\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 99 Weihai Guangwei Composites Co.Ltd(300699) )
Key investment points
Performance summary: in 2021, the company achieved a revenue of 2.61 billion yuan, a year-on-year increase of 23.3%, and a net profit attributable to the parent company of 760 million yuan, a year-on-year increase of 18.2%. Among them, the single Q4 company achieved a revenue of 640 million yuan, a year-on-year increase of 25.8%, and the net profit attributable to the parent company was 140 million yuan, a year-on-year increase of 19.5%.
Revenue growth was generally stable, and the prepreg, composite and equipment sectors performed well. In terms of business segments, 1) the carbon fiber and fabric segment achieved a revenue of 1.28 billion yuan, with a growth rate of 18.3%. Among them, finalized carbon fiber products contributed 900 million yuan, accounting for 71%. The growth rate of this model of products was affected by the price reduction of centralized purchase of military products; The income of T700 products is 160 million yuan, accounting for 13%; The income of T800 products is 100 million yuan, accounting for 8%; The revenue of high-strength and high modulus products is 100 million yuan, accounting for 8%. 2) The new energy materials sector (the main product is wind power carbon beam) achieved an income of 810 million yuan, with a growth rate of 12.6%. The tight supply of main raw materials (i.e. purchased carbon fiber) used in carbon beam business led to insufficient order delivery, and the growth rate decreased. 3) The general new materials sector (the main product is prepreg) achieved an income of 360 million yuan, with a growth rate of 51.9%, of which wind power prepreg contributed nearly 100 million yuan, and the proportion of high value-added products increased significantly. 4) The composite material sector achieved a revenue of 100 million yuan, with a growth rate of 141%. 5) Guangwei precision machinery sector (equipment) achieved a revenue of 50 million yuan, with a growth rate of 60.5%.
The profits of carbon fiber and carbon beam are slightly under pressure, and the cash flow is abundant. In 2021, the company’s comprehensive gross profit margin was 44.4%, a year-on-year decrease of 4.8pp, of which the gross profit margin of carbon fiber and fabric sector was 70%, a year-on-year decrease of 5.1pp, mainly due to the price reduction of military products and the sharp increase in the proportion of relatively low-end civil products; The gross profit margin of the carbon beam segment was 15.1%, a year-on-year decrease of 5.5pp, mainly due to the adverse impact of the sharp rise in the prices of raw materials carbon fiber and resin; The profitability of prepreg and composite materials business segment increased year-on-year. In terms of expense rate, the annual expense rate of the company was 13.6%, with a year-on-year decrease of 5.9pp, and the sales / management / R & D / financial expense rate decreased by 0.8/0.6/4.1/0.4pp respectively. The significant reduction of R & D expenditure was mainly due to the basic completion of the task of carbon fiber development of t800h project and the conclusion of M40J project. The company’s annual net interest rate was 29%, a year-on-year decrease of 1.3pp. In terms of cash flow, the net cash flow of the company is RMB 1.2 billion, with a good cash flow growth rate of RMB 2.52 billion.
The main business of carbon fiber continues to be stronger and bigger, and the advantages of the whole industrial chain are gradually revealed Weihai Guangwei Composites Co.Ltd(300699) as a leading enterprise in the field of domestic carbon fiber, it has stable operation, coordinated development of military and civil products business and rich product matrix. Driven by the high boom demand of aerospace, wind power, gas cylinder and photovoltaic, it is expected to maintain a good development momentum. In addition, based on the main business of carbon fiber, the company has gradually realized the layout of the whole industrial chain from carbon fiber to intermediate products and then to terminal composites, which is expected to continuously cultivate new performance growth points and further consolidate the competitiveness of the company.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 960 million, RMB 1.27 billion and RMB 1.58 billion respectively, and the corresponding PE will be 28x, 21x and 17x. The company has excellent quality and long-term growth strength. At present, the valuation is in the bottom range and is optimistic for a long time, maintaining the “buy” rating.
Risk warning: military price fluctuation risk; Risk that the production capacity launch progress is less than expected.
