4.25% decrease from 2023

3. The gross profit margin improved due to cost control, but the overall margin may be affected by market competition and raw material price fluctuations

4. The volatility of raw material prices in the industry affected the overall profit performance

Industry Comparison

1. Overall industry analysis: The overall operating revenue of the chemical industry in 2024 faced challenges, with many companies failing to achieve significant growth due to raw material price fluctuations and uncertain market demand. Westlake's performance aligns with the industry's overall trend, indicating that the industry's recovery from the pre-pandemic level has not yet fully recovered.

2. Peer evaluation analysis: Compared to other companies in the industry, Westlake's operating revenue growth was smaller, reflecting the pressure in the market competition, particularly in responding to market demand fluctuations and price strategy flexibility.

Summary

Westlake Chemical Corporation's financial performance in 2024 showed revenue stability but growth weakness, mainly affected by changes in market demand, raw material price fluctuations, and intensified industry competition. Although sales cost control improved gross profit, the overall market environment remains challenging.

Opportunities

1. Optimize product mix: By adjusting product structure, Westlake can respond to different market demands and enhance revenue stability.

2. Strengthen supply chain management: Optimize the supply chain to reduce costs and enhance the potential for gross margin, especially the shift to Southeast Asia.

3. Adjust pricing strategy: Flexible pricing strategies in response to raw material price fluctuations can enhance market competitiveness.

Risks

1. Uncertainty in market demand: Extreme weather and economic fluctuations may lead to further declines in demand.

2. Raw material price volatility: The downward trend in international oil prices affects inventory and gross margin, potentially increasing financial risk.

3. Intensified industry competition: The pressure from competitors may limit the company's development space in the market.