GW COMPOS(SZ:300699)2022-12-05 02:01Group 1: Company Overview and Market Position - Guangwei Composite Materials has a long history of T300 carbon fiber application in military products, with over 30 years of usage in the U.S. [4] - The company is a leader in the development of the next-generation T800 product, which is expected to be adopted in new aircraft models [4][5] - The company has doubled its carbon fiber production capacity in 2017 due to the trial operation of the T700 production line [5] Group 2: Financial Performance and Market Challenges - The company's Q3 performance forecast indicates a slowdown in growth, primarily due to downstream clients' maintenance and holiday shutdowns, leading to reduced shipments [5] - Global carbon fiber capacity utilization is low, estimated at 65%-72%, with China producing around 3,000 tons out of a capacity of 20,000 tons [5][6] - The company has made provisions for impairment on received bills, impacting Q3 performance [5] Group 3: Competitive Landscape and Production Insights - The company maintains a relatively low fixed asset scale compared to competitors, attributed to its gradual investment in fixed assets and reliance on self-developed equipment [6][7] - The company is actively tracking opportunities for carbon fiber applications in the automotive lightweighting sector, collaborating with domestic research institutions [7] - The cost competitiveness of the T700S product is expected to improve as its technology matures [7] Group 4: Raw Material and Supply Chain Considerations - The rise in prices of raw materials such as acrylonitrile and sulfone has a minimal impact on production costs, as they constitute a small portion of the overall cost structure [8] - Guangwei Composite Materials is involved in the C919 large passenger aircraft project, participating in its trial certification [8]