Event
On October 19, Wanfeng Aowei released the third quarter report of 2022, the operating income in the first three quarters of 2022 was 11.676 billion yuan, an increase of 37.05% over the same period last year; the net profit belonging to shareholders of listed companies was 594 million yuan, an increase of 152.12% over the same period last year.
Core viewpoints
There are plenty of orders on hand, and the company's revenue and profits are growing strongly. The company's Q3 single-quarter income was 4.452 billion yuan, an increase of 49.76% over the same period last year, while the net profit belonging to shareholders of listed companies was 243 million yuan, an increase of 9772.23% over the same period last year. The company's gross profit margin in the first three quarters was 18.16%, up 2.1pct from a year earlier.
The rapid increase in the company's performance is mainly due to sufficient orders, year-on-year growth in order volume, year-on-year rise in prices of major raw materials and optimization of price linkage settlement mechanism.
The performance inflection point has appeared, and the company focuses on grasping the lightweight opportunity of new energy vehicles. The company revolves around magnesium alloy, aluminum alloy and other metal parts lightweight subdivision industry leading application advantages, with aluminum alloy, magnesium alloy as the support focus on the layout of lightweight business. In the first three quarters, the lightweight business of automotive metal parts achieved an operating income of 10.215 billion yuan, an increase of 39.64% over the same period last year, of which the automotive aluminum alloy wheel business increased by 44.75%, and the magnesium alloy business increased by 67.44% over the same period last year.
With the continuous improvement of the permeability of new energy vehicles and the further promotion of the lightweight trend of vehicles, we believe that the company's aluminum alloy and magnesium alloy business will continue to develop steadily.
The domestic navigable aircraft market is huge, and the "twin-engine" layout helps the company to open up new growth points. China's navigable aircraft industry is still in its infancy. With the gradual improvement of domestic infrastructure, the company's strategic layout of navigable aircraft business, twin-engine strategy is steadily advancing. In the first three quarters, the company had sufficient orders for the aircraft manufacturing business, and the sales business continued to be optimized. The operating income of the aircraft manufacturing business reached 1.461 billion yuan, an increase of 21.27 percent over the same period last year. The company's aviation aircraft manufacturing business takes aircraft innovation manufacturing as the core, and constantly strengthens the business model of "R & D-authorization / technology transfer-machine manufacturing and sales-after-sales service", and the growth space is constantly opened.
Investment suggestion
It is estimated that the operating income of the company from 2022 to 2024 is 151.04 pound 17862 million yuan respectively, and the net profit returned to the mother is 7.98 million yuan 992 million yuan, respectively, and the corresponding EPS for 2022-2024 is 0.36 pound 0.45 yuan 0.57 yuan per share. Based on the closing price of 6.03 yuan on October 19, 2022, the corresponding PE is 16.53, 13.30 / 10.52 times, respectively, maintaining the "recommended" rating.
Risk hint
Macroeconomic fluctuations; raw material price fluctuations; international trade and exchange rate fluctuations; policy landing is not as expected.