From The Fishing Rod King To The Domestic Leader Of Aerospace Grade Fiber, The Net Profit In 2019 Is Over 500 Million.

Weihai Guang Wei composite material Limited by Share Ltd (hereinafter referred to as "Guang Wei complex") disclosed the 2019 performance bulletin in the evening of February 23rd. During the reporting period, the company realized total revenue of 1 billion 715 million yuan, an increase of 25.77% over the same period, and a net profit of 519 million yuan, an increase of 37.88% compared with the same period last year, with a basic income of 1 yuan.


As of the end of the reporting period, the total assets of Guang Wei complex amounted to 4 billion 58 million yuan, an increase of 13.15% over the same period last year, and the owner's equity of the listed company's shareholders was 3 billion 242 million yuan, an increase of 13.29% over the same period last year. The main reason is the increase in performance.


The company explained that the growth of the company's performance during the reporting period benefited from the steady growth of carbon fiber (fabric) business and wind power carbon beam business. The company receivable accounts were realized through non recourse factoring and other business transactions, operating cash flow continued to improve, and the loss of credit impairment was reduced.


Wang Tianyi, an analyst at Orient Securities, has said that 2020 will be the year when the defense industry will start a large cycle. On the one hand, the new generation of equipment such as the 20 series will usher in the loading capacity. On the other hand, C919 will enter the final sprint before delivery, and the new market space will soon be opened. On this basis, the superposition of the single machine and the replacement of domestic fibers will bring broad prospects. In its view, Guang Wei composite material is the first industry leader to realize the localization of aerospace grade fiber. The model fiber has a wide coverage and a high market share, and the intermediate mode fiber is in the lead. It is the only domestic supplier currently participating in C919PCD airworthiness certification. The industrial characteristics of "long cycle, high investment and model binding" have created high barriers for the company and laid the foundation for future sustained growth.


Reporters learned that at present, the sources of income of light Wei complex mainly include two parts: one is carbon fiber and fabric, which mainly faces the military aviation field, the gross profit margin of the corresponding products is about 80%; and the two is the wind power carbon beam, which mainly faces the civil wind power field, and the gross profit margin of the corresponding product is about 22%. In 2019, Guang Wei complex adhered to the "521" development strategy, actively organized product production and delivered orders in a timely manner. During the reporting period, the company's carbon fiber and fabric business and wind power carbon beam business maintained steady growth. In addition, according to the company announcement, during the reporting period, the company receivable accounts were realised through non recourse factoring and other business transactions, and the operating cash flow continued to improve, and the loss of credit impairment was reduced.


In addition, Guang Wei complex disclosed in February 2nd that the overall operation of the company's business is as follows: first, at the start-up level, the carbon fiber production line of the company involved in military operations is in continuous production during the Spring Festival, and will continue to maintain production after the festival. Other general civilian products during the Spring Festival holiday will be postponed to February 10th in strict accordance with the urgent request of the Shandong provincial government. Secondly, at the sales level, the continuous production and delivery of the carbon fiber business during the Spring Festival are not affected. Carbon beam business, which has been prepared for direct customers in the inventory of two weeks or so before the domestic model, has little effect on the delayed reemployment. The direct delivery of the models abroad may affect the delivery time for about a week. In the prepreg and composite materials business, due to the delayed reemployment of most of the customers, some of the recently delivered products have been communicated. Due to the appropriate delay, the company has little effect on the sales and delivery after the resumption of work. Besides, raw material level, the main raw materials for the production of light and prestige compound material can meet the needs of start-up production.


According to public information, Guang Wei complex is a leading enterprise in China devoted to R & D and production of high performance carbon fiber and composite materials. Its predecessor was the Weihai carbon fishing rod factory established in 1992. The company was restructured into Limited by Share Ltd in October 2014, and was officially listed on the gem in 2017. It is the first A share listed company in the domestic carbon fiber industry.


Our company has 5 wholly-owned subsidiaries, namely, development fiber, Guang Wei Jing machine, Guang Wei Research Institute, Guang Wei Hongkong and Guang Wei new energy materials. Among them, the development of fiber mainly engaged in the development and production of military carbon fiber and related products, is the main production unit of the company's carbon fiber; new energy and energy materials are mainly engaged in the development and production of wind power carbon beam business.


Our company has the whole industry chain layout of the carbon fiber industry, which includes raw silk, carbon fiber, fabric, prepreg and carbon fiber composite materials and products. The company's main products include three main categories: carbon fiber and fabric, carbon beam and prepreg. Carbon fibers and fabrics are mainly used for military products, and are used in aerospace and other fields. Carbon beams and prepreg are civilian products, and are applied to wind power industry and sports and leisure fields.


In 2018, carbon fiber and fabric, carbon beam and prepreg accounted for 44.22%, 38.20% and 13.43% of the company's revenue respectively, accounting for 75.72%, 17.90% and 4.68% of gross profit of the company.


Zou Runfang, a researcher at Tianfeng securities, said that the business income of Guang Wei complex in 2018 was 1 billion 364 million yuan, an increase of 43.63% over the same period last year, and net profit of 377 million yuan, up 58.76% over the same period last year. The company's operating income and net profit continued the growth trend of the past three years, mainly divided into two stages: before 2017, the growth of the company's operating income and net profit mainly stems from the steady growth of the carbon fiber and fabric income. In 2014-17 years, the compound growth rate of the business reached 19.40%. After 2017, the wind power carbon beam business has gradually become a new business growth point of the company. Income has increased dramatically.


According to the financial report, in the first three quarters of 2019, Guang Wei complex realized its operating income of 1 billion 309 million yuan, an increase of 33.05% over the same period last year, and net profit of 444 million yuan, up 43% over the same period last year. According to the 2019 China Daily report, the company's carbon fiber and fabric revenue was 423 million yuan, an increase of 31.38% over the same period, and carbon beam business revenue of 299 million yuan, an increase of 38.65% over the same period last year. Zou Runfang believes that with the continuous volume of military products and the increase in civilian product orders and production lines, the future revenue and net profit of the complex will remain stable and fast growing.


Zou Runfang said that the wind power carbon beam business is mainly based on the cooperation between Guang Wei complex and Vestas wind technology company (Vestas). Since 2016, it has been growing rapidly, and has gradually become an important source of income and a typical carbon fiber civilian product application. The 2017-2018 year carbon beam business revenue increased 697.47% and 99.89%. In addition, the gross profit margin of light carbon composite carbon beam has increased steadily. It is expected that its main product stems from the cooperation between the company and VESTAS, and the technology and technology level of large tow products have been greatly improved. Therefore, with the further increase of the carbon beam production line, the carbon beam business will continue to grow at a high speed in the future.


Zou Runfang said frankly, whether from the prospect of the entire carbon fiber industry, the leading position of the prestige complex, or the good growth of the company itself, the competition pressure of the complex will be smaller in the future, and its performance will be more determined by its growth ability.


As of the first issue of textile network reporter, as of February 20th, Guang Wei complex received 56.10 yuan / share, or 1.21%, the market value of 29 billion 100 million yuan. On the same day, the number of shareholders of Guang Wei complex was 31 thousand and 400, a decrease of 306 compared with the previous period (February 10, 2020), a decrease of 0.96%, and the number of tradable shares held by households increased from 10 thousand and 200 shares in the previous period to 10 thousand and 300 shares, with an average household circulation value of 568 thousand and 900 yuan.