Main points of investment
The company released its semi-annual report for 2021: revenue of 1.035 billion yuan, an increase of 25.93% over the same period last year; net profit of 188 million yuan, an increase of 31.23%; net profit of 180 million yuan, an increase of 27.54% over the same period last year; net cash flow from operating activities was-93.4686 million yuan, compared with-57.8033 million yuan in the same period last year, a decrease of 3566.53 yuan over the same period last year. From a quarterly point of view, 2021Q2, the company achieved revenue of 619 million yuan, an increase of 24.13% over the same period last year and 48.76% month-on-month growth; the net profit returned to its mother was 147 million yuan, up 34.86% from the same period last year and 265.63% from the same period last year.
In terms of products, during the reporting period, the revenue of the company's aviation military products was 248 million yuan, an increase of 64.10% over the same period last year, with a gross profit margin of 35.43%; the revenue of the sensor control business was 534 million yuan, an increase of 41.31% over the same period last year, and the gross profit margin was 35.26%; the revenue of the intelligent transportation business was 218 million yuan, a decrease of 18.66% over the same period last year, and the gross profit margin was 45.32%.
During the reporting period, the company's overall gross profit margin was 37.94%, a decrease of 2.53pct over the same period last year, including a gross profit margin of 38.80% in the second quarter, a decrease of 3.82pct over the same period last year, an increase of 2.14pct over the first quarter, and a net profit rate of 18.58%, an increase of 0.82pct over the same period last year.
During the reporting period, the company's expenses during the period were 182 million yuan, an increase of 8.78 percent over the same period last year, and expenses accounted for 17.57 percent of revenue, a decrease of 2.77 pct over the same period last year. R & D expenses were 48.97 million yuan, an increase of 3.27 percent over the same period last year, accounting for 4.73 percent of operating revenue and a decrease of 1.04pct over the same period
During the reporting period, the company's receivables totaled 893 million yuan, an increase of 32.40% over the beginning of the period; inventory was 615 million yuan, an increase of 41.63% over the same period last year, and an increase of 3.70% over the beginning of the period. During the reporting period, the company's accounts receivable turnover rate was 1.51 times, an increase of 0.11 times over the same period last year, and the inventory turnover rate was 1.06 times, a decrease of 0.02 times over the same period last year.
The policy dividend of Shijiazhuang Huayan has been gradually released due to the upgrading of industry standards. the decrease in vehicle inspection orders this year has led to a decline in income. In the first half of 2021, the operating income was 237 million yuan, down 14.06 percent from the same period last year, and the net profit was 39.927 million yuan, down 28.51 percent from the same period last year.
During the reporting period, the amount of related transactions of goods and services sold by the company to the aviation industry or its subsidiary units is expected to be 500 million yuan, an increase of 25% over the same period last year, and the actual amount actually occurred was 222 million yuan, an increase of 86.96% over the same period last year.
As of July 31, 2021, the company has bought back a total of 4691000 shares of the company through a special securities account for stock repurchase, accounting for about 0.79% of the company's current total share capital, with a total transaction amount of 60813062.00 yuan (excluding transaction fees). The shares repurchased this time will be used for employee stock ownership plans or equity incentives.
We adjust our profit forecast according to the latest earnings report, and we expect the company's 2021-2023 net profit to be 3.36x4.74 / 607 million yuan respectively, and EPS is 0.57x0.8 pound 1.03 yuan per share, corresponding to the closing price of PE on August 26, which is times that of 35-25-19, maintaining the "prudent overweight" rating.
Risk hint: the expansion of emerging areas is not as expected; the progress of military development and procurement is not as expected.