WHGW Composite Materials Technology Group released today (July 8) evening performance forecast for the first half of 2020. It is estimated that during the reporting period, the company's profit for the first half of the year will be 341.14 billion yuan-3.5665 billion yuan, an increase of 10%-15% year-on-year.
For the reasons for the change in performance, WHGW explained:
1. During the reporting period, the company made efforts to reduce the impact of the Coronavirus (COVID-19) epidemic on its business operations. The military and civilian carbon fiber (including fabric) business maintained steady growth, and revenue increased by approximately 36% over the same period of the previous year; wind power business was affected by the spread of the epidemic There are cases of delayed shipments, and revenue increased slightly by about 4% over the same period of last year; the company's overall operating income increased by about 20% over the same period of last year.
2. After preliminary calculations, WHGW's non-recurring gains and losses during the reporting period were approximately 25.17 million yuan, a year-on-year decrease of approximately 1.78 million yuan; government subsidies included in the current profit and loss were approximately 22.42 million yuan, a year-on-year decrease of approximately 46.9 million yuan.
Industry insiders believe that as a leading company in China's carbon fiber field, WHGW benefits from the upgrading of military equipment. The traditional carbon fiber and fabric business is expected to continue to grow steadily. Business is expected to continue to maintain rapid growth.
The financial report shows that in the first quarter of 2020, WHGW achieved operating income of 488 million yuan, an increase of 12.31% year-on-year; realized a net profit attributable to the parent company of 172 million yuan, an increase of 8.28% year-on-year; during the reporting period, the company's military business maintained a high growth rate, which affected the epidemic Wind power carbon fiber beams declined slightly, and the first quarterly report showed that the total contract value of military orders in 2020 was 998 million yuan. As of March 31, it had fulfilled 289 million yuan, accounting for 28.96%, which was 2.46% compared to the same period last year. 100 million yuan increased by 17.5%, maintaining a relatively high growth rate; while other businesses were delayed due to the epidemic due to postponed resumption of work or shipment, wind power carbon beam achieved operating income of 154 million yuan, a year-on-year decrease of 1.95%; other business realized revenue of 45 million yuan , Including T800H supplied to the military in small quantities.
WHGW's carbon fiber and fabric business orders are mostly military aviation high-performance carbon fiber orders. In recent years, with the replacement of military aircraft, related military orders have maintained a rapid growth trend. The demand end of military carbon fiber is relatively rigid.
As a leading carbon fiber company in China, WHGW benefits from the company's integrated industrial chain layout. The main raw materials of the main business are self-sufficient, effectively reducing production costs. At present, the company has a carbon fiber production capacity of 597 tons, of which T300 production capacity is 176 tons/year, T700 production capacity is 276 tons/year, T800 production capacity is 105 tons/year, and M40J production capacity is 20 tons/year. In addition, the company's carbon fiber fabrics are 60 tons/year, carbon fiber prepreg is 8 million square meters/year, and 40 carbon beam production lines (about 6 million meters/year production capacity).
In 2020, WHGW will take the national military standard system as the main line, improve the quality management of the whole process, cooperate with downstream applications to further optimize domestic T1000-level and domestic M60J-level engineering/industrialization technologies, and increase investment in domestic T1100-level and domestic M65J The pilot work of high-grade carbon fiber. As one of the largest suppliers of carbon fiber in the domestic aerospace industry, the company is expected to benefit from the upgrading of military equipment.
In order to enhance business competitiveness, WHGW and VESTAS signed the "Agreement for Entering the Park of 10,000-ton Carbon Fiber Industrial Park Project". The project further expands the development and application of carbon fiber and composite materials in the civilian field. The total investment of the project is 2 billion yuan in three phases Construction: The total investment of the first phase is about 500 million yuan, and a 2,000-ton/year carbon fiber production line will be built, with a construction period of 2-3 years. According to the construction of the first phase, the production and production capacity digestion, and the construction of the second and third phases in accordance with market demand, the eventual realization 10,000 tons/year output.