BAOWU MAGNESIUM(SZ:002182)2022-12-07 00:01Group 1: Company Overview - The company primarily produces magnesium alloys, aluminum alloys, and metal strontium [2][3] - Magnesium alloy production capacity is 170,000 tons, with major plants located in Yuhang (50,000 tons), Suzhou (40,000 tons), Chao Lake (50,000 tons), and Huizhou (30,000 tons) [3] - The company holds over 30% of the global magnesium alloy market share, ranking first in the industry [3] Group 2: Strategic Direction - The company has focused on upstream development in recent years, with plans to enhance both upstream and downstream operations to improve profit margins [3][4] - The demand for magnesium is expected to increase, with the current supply-demand relationship being balanced [4] Group 3: Market Insights - The company benefits from rising magnesium prices if not driven by raw material costs, as it enhances profit margins [4] - Magnesium alloys are increasingly used in automotive components, with applications expanding to larger parts like doors and hoods [4][5] Group 4: Production and Sales Performance - The company’s die-casting products mainly focus on automotive parts, with a projected sales increase of over 20% for steering wheel skeletons this year [4] - The current production and sales rate exceeds 80% [5] Group 5: Future Applications - Magnesium alloys are recognized for their high performance as lightweight structural materials, with applications in automotive, 3C products, and rail transportation [5][6] - The company is integrating its magnesium alloy business through acquisitions to strengthen its market position [5]