Western Superconductor (688122) issued a notice on November 24, 2021: Western Securities Yamei, Tongxiatian, Guanfu Fund Zhang Hao, Baoying Fund Zhou Jiaying, Ping an Fund Li Jie, interesting assets Zhang Tong Shi Tong, Yuanxin Yongfeng Ma Hongli, CICC Capital Manager Chen Ming and Zhu Jiansheng, Huitianfu Yao Dan, National Gold Fund Bian Guangjie, Taiping Pension Yao Hongfu, Fortune Fund Tan Bicheng, Jianxin Pension Wang Guoxin, Guangfa Fund Wang Ruidong, Guangfa Fund Li Han, Li Han, Li Biao and Liu Junwen, Xinyuan fund, Zhang Weifeng, Changjiang pension Guo GE, Qianhai United Zhang Yong, Huatai Baoxing Fu Changquan, Dong Zheng Yang Renmei, Ping an Capital Management Liu Ning, Haitong self-operated Liu Xing investigated our company on November 24, 2021.
The main contents of this survey are as follows:Q: will the company's equipment for producing high-end titanium alloys and superalloys rely on foreign machinery and equipment? Whether the future will be affected by trade war capacity building.
Answer: at present, the equipment for the production of high-end titanium alloy and superalloy is mainly imported equipment, but domestic equipment can also be used as a substitute, there is no over-reliance on imported equipment. At present, the trade war has not affected the construction of production capacity.
Q: the current application market of superconducting wire, as well as the future prospect, and the corresponding profit situation.
A: the company's superconducting wires are mainly used in magnetic confinement fusion, human nuclear magnetic resonance imager (MRI), nuclear magnetic resonance spectrometer (NMR), magnetically controlled Czochralski monocrystalline silicon (MCZ) magnets and other fields. The company's gross profit margin of superconducting wire has been low, and both the revenue and gross profit margin of superconducting products are expected to increase this year. At present, the downstream products are mainly used in MRI, CFETR, MCZ and other projects. In the future, we will focus on the needs of nuclear fusion engineering reactors, large scientific engineering, semiconductors, high-speed maglev trains, new concept weapons and equipment, and focus on improving China's ability of independent innovation in the field of superconducting materials and magnet technology applications. Benefiting from the stable demand of the MRI medical market, the company's global market share of super lead will continue to expand. Steady progress has been made in the national large-scale scientific engineering project. Magnetically controlled Czochralski monocrystalline silicon (MCZ) magnets have a good market prospect in the field of semiconductors.
Q: if the price of titanium sponge rises upstream, can the company transfer the cost pressure to the downstream enterprises?
A: recently, the company is facing the rise of raw materials such as sponge titanium, so it is more difficult to transfer costs to downstream military customers in the short term.
Q: will the current rise in commodity prices put some pressure on the company's gross profit margin? What control measures does the company have in terms of price fluctuation of titanium sponge?
A: the rise in the price of titanium sponge will put pressure on the company's gross profit margin, and the price of titanium sponge will fluctuate in the future. The company will pay close attention to the fluctuations of commodities and control the pace of procurement.
Q: at present, the main downstream of the titanium alloy of Western Superconductor is aerospace. Will you consider entering other civilian markets when there is enough production capacity in the future?
A: the company will continue to consolidate its advantages in the field of high-end titanium alloy materials, expand the application of its products in aircraft, engines and other model projects, and fully meet the incremental demand for aviation titanium alloy materials by expanding production capacity and further improving product performance. Although the company is currently facing the situation of insufficient production capacity, it will continue to expand and consolidate the market in the civil and foreign trade fields in the future, so as to make good plans for the company's long-term development.
Q: has the company's rebate been improved?
A: at present, the company's order growth is relatively large, but the rebate has not been significantly improved.
Q: would you please introduce the planning and landing time of this fund-raising project?
Answer: this time, the shares issued to specific objects shall not exceed 50000000 shares, and the total amount of funds raised shall not exceed RMB 2.013 billion yuan. After deducting the relevant issuance costs, the net amount of funds raised is intended to be used for: 1, for the industrialization project of high-performance metal materials for aerospace (the total investment of the project is 971 million yuan, the amount of funds to be raised is 971 million yuan, and the construction period of the project is 36 months). The industrialization project of high-performance superconducting wire (the total investment of the project is 100.82 million yuan, the amount of funds to be raised is 100.82 million yuan, and the construction period of the project is 24 months), and the project of Superconducting Innovation Research Institute (the total investment of the project is 230 million yuan. The amount of funds to be raised is 230 million yuan, and the construction period of the project is 36 months). Superconducting Industry Innovation Center (the total investment of the project is 373.2 million yuan, the amount of funds to be raised is 373.2 million yuan, and the construction period of the project is 36 months). Replenish the working capital (337.98 million yuan). At present, all kinds of work is progressing steadily.
Western Superconductor's main business: research and development, production and sales of high-end titanium alloy materials, superconducting products and high-performance superalloy materials.
According to the third quarterly report of Western Superconductor 2021, the company's main income was 2.091 billion yuan, up 37.7% from the same period last year; the net profit was 538 million yuan, up 97.86% from the same period last year; and deducting 500 million yuan from non-net profit, up 109.23% from the same period last year. Among them, in the third quarter of 2021, the company's main income in a single quarter was 835 million yuan, up 47.73% from the same period last year, and the net profit in a single quarter was 225 million yuan, up 61.23% over the same period last year. The non-net profit in a single quarter was 216 million yuan, up 71.67% from the same period last year; the debt ratio was 49.31%, the investment income was 10.2661 million yuan, the financial expenses were 20.6725 million yuan, and the gross profit margin was 43.29%.
A total of 14 institutions have rated the stock in the last 90 days, including 13 buying ratings and one overweight rating; the average institutional target price has been 106.44 in the past 90 days; the net financing outflow in the past three months has been 166 million, and the financing balance has decreased; the net inflow of securities has increased by 19.3611 million. According to the Securities Star valuation analysis tool, Western Superconductor (688122) has a rating of 3 stars, a good price rating of 2 stars, and a comprehensive valuation rating of 2.5 stars. (rating range: 1-5 stars, up to 5 stars)