Wanfeng Aowei is mainly engaged in the manufacturing business of lightweight automotive parts and general aviation aircraft. Wanfeng Aowei's business includes lightweight automobiles and general aviation aircraft manufacturing, accounting for 83% and 17% of revenue respectively in 2023. Among them, the automobile lightweight business includes automobile aluminum alloy wheels, motorcycle aluminum alloy wheels, and magnesium alloy die-casting business, with 2023 revenue of 6.5, 2.1, and 3.7 billion yuan respectively; general aviation aircraft manufacturing business includes R&D, production, and sales of general aviation aircraft, with revenue of 2.8 billion yuan in 2023.

Card space new energy track, aluminum alloy wheel business is developing steadily. 1) In terms of automobile wheels, the company's automobile aluminum alloy wheels account for about 10% of the global market share. Starting in 2020, the company has seized the opportunity of traditional vehicles to transform into new energy vehicles and has developed strategic cooperation with mainstream NEV companies to become important partners of OEMs such as BYD, Chery, Cyrus, Volkswagen, etc., and the increase in demand for new energy vehicles has brought about a rapid increase in steam turbine business revenue. 2) In terms of motorcycle wheels, motorcycle aluminum alloy wheels account for about 35% of the global market share. The motorcycle wheel business structure is based on the Chinese market, with the Indian market as the core, continuously developing the Japanese, Southeast Asian, European and American markets to achieve steady business development.

Leading magnesium alloy die-casting parts companies are increasing their efforts to acquire new energy vehicle projects. Wanfeng Aowei entered the magnesium alloy die-casting business through the acquisition of Magnesium Reading. Magnesium Reading is the world's leading supplier of innovative magnesium alloy casting parts, and the company's market share in North America reached 65%. The subsequent growth of the company's magnesium alloy die-casting business is mainly due to the increase in the amount of magnesium used in bicycles brought about by the development of domestic new energy customers and the expansion of new products. On the one hand, the company is increasing its efforts to acquire NEV projects, with supporting customers covering NEV customers such as BYD, NIO, and Xiaopeng; on the other hand, the company is increasing market development in large-scale parts such as automobile CCB, door interior panels, rear hatchback door panels, and electric drive housings, and increasing the amount of magnesium alloy support for new models.

The world's leading general aviation aircraft manufacturer, the low-altitude economy opens up a new engine for growth. Wanfeng Aowei's Diamond Aircraft has the top three market share in the world's general aviation aircraft industry, and it is also one of the few private enterprises with general aviation aircraft assembly capabilities. At the same time, Wanfeng Aowei has built aviation towns and production bases in Xinchang and Laixi, and has independent manufacturing capabilities. In the future, with the development of the low-altitude economy, Diamond Aircraft will continue to explore new application scenarios based on application markets such as aviation school training, and further match and develop domestic private flight, short-haul transportation, and special use scenarios through a rich model series, while increasing research and development of new types of aircraft such as electric aircraft and eVTOL to explore the low-altitude market.

Risk warning: Low-altitude economic development falls short of expectations; raw material price fluctuations; investment suggestions: the company's automobile lightweight and general aviation business is two-wheel drive, with estimated revenue of 17.1/18.6/20.5 billion yuan in 24/25/26, net profit of 0.946/1.105/1.302 billion yuan, corresponding EPS of 0.44/0.52/0.61 yuan, given 28-33 times PE in 2025, corresponding to the company's reasonable valuation range of 14.44-17.03 yuan. Covered for the first time, given” “Better than the market” rating.