\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 99 Weihai Guangwei Composites Co.Ltd(300699) )
Event: Weihai Guangwei Composites Co.Ltd(300699) released the 2021 annual report and the performance forecast for the first quarter of 2022. In 2021, the company achieved an operating revenue of 2.61 billion yuan, a year-on-year increase of + 23.3%; The net profit attributable to the parent company was 760 million yuan, a year-on-year increase of + 18.2%; Deducting the net profit not attributable to the parent company was 710 million yuan, a year-on-year increase of + 26%, and all performance indicators increased steadily in 2021. In the first quarter of 2022, the performance forecast revenue was 590 million yuan, a year-on-year – 5%, and the net profit attributable to the parent company was 210 million yuan, a year-on-year – 5.4%; It was mainly affected by the outbreak in Weihai and the end of phased orders for wind power prepreg, which contributed a lot to the revenue of the previous period.
Prepreg batch is used for wind power blades to achieve rapid growth, and high-end carbon fiber products gradually contribute to performance increment in large quantities: in 2021, the company’s three major businesses of carbon fiber, carbon beam and prepreg achieved revenue of RMB 1.28/8.1/360 billion respectively, with a year-on-year increase of 18.3% / 12.6% / 51.9% respectively. The composite material processing and manufacturing business was completed and delivered in time, realizing a revenue of 96 million yuan, a year-on-year increase of + 141%; Guangwei precision machinery sector achieved a revenue of 48 million yuan, a year-on-year increase of + 60.5%. The annual sales of amorphous fibers reached 370 million yuan, of which T700, T800 and high-strength and high modulus MJ accounted for 43.9% / 28.2% / 25.8% respectively. Amorphous carbon fiber contributed 12.6% of gross profit and 70.3% of performance growth. As the main material for the next generation of aviation equipment, T800 series products will significantly drive the performance growth of the company in the future.
The gross profit margin was affected by many factors, and the period expense rate continued to decrease: the overall gross profit margin of the company in 2021 was 44.4%, down 5.4 percentage points from 2020; The net interest rate was 29%, down 1.3 percentage points from 2020. Mainly affected by the decline in the price of mass produced and finalized carbon fiber and the increase in the contribution proportion of civil products business, the average sales price of carbon fiber of the company decreased by 31.2% in the second half of the year; The gross profit margin of carbon fiber business was 70%, down 5.2 percentage points from 2020. Affected by the rapid rise in costs and insufficient order delivery caused by the shortage of raw materials, the gross profit margin of carbon beam business was 15.1%, down 6.6 percentage points from 2020. The gross profit margin of prepreg business remained stable at 28.1%, 0.2 percentage points higher than that in 2020. In 2021, the company’s expense rate continued to decline, and the rates of management, sales and financial expenses decreased by 0.6, 0.8 and 0.4 percentage points respectively; R & D investment decreased due to the basic completion of t800h and M40J R & D projects in the early stage.
Product R & D and verification are progressing smoothly, and the expansion project is advancing steadily: the company adheres to the “two high and one low” carbon fiber business development strategy of high strength, high modulus and low cost, continues to invest R & D resources, and has made excellent achievements in new projects, new products and new technologies. The verification of t800h aviation application project has been basically completed, and the production line with a capacity of 105 tons can meet the demand of small batch delivery; T700s and t800s products have become important research units and suppliers in the National Merit Evaluation of a major shell application project; Mass production of carbon fiber square tubes and building reinforcing sectors. A number of R & D and production expansion projects have been constructed simultaneously, the high-strength and high model carbon fiber industrialization project has been officially put into batch production, and the equivalence verification of the remote reconstruction of the precursor capacity of a finalized carbon fiber product has been completed, increasing the carbon fiber capacity of this model production line to about 500 tons per year. Recently, the company announced that it would purchase 100% equity of Beijing Lanke Yingsheng Aviation Technology Co., Ltd. in cash, so as to further establish a composite design platform and gradually enhance the composite design ability.
In 2021, large contracts were signed twice, with sufficient orders on hand: the wholly-owned subsidiary of the company expanded fiber, and successively signed carbon fiber and fabric contracts with customer a with a total amount of 1.1 billion yuan and 2.1 billion yuan in 2021. The contract of 1.1 billion yuan has recognized an income of 830 million yuan in 2021, and the contract performance period of 2.1 billion yuan is from January 2022 to June 2024. The company has full downstream demand and sufficient orders on hand, which strongly supports the growth of performance.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 940 / 11.8 / 1.5 billion respectively, and the corresponding PE of the current stock price is 27 / 22 / 17 times. The company is the first private enterprise to implement the localization of carbon fiber in China and the main supplier of carbon fiber in China’s aerospace field. In the future, with the further verification and batch production of high-end carbon fiber products, the company will continue to develop with high quality. For the first time, give a “overweight” rating.
Risk warning: the risk of the epidemic affecting production and sales; The risk of falling product sales price; Risk that the progress of new product R & D and batch production is less than expected
