Weihai Guangwei Composites Co.Ltd(300699) (300699)
Event: on December 30, the company announced that its subsidiary Weihai development signed three order contracts with customer a, with a total amount of 2.098 billion yuan (including value-added tax), accounting for 99.15% of the audited operating revenue of the company in the latest fiscal year. The subject matter of the contract is * * * carbon fiber and fabric, and the performance period is from January 1, 2022 to June 30, 2024. The specific delivery schedule shall be implemented in accordance with the provisions of the contract or the customer’s delivery plan.
Comments: the newly signed large contract of customer a has a stable performance and can be expected to grow. This contract is the normal batch production business of the company’s finalized products. The term of the new contract signed with customer a is 2.5 years, which is longer than the term of the previous contract. We believe that ensuring the basic order is conducive to the stability of the company’s production and operation. In 2020 and 2021, the performance period of the military products contract signed by the company with customer a is from January to the end of December, and the contract amount is RMB 998 million and RMB 1.106 billion respectively. The average annual order amount of the signed contract is 840 million yuan. We believe that the average annual order amount has decreased, mainly because the company’s downstream customers in the aerospace field have a strong voice, and the pricing mechanism of carbon fiber and carbon fiber fabric has been adjusted under the background of centralized purchase of raw materials and equipment. Although in the short term, centralized procurement will have a certain impact on the company’s large contract amount, we are still optimistic about the future. Under the demand resonance of equipment localization, upgrading and batch loading, the company’s T300 will maintain stable supply, T800 products will expand smoothly, and carbon fiber and fabric products will have greater growth space.
The equivalence verification is passed, and the company’s capacity bottleneck is effectively alleviated. According to the announcement on December 9, 2021, Weihai, a wholly-owned subsidiary of the company, recently expanded the carbon fiber product supply model production line reconstructed in other places and passed the equivalence verification. After this equivalence verification is passed, it will effectively alleviate the bottleneck of the company’s carbon fiber precursor production capacity of this model, increase the carbon fiber production capacity of this model production line to about 500 tons, and provide important material support for the application and development of some aviation equipment in China.
We are optimistic about the coordinated development of Weihai Guangwei Composites Co.Ltd(300699) the whole industrial chain, and Baotou project opens up the growth space of civil products. In the field of military products, the company is the largest supplier of military carbon fiber in China. T300 products have been supplied stably for more than ten years, T800 products have been expanded smoothly, and supporting has been realized on multiple military products models. With the large-scale batch production of relevant models of products, the military carbon fiber business is expected to achieve rapid growth. In the field of civil products, the company is the core supplier of carbon beam of wind power giant Vestas. The production capacity of phase I of Baotou project is about to be completed, and the unit electricity charge is expected to be 8400 yuan / ton after it is completed. The tight supply situation of large tow is expected to be alleviated, and the carbon beam business will fully benefit from the release of wind power market demand. In addition, the company’s t700s and t800s civil products carbon fiber have been completed and put into operation. With the continuous promotion of production expansion and cost reduction, the civil products business is expected to fully benefit from the release of carbon fiber market demand such as passenger aircraft, automobile and rail transit. Composite materials: the company continues to expand the business field of carbon fiber composite materials market, and has become a system solution supplier of carbon fiber composite materials business, with broad downstream extension and growth space.
Investment suggestion: we estimate that the net profit attributable to the parent company from 2021 to 2023 will be 795 million yuan, 1014 million yuan and 1287 million yuan respectively, corresponding to PE 54x, 42x and 33x, maintaining the “overweight” rating.
Risk tip: risk of performance fluctuation; Risk of new product development; Risk that the progress of capacity release is lower than expected.
