Linde (LIN) Enters Multiple Agreements With Wanhua in China
Linde plc LIN signed multiple contracts with chemical producer Wanhua Chemical Group, thereby expanding their partnership across various key areas in China.
Linde will acquire three air separation units (ASUs) from Wanhua in Fujian province on China’s southeastern coast. The acquisition includes two ASUs, which are being developed. The ASUs are expected to be up and running in 2024 and 2025.
Linde will strike long-term agreements with Wanhua for the supply of industrial gases to its chemical production facilities through the ASUs. These facilities will increase Linde’s network density in the Fujian province and accelerate future growth.
Beside this, Linde extended its long-term industrial gas supply agreements with Wanhua at Ningbo and Yantai. This comprises investment in decarbonization solutions to reduce carbon dioxide equivalent emissions by 500,000 tons per year.
The latest deal strengthens Linde’s long-term global partnership with Wanhua. The high-quality investments not only meet the company’s strict investment criteria but also support its sustainability goals while securing future growth.
China continues to be a crucial part of Linde’s Asia profitable growth strategy. The latest partnership increases the company’s network density in crucial industrial areas in China.
For many years, Linde has been safely and reliably supplying industrial gases to sustain business growth. With a wide range of applications for its industrial gases, the company is making the world more productive.
Price Performance
Shares of Linde have outperformed the industry in the past six months. The stock has gained 15% against the industry’s 1.3% decline.
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Zacks Ranks & Other Stocks to Consider
Linde currently has a Zacks Rank #2 (Buy).
Some other top-ranked players in the basic materials space are Innospec Inc. IOSP, Koppers Holdings Inc. KOP and Element Solutions Inc. ESI, currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Innospec is benefiting from strong growth in its Oilfield Services unit and strategic growth measures. IOSP has witnessed upward estimate revisions for 2023 and 2024 earnings in the past 60 days.
Innospec has outpaced the Zacks Consensus Estimate for earnings in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 11.9%, on average.
Koppers has outpaced the Zacks Consensus Estimate for earnings in three of the trailing four quarters. In this time frame, KOP has delivered an earnings surprise of 13.6%, on average.
The Zacks Consensus Estimate for current-year earnings for KOP is currently pegged at $4.40, implying year-over-year growth of 6.3%. Koppers has gained around 44.7% in a year.
Element Solutions ended the first quarter with cash and cash equivalents of $279 million. It has a strong liquidity position to meet its short-term debt obligations. ESI has witnessed upward estimate revisions for 2023 and 2024 earnings in the past 60 days.
Element Solutions has outpaced the Zacks Consensus Estimate for earnings in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 1.8%, on average.
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