The company is the only private enterprise with the ability to prepare superalloys from materials to production process. As the technology research and development platform of the company's superalloy, Wanze Zhongnan Research Institute continues to promote the basic technology research and development necessary for the industrialization of superalloy. In the first half of 2022, the superalloy blade project of Wanze Central South Research Institute developed at a high speed, realizing the delivery of more than 2000 finished products, turning losses into profits compared with the same period last year; the national, provincial and municipal scientific research projects that have been undertaken are steadily advancing according to the plan, and started a number of scientific research projects at the same time; Wanze Central South Research Institute successfully passed the ISO on-site evaluation and obtained ISO9001 quality system certification. Shanghai Wanze in the overall economic situation is not good, still against the trend to increase investment in production equipment, production lines and research and development investment, rapidly expand production capacity. Shenshan Wanze has completed the transformation of the plant and has a production capacity of 100 pieces / year of powder plate, 100 tons / year of powder and 60 tons / year of master alloy. The annual production capacity of 10,000 pieces of superalloy blades can be achieved in the second half of 2022.
The superalloy business has won a large number of orders and is expected to achieve rapid growth. In July 2022, Shanghai Wanze and Shenshan Wanze signed a "Product and Service Sale contract" with relevant customers for a certain type of aero-engine blade and related accessories, with a contract amount of 59.8928 million yuan. In November 2022, Shanghai Wanze won the bid for the casting manufacturing project of a certain type of aviation engine engine, guide vane and other castings of China Aviation Development Shanghai Commercial Aeroengine Manufacturing Co., Ltd., with a bid amount of about 42.6746 million yuan. Shenshan Wanze won the bid for the casting manufacturing project of high pressure turbine blades and turbine outer rings of a certain type of aero-engine in Shanghai Commercial Aero engine Manufacturing Co., Ltd., with a winning bid amount of about 38.9322 million yuan. The above amount accounts for 151.14% of the company's superalloy business revenue in 2021, and the company's superalloy business is expanding rapidly.
The business of microecological live bacteria products has developed steadily. The main products of Inner Mongolia Shuangqi, a wholly-owned subsidiary of the company, are Bifidobacterium Lactobacillus triple live bacteria tablets and vaginal Lactobacillus live bacteria capsules, both of which are microecological live bacteria drugs composed of bacteria of human origin, which have been included in the national medical insurance catalogue for many years in a row. It has high market popularity and market share in the subdivision field, contributing stable profits for the company.
Investment suggestion and rating: from 2022 to 2024, the company's operating income is estimated to be 745,813,000,000 yuan, the net profit of return to the mother is 1.21,136,000,000 yuan respectively, and the EPS is 0.24Universe 0.27company0.32 yuan respectively. In view of the stable profitability of the company's micro-ecological live bacteria business and the large orders of the superalloy business, the coverage gave the company an "overweight" rating for the first time.
Risk hints: the risk of the decline of the profitability of microecological live bacteria products; the risk that the development of superalloy business is not as expected; the risk of profit forecast and valuation is not as expected.