The company released its semi-annual report for 2021: revenue of 226 million yuan, an increase of 100.17% over the same period last year; net profit of 108 million yuan, an increase of 89.85% over the same period last year; and net profit of 106 million yuan, an increase of 103.67% over the same period last year. From a quarterly point of view, 2021Q2, the company achieved revenue of 118 million yuan, an increase of 83.84% over the same period last year, an increase of 8.46% month-on-month, and a net profit of 61 million yuan, an increase of 101.23% and 29.63% over the same period last year.
In the first half of 2021, the company's overall gross profit margin was 63.26%, which was 63.80% lower than the same period last year, with an increase of 1.13pct compared with the same period last year. The net profit rate was 47.57%, which was 51.62% lower than the same period last year, and 8.43pct increased. The total expenses during the period of the company were 15.3 million yuan, an increase of 6.29% over the same period last year, and the proportion of expenses in revenue was 6.77%, a decrease of 5.98%. Of this total, sales expenses were 370000 yuan, an increase of 43.26%, accounting for 0.16% of operating income, and a decrease of 0.07% over the same period last year; administrative expenses were 8.27 million yuan, a decrease of 12.12%, accounting for 3.66% of operating income, and a decrease of 4.68pct over the same period last year Financial expenses-540000 yuan, compared with-20,000 yuan in the same period last year; R & D expenses were 7.19 million yuan, an increase of 51.84% over the same period last year, accounting for 3.18% of operating income, and a decrease in 1.01pct over the same period last year.
The net cash flow generated by 2021H1's operating activities was 36.47 million yuan, which was-53.1 million yuan in the same period last year, an increase of 168.68% over the same period last year, mainly due to an increase in operating income and an increase in rebates; the company's receivables totaled 383 million yuan, an increase of 62.07% over the same period last year, of which accounts receivable was 248 million yuan, a decrease of 15.33% compared with the beginning of the period, and the turnover rate of accounts receivable was 0.83 times, an increase of 0.18 times over the same period last year. The inventory was 165 million yuan, an increase of 4.89% over the beginning of the period, 13.39% over the same period last year, 6.02% higher than the end of the first quarter, and 0.51% of inventory turnover, an increase of 0.29 times over the same period last year.
The company speeds up the installation of equipment, personnel and site preparation for the NC intelligent manufacturing project of Xindu Branch / subsidiary. As of the release of the China News, the relevant preparations for the equipment and personnel of the project have been in place, and some of the equipment have been put into production one after another; the Aviation Intelligent Manufacturing and system Integration Center project promotes the construction process in an orderly manner according to the plan, and strives to complete the main structure construction within the year, while the project construction company also implements part of the equipment procurement to prepare for the rapid commissioning of follow-up projects.
On July 8, 2021, the China Securities Regulatory Commission approved the company's application for registration to raise funds by issuing shares to specific targets. The company identified the allocated target on August 3 and issued 1190 million shares to 13 specific targets at an issue price of 42.01 yuan per share, raising a total of 500 million yuan. After deducting the issuance expenses, the net amount of the raised funds will all be used for the aviation parts intelligent manufacturing center project and supplementary current funds, of which the aviation parts intelligent manufacturing center plans to invest 440 million yuan to raise funds. After it is completed and fully reached production, it is estimated that the annual sales income will be 234 million yuan, and the net profit will be 60.02 million yuan.
We maintain our profit forecast and expect the company's 2021-2023 net return profit to be 250.85 billion yuan and EPS 1.56 billion yuan per share respectively, corresponding to the closing price of PE on August 23, which is times that of 53-35-24, maintaining a "prudent overweight" rating.
Risk hint: military procurement is not as expected, and increased competition in the industry leads to a decline in gross profit margin.