WANFENG AUTO WHEEL(SZ:002085) Huachuang Securities·2024-10-23 01:09Investment Rating - The report assigns a "Recommended" rating for the company, WanFeng AoWei (002085), indicating a positive outlook for investment opportunities in the context of the low-altitude economy [1]. Core Insights - WanFeng AoWei is positioned to benefit significantly from the low-altitude economy, particularly through its Diamond Aircraft brand, which is among the top three manufacturers of general aviation aircraft globally [1][4]. - The company has established a dual-engine growth model through acquisitions, focusing on lightweight automotive components and innovative general aviation manufacturing [9][10]. - Financial projections indicate a compound annual growth rate (CAGR) of 14.8% in revenue from 2020 to 2023, with specific growth rates of 14% in automotive components and 19% in aircraft manufacturing [12]. Summary by Sections Company Development History - WanFeng AoWei has evolved through strategic acquisitions, forming a dual-engine growth model centered on lightweight automotive components and general aviation manufacturing [9][10]. - Key acquisitions include a 55% stake in WanFeng Aircraft Industry in 2020, which has propelled the company into the general aviation sector [10][11]. Diamond Aircraft and Low-Altitude Economy - The company is a leading player in the general aviation sector, with Diamond Aircraft delivering 273 units in 2023, representing 9% of global deliveries [1][4]. - The report anticipates significant growth in the low-altitude economy, projecting the addition of 196 general aviation airports by 2027, leading to a potential increase of 1,454 to 3,929 aircraft [4][5]. Automotive Components Business - WanFeng AoWei is a leader in the lightweight automotive components market, with a focus on aluminum and magnesium alloys, driven by increasing demand for lightweight materials due to carbon neutrality policies [4][12]. - The company has a production capacity of over 18 million aluminum wheels annually and has seen a rise in the share of new energy vehicle production from 4.6% in 2020 to 31% in 2023 [12][20]. Financial Projections and Valuation - The company is expected to achieve net profits of 9.4 billion, 11.1 billion, and 13.5 billion yuan from 2024 to 2026, with corresponding earnings per share (EPS) of 0.44, 0.52, and 0.63 yuan [1][4]. - The current price-to-earnings (PE) ratio is projected to decrease from 50 in 2023 to 27 by 2026, indicating a favorable valuation in the low-altitude economy sector [2][4].