Military Products Business Continues To Grow! The Net Profit Of Guangwei Composite Materials Co., Ltd. Was 341 Million Yuan In The First Half Of The Year

Weihai Guangwei composite materials Co., Ltd. (hereinafter referred to as "Guangwei composite") released the performance forecast for the first half of 2020 on the evening of July 8. It is estimated that the company will make a profit of 341.4 million yuan - 356.65 million yuan in the first half of the report period, with a year-on-year growth of 10% - 15%.

As for the reasons for the performance changes, Guangwei composite explained that:

1. During the reporting period, the company made great efforts to reduce the impact of the epidemic on its business operations. The business of carbon fiber (including fabric) for military and civilian products maintained a steady growth, with an increase of about 36% compared with the same period of last year. Due to the spread of the epidemic, wind power carbon beam business had delayed delivery, with a slight increase of 4% over the same period of last year. The company's overall operating revenue increased by about 20% compared with the same period of last year.

2. According to the preliminary calculation, the non recurring profit and loss of Guangwei composite materials during the reporting period was about 25.17 million yuan, with a year-on-year decrease of about 1.78 million yuan; the government subsidy included in the current profit and loss was about 22.42 million yuan, with a year-on-year decrease of 46.9 million yuan.

Industry insiders believe that as a leading enterprise in the field of carbon fiber in China, Guangwei composite materials benefits from the upgrading of military equipment, and the business of traditional carbon fiber and fabric is expected to continue to grow steadily. With the completion and operation of Baotou project and further cooperation with Vestas, the wind power carbon beam industry is expected to continue to maintain rapid growth.

According to the financial report, in the first quarter of 2020, Guangwei composite materials achieved an operating income of 488 million yuan, a year-on-year increase of 12.31%; the net profit attributable to the parent company was 172 million yuan, with a year-on-year increase of 8.28%; during the reporting period, the company's military business maintained a high growth rate, and the epidemic affected wind power carbon beam declined slightly. The first quarter report showed that the total contract amount of military products orders of Guangwei composite materials in 2020 was RMB 998 million yuan, as of March 31 Today, 289 million yuan has been fulfilled, accounting for 28.96%, with a year-on-year implementation amount of 246 million yuan, an increase of 17.5%, maintaining a high growth rate. Due to the impact of the epidemic, other businesses have delayed the resumption of work or delivery. Wind power carbon beam achieved 154 million yuan of business revenue, a year-on-year decrease of 1.95%; other businesses achieved revenue of 45 million yuan, including small batch of t800h supplied to the military.

In the face of the impact of the epidemic situation, Guangwei composite materials, while doing a good job in the prevention and control of the epidemic situation, actively took a variety of measures to promote the resumption of work and production, reasonable control of resources, to ensure the growth of its business income. On April 4, Guangwei composite announced that it had received the "order contract for weapon equipment supporting products" signed by Weihai development Fiber Co., Ltd., a wholly-owned subsidiary, with a total amount of 998 million yuan. The performance period is January 1, 2020 and December 31, 2020. The contract amount accounts for 58% of the company's audited operating revenue in the latest accounting year.

Wanlian securities analyst Chen Wen believes that most of the carbon fiber and fabric business orders of Guangwei composite are military aviation high-performance carbon fiber orders. In recent years, with the upgrading of military aircraft, relevant military orders maintain a high-speed growth trend. The demand side of military carbon fiber has strong rigidity, national will, strong planning and stability.

According to the observation, the military product order contract of Guangwei composite materials is generally formulated one year in advance. Under the premise of better control of domestic epidemic situation, as the relevant military enterprises in the supply chain are domestic companies, the company's military products business can still maintain a stable growth under the impact of the epidemic. However, the wind power carbon beam business of Guangwei composite materials is export business, carbon beam raw materials rely on import, and the short-term supply and demand of wind power business may be affected by the new crown. Moreover, with the gradual deterioration of the global epidemic situation, it may further lead to the business of Guangwei composite materials and its global related customers or associated suppliers unable to carry out continuously, and part of the delivery is delayed. The degree of impact depends on the epidemic situation in relevant countries around the world and the government's prevention and control measures. However, due to the high prosperity of the carbon fiber wind power industry, the demand for related downstream carbon beams at home and abroad is still in place, and most of the final customers of the carbon beam business of Guangwei composite are in China. Therefore, Chen Wen predicts that the carbon beam business of Guangwei composite materials will continue to grow in 2020, but the growth rate may slow down.

It is understood that as a leading enterprise of carbon fiber in China, Guangwei composite material Co., Ltd. benefits from the integrated layout of the industrial chain of the company, realizing self-sufficiency of raw materials for the main business, and effectively reducing the production cost. At present, the company has a carbon fiber production capacity of 597 tons, including T300 production capacity of 176 tons / year, T700 production capacity of 276 tons / year, T800 production capacity of 105 tons / year, M40J production capacity of 20 tons / year. In addition, the company has 60 tons of carbon fiber fabric, 8 million square meters of carbon fiber prepreg per year, and 40 carbon beam production lines (about 6 million meters / year capacity).

In 2020, Guangwei composite materials will take the national military standard system as the main line, improve the quality management of the whole process, further optimize the engineering / industrialization technology of domestic T1000 and domestic m60j with the downstream application fields, and increase the investment in the pre research work of domestic t1100 and domestic m65j carbon fiber. As one of the largest suppliers of carbon fiber in the domestic aerospace field, the company is expected to benefit from the upgrading of military equipment. With the upgrading of military equipment, the demand for carbon fiber is increasing year by year. Only 6% of the carbon fiber composites are used in the third generation J-10 fighters, 27% in the fourth generation j-20 fighters, and 24% / 36% in the US main fighter F-22 / F-35. At present, half of the fighters in our army are still of the second generation. In the future, with the replacement of the old models by the third / fourth generation and the large volume of military orders, the demand for military carbon fiber is expected to break out. At present, the qualified rate of T300 small tow carbon fiber of Guangwei composite is more than 95%. The future carbon fiber and fabric business will lay a reliable foundation for the continuous growth of Guangwei composite.

In order to enhance the competitiveness of carbon beam business, Guangwei composite materials, Baotou municipal government and Vestas signed the "agreement on the entry of ten thousand tons carbon fiber industrial park project" with Baotou municipal government and Vestas. The project further expands the product development and application of carbon fiber and its composite materials in the civil field. The total investment of the project is 2 billion yuan. The total investment of the first phase is about 500 million yuan, and the construction period is 2- The project will be constructed in three years according to the market demand.

According to the public information, Guangwei composite was formerly Weihai carbon fishing rod factory established in 1992. It was transformed into a joint stock company in 2014 and listed on the gem in 2017. It is the first A-share listed company in China's carbon fiber industry. Supported by high-end equipment design and manufacturing technology, Guangwei composite has formed carbon fiber, fabric, resin and high-performance prepreg starting from raw silk The complete industrial chain layout of materials and composite products is one of the leading enterprises with the most complete varieties, the most advanced production technology and the most complete industrial chain in domestic carbon fiber industry.