The Demand For Military Industry And Aerospace Has Increased Rapidly. The Net Profit Of 2018 Is More Than 3.9 Billion.

Weihai Guang Wei composite material Limited by Share Ltd (hereinafter referred to as "Guang Wei complex") issued a 2018 performance notice. It is estimated that the net profit attributable to shareholders of listed companies can reach 391 million, up 65% over the same period last year.

Notice shows that from January 1, 2018 to December 31, 2018, net profit attributable to shareholders of listed companies was 368 million yuan -3.91 billion yuan, an increase of 55%-65% over the same period last year.

It is understood that the main reason for the change in performance is the steady growth of the company's military business during the reporting period, and the continued growth of the wind power carbon beam business. The company realized its main business income of 1 billion 329 million yuan -13.77 billion yuan in 2018, an increase of 40%-45% compared with the same period last year, and the corresponding increase in the company's operating profit. During the reporting period, the company received the value-added tax rebates received in the previous year and received the value-added tax rebate for the current year. During the reporting period, the company's research projects passed the inspection, and the corresponding project cost was 42 million 820 thousand yuan to the profit and loss of the period; after preliminary calculation, the company's non recurrent gains and losses in the 2018 year were about 94 million 20 thousand yuan.

Since 2018, the business of carbon fiber and fabric has increased steadily, and timely delivery has been made according to the order, and the carbon beam business of wind power has maintained a relatively fast growth, driving the performance improvement.

In addition, the company received the value-added tax rebates in 2016 and 2017, which also contributed to the current performance.

After preliminary calculations, the non recurring gains and losses in 2018 were approximately 94 million 20 thousand yuan (33 million 450 thousand yuan in the same period last year). Among them, the scientific research projects undertaken by Guang Wei complex were pferred to the profits and losses in the current period through the inspection and acceptance of the corresponding project funds of 42 million 820 thousand yuan.

In December 29th, the fixed assets and some accounts receivable were written off (net profit margin of 10 million yuan), and the recognition amount of government subsidies in the fourth quarter was lower than expected.

Liu Xi, an analyst with Huatai Securities, believes that the company is a leading enterprise in China's carbon fiber industry, and has the layout of the whole industry chain in carbon fiber and fabric, prepreg and carbon fiber products, and has the capability of developing core production equipment.

With the rapid expansion of domestic military and aerospace demand, the order of wind power carbon beam business will increase, and the company's performance will enter a period of rapid growth.