Business· Markets· Equity

Zhejiang Wanfeng announced Q3 results, revenue recovering from strong aircraft sales

minutes 2020/10/23 07:48:23

Oct 23, 2020 (China Knowledge) - Zhejiang Wanfeng Auto Wheel (002085) has announced its financial results for its Q3 ended Sep 30, 2020. In the Q3 its revenue recorded RMB 2.94 bln, a decrease of 5% YoY, net income attributable to shareholders registered RMB 158 mln, a decrease of 26% YoY, but net income attributable to shareholders (excluding non-recurring gains and losses) reported an increase RMB 140 mln, up 48% YoY.

The figures show 60% of Wanfeng's revenue derives from overseas markets. In the first half of the year, due to the impact of the epidemic at home and abroad, the company's performance declined in the short term. However, with the improvement of the epidemic outbreak and the gradual recovery of its business operations, the company's revenue in Q3 2020 increased by 21% QoQ, net income increased by 7% QoQ, and net income attributable to shareholders (excluding non-recurring gains and losses) increased by 136% QoQ. It is worth mentioning that the acquisition of Wanfeng Aircraft in April this year has boosted its performance in Q3. Its gross profit margin achieved an impressive 21.2%, up 1.3 percentage points YoY.

In the long run, Wanfeng is expected to reap the huge development potential. As of Q3, Wanfeng's Diamond Aircraft account for 68.5% of the total training aircraft used in 141 flight schools nationwide. According to its semi-annual report this year, the proportion of aircraft manufacturing in the company's business has reached 20%, and the new orders of aircraft should increase significantly, which is expected to become an important source of high-quality income in the near future.

It has also announced today that its wholly-owned subsidiary Diamond Aircraft Industries (Austria) had signed a contract for the purchase of 39 Diamond Aircraft from Saudi National Company of Aviation.

The company shares price closed today at RMB 7.10, up 0.42% outperforming its peers in the auto parts sector which recorded negative 0.71%. The broad market CSI 300 and the Shenzhen Component Index show a decline of 1.24% and 2.00%, respectively, on Friday market close.

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