WANFENG AUTO WHEEL(002085) Guoxin Securities·2024-09-29 00:36Investment Rating - The report assigns an "Outperform" rating to the company [3]. Core Views - The company focuses on automotive lightweight components and general aviation aircraft manufacturing, with a revenue split of 83% and 17% respectively in 2023 [2]. - The automotive lightweight business includes aluminum alloy wheels, motorcycle aluminum wheels, and magnesium die-casting, while the general aviation segment involves research, production, and sales of aircraft [2]. - The company is positioned to benefit from the growth in the new energy vehicle sector and has established strategic partnerships with major manufacturers like BYD and Volkswagen [2]. - The general aviation segment is expected to grow due to the development of the low-altitude economy, with the company being a leading player in the market [2]. Summary by Sections Company Overview - The company is positioned in the "big transportation" sector and implements a dual-engine strategy focusing on automotive lightweight components and general aviation aircraft manufacturing [12]. Financial Analysis - The company experienced steady revenue growth, with a projected revenue of 171 billion yuan in 2024, 186 billion yuan in 2025, and 205 billion yuan in 2026 [3]. - The net profit is expected to reach 9.46 billion yuan in 2024, 11.05 billion yuan in 2025, and 13.02 billion yuan in 2026, with corresponding EPS of 0.44, 0.52, and 0.61 yuan [3]. - The company’s revenue from lightweight components grew from 90.69 billion yuan in 2020 to 134.38 billion yuan in 2023, while the general aviation revenue increased from 16.30 billion yuan to 27.69 billion yuan in the same period [16]. Market Position - The company holds approximately 10% of the global market share in automotive aluminum wheels and 35% in motorcycle aluminum wheels [2]. - The magnesium die-casting business is a leading player in North America with a market share of 65% [2]. - The company’s general aviation aircraft, particularly the Diamond Aircraft brand, ranks among the top three globally [2]. Strategic Initiatives - The company is expanding its partnerships with new energy vehicle manufacturers and increasing its market share in magnesium components [2]. - It is also investing in the development of electric aircraft and eVTOL technologies to capitalize on the emerging low-altitude economy [2].