Wencan(SH:603348)2022-03-18 07:41Group 1: Company Overview and Recent Performance - Wencan Group expects a year-on-year increase in sales revenue for Q1 2022, despite facing short-term pressure from rising aluminum raw material costs [2] - The total amount of new projects obtained in 2021 is approximately CNY 13 billion, with over 80% related to new energy vehicle projects [2] - The French Bailian Group reported revenue growth in January-February compared to the same period last year, although net profit in February did not meet budget due to increased costs from the Russia-Ukraine conflict [2][8] Group 2: Production and Capacity Expansion - The company is installing a 9000T die-casting machine in the Tianjin factory, expected to be operational by April 2022, with trial production of large integrated body structure components starting in June [3] - The company plans to purchase 2 units of 7000T-8000T die-casting machines and 1 unit of 9000T die-casting machine in 2022, aiming to have a total of 4 units of 6000T-8000T and 3 units of 9000T machines by the end of the year [5] Group 3: Customer Engagement and Market Position - The company is currently in discussions with 5-6 potential clients for large integrated body structure components, with expected mass production starting between 2023 and 2025 [4] - Wencan Group is the first globally to achieve customer mass production project designation and complete trial production in the large integrated body structure component sector, establishing a competitive advantage [4] Group 4: Quality and Raw Material Management - The company has maintained a product quality rate of 90%-95% in body structure components, with confidence in sustaining this rate for large integrated components [6] - The company can pass on raw material price increases to customers based on contractual agreements, with adjustments typically occurring quarterly or semi-annually [7]