Events:
The company released its semi-annual performance report for 2021, with operating income of 482 million yuan, an increase of 36.31% over the same period last year, and net profit of 128 million yuan, an increase of 22.02% over the same period last year, deducting 113 million yuan of non-net profit, an increase of 29.44% over the same period last year.
Main points of investment:
Contract liabilities have increased significantly, and performance release is expected. The operating income was 482 million yuan, an increase of 36.31% over the same period last year, and the net profit was 128 million yuan, an increase of 22.02% over the same period last year, deducting 113 million yuan from non-net profit, an increase of 29.44% over the same period last year. The profit growth rate was lower than the revenue growth rate, mainly due to the increase in management expenses and asset impairment losses compared with the previous period, and the reduction of government subsidies and social security deductions. Gross profit margin 48.24%, year-on-year increase 2.16pct, period expense rate 15.09%, year-on-year slightly lower 0.87pct, net profit 26.58%, down 3.11pct. The contract debt is 222 million yuan, an increase of 1077.95% over the same period last year, indicating that the downstream demand is strong, the company has sufficient orders on hand, and the performance release is expected.
The income structure has been continuously optimized and the growth of special refrigeration business has accelerated. In the first half of the year, the company strengthened its market development and expansion, and the revenue of aviation products reached 297 million yuan, accounting for 61.53% of the operating income, an increase of 36.28% over the same period last year. The special refrigeration business strengthened its efforts to tackle key market problems of temperature regulating equipment for naval warships, and realized revenue of 126 million yuan, accounting for 26.04% of business income, an increase of 53.51% over the same period last year. The operating income of maintenance and other businesses reached 60 million yuan, accounting for 12.43% of the operating income, an increase of 10.47% over the same period last year.
The military industry is booming, and the batch production of models has given rise to a broad demand for airborne equipment. At present, there is a big gap between China's military equipment and the United States in terms of quantity and quality, and the national defense strength is seriously inconsistent with our comprehensive national strength. According to "preparing for war" and "realizing the centenary goal of building the army in 2027"
And "basically realize the modernization of national defense and the army in 2035", China's military industry ushered in a high boom, the company's products in the upper and middle reaches of the industrial chain has a unique market competitive advantage, the existing model batch production brings broad demand. In the civil field, domestic large aircraft forensics and mass production are coming, aircraft oxygen system and inerting system and other subsystems use foreign products at this stage, there is an urgent need for localization to solve the neck problem, once the company gets the product airworthiness certificate, it can open the civil market.
The product technology is in the lead in China, and the business division strengthens the market competitive advantage. The parent company, AVIC, divides the business of the company in the industrial chain, so that the company has a monopoly position in the subdivision field. Aviation oxygen system technology has reached the world's leading level and is the exclusive supplier of domestic military aircraft. In the aircraft auxiliary fuel tank market, except for a certain type of aircraft in Sichuan, other aircraft use the company's auxiliary fuel tank; fuel tank inerting system has an important application in the fourth generation aircraft. Special refrigeration products have achieved full coverage of the sea, land, air and space, and occupy a dominant position in the army main battle tank market. at present, the company is working hard to improve the penetration of products in naval equipment, and the company's performance is expected to be further improved.
Profit forecast and investment rating: maintain buy rating. It is estimated that the homing net profit from 2021 to 2023 will be 272 million yuan, 365 million yuan, respectively, and the earnings per share will be 0.67 yuan, 0.90 yuan, 1.22 yuan, respectively, and the PE corresponding to the current stock price will be 49-37-27, maintaining the buy rating.
Risk tips: 1) equipment matching risk; 2) company scale effect and maintenance business progress lower than expected risk; 3) profit lower than expected risk; 4) systemic risk.