Weihai Guangwei Composites Co.Ltd(300699) (300699)
Event: the company announced that the subsidiary Weihai expansion signed three order contracts with customer a, the subject of which is X-type carbon fiber and fabric. The total amount of the three contracts is about 2.1 billion yuan, and the contract performance period is from January 1, 2022 to June 30, 2024.
comment:
The two signing times are close, or it indicates that the tasks of the previous contract are close to completion: on December 9, the company issued an announcement to sign a major contract, the subject matter and customers are similar to this contract, and the performance time is from January 1, 2021 to December 31, 2021. We believe that this contract has been signed within less than one month from the signing of the previous contract, or because the relevant parties have fully communicated and coordinated during the signing of the previous contract. The start time of this contract performance is immediately followed by the end time of the previous contract. Considering that the company previously introduced that it “has the necessary production capacity and resource conditions to meet the contract orders and has a good ability to perform the contract”, or that the previous contract tasks can be completed as planned.
Large orders highlight product quality and long contracts reflect downstream demand: since the company went public, it has announced the time when the subsidiary signed a major contract with customer a for many times. In terms of contract amount, the contract amount signed this time is the highest in all previous times, which fully shows that customer a has established a high degree of recognition for the company’s products through long-term cooperation. At the same time, we note that the performance period of this contract is 2.5 years, the longest in previous contracts, which also reflects the long-term demand of downstream links for the company’s products.
The company’s diversified products have been applied in many fields, opening up new market space for the company: the company’s fund-raising project “industrialization project of military civilian integration high-strength carbon fiber efficient preparation technology” has gradually released its production capacity after 21q2. T700s / t800s carbon fiber products have been applied to gas cylinders, heat fields, building reinforcement and other application scenarios. “High strength and high model carbon fiber industrialization project” has also been put into operation, and M40J / m55j products have been applied in satellite and other aerospace fields. The company’s diversified products have been applied in many fields, opening up a new market space for the company.
Profit forecast, valuation and rating: we believe that the performance of this contract will have a positive impact on the company’s operating revenue and profit. The company’s diversified products have been applied in many fields, opening up new market space for the company. Maintain the profit forecast of the company. The EPS from 2021 to 2023 are 1.59, 2.02 and 2.40 yuan respectively, and the corresponding PE of the current stock price is 52X, 41x and 34x respectively. Maintain the company’s “buy” rating.
Risk tip: the risk that the price of military products may be lowered, resulting in the decline of profitability; The risk that the rising price of raw materials will lead to the decline of profitability; Risk that the progress of new product R & D and new market development is less than expected; Risk of order reduction caused by market competition; The epidemic control situation is not as expected, resulting in the risk of reducing the company’s overseas business.
