Driven by policy support and market development, as the foundation and pillar of the equipment manufacturing industry, the scale of China's forging industry has steadily ranked first in the world. With the rapid development of the equipment manufacturing industry, the output of forgings in China continues to remain high. In 2018, the total output of forgings in China reached 12.081 million tons, making it the world's largest producer and consumer of forgings for many years. According to the statistics of China Forging Association, China's forging production accounted for 40.1% of the total global output in 2019, which greatly exceeded the share of other countries. It is expected that the global share will reach 45% by 2025.
As a leading enterprise in the subdivision of ring forgings in China, WXPK Precision Industry Technology Group has become one of the few national high-tech enterprises in China that can supply ring forgings in high-end fields such as aviation, aerospace, and ships.
Benefit from the high prosperity of the engine industry, the company's aviation business is booming
In the aviation field, WXPK's products have covered multiple types of aero engines in service and in the research phase, and are mainly used in important parts such as aero engine casings, combustion chambers, sealing rings, support rings, and bearing rings. Benefiting from the vigorous development of the engine industry, the aviation business will continue to increase in the future.
From the perspective of industry competition, forging products have the characteristics of multiple specifications and customization. The company needs to participate in the design and finalization in the early stage of equipment design, and once the supply relationship is determined, it will basically not be replaced. Therefore, the industry has high barriers to entry and the pattern Relatively stable. With the gradual transfer of forging purchases from international aero engine manufacturers to China, China's leading forging enterprises may usher in greater development opportunities.
As one of the core suppliers of aero engine ring forgings in China, WXPK is expected to continue to maintain rapid growth with the volume of in-service models and batch production of pre-researched models, and the forging industry is an asset-heavy industry, and the scale effect appears as the volume increases. In the future, the company's profitability will have a lot of room for improvement.
Accelerated development of aerospace business
The aerospace industry is a national strategic industry. After decades of hard work, China’s aerospace industry has gradually developed from a simple imitation to the current self-developed industry, and is developing towards low-cost, rapid-response manufacturing. It has been realized in some fields. A considerable number of key technological breakthroughs have been achieved, some of which are close to the international advanced level.
In the field of aerospace business, WXPK provides high-performance forgings for Chinese carrier rockets [carriers that are pushed into predetermined orbits for satellites, spacecraft, space stations, deep space probes, etc.], which are mainly used for carrier rocket engine casings, mounting edges, supports, Flange, launch vehicle fairing, launch vehicle shell, satellite support, etc.