Core ideas:
The company announced its semi-annual report for 2021: revenue reached 1.035 billion yuan in the first half of 2021, an increase of 25.93% over the same period last year, mainly because the company seized opportunities for the development of the industry. aviation military business continues to maintain rapid growth and sensor control business is expanding in consumer electronics, smart logistics and other emerging industries. At the profit end, the net profit was 188 million yuan during the reporting period, an increase of 31.23% over the same period last year. The growth rate of homed net profit is higher than that of revenue, which is mainly due to the decrease of fees and the increase of other income during the period. On the balance sheet side, the book value of inventory at the end of the period was 615 million yuan, an increase of 41.63% over the same period last year. The company's accounts receivable at the end of the current period was 796 million yuan, an increase of 13.19% over the same period last year. The company's contract liabilities at the end of the current period were 103 million yuan, down 38.07% from the same period last year.
Core investment logic: (1) Aviation intelligent measurement and control leader, which is expected to benefit from the intelligent and information development of high-end aviation equipment. Hanzhong 101, a subsidiary of the company, is one of the few domestic manufacturers that master the core technology of SSPC secondary power distribution and realize the matching of domestic active service aircraft. at the same time, the company is also the core supplier of domestic cockpit control system and helicopter hanging, which is expected to benefit from the upgrading of high-end aviation equipment. (2) take the force measuring and weighing technology as the core, and make an active layout in intelligent transportation and other fields.
The company's strain measurement and control business mainly covers strain gauges, sensors and instruments. in recent years, it has actively expanded the application of its products in emerging fields, especially in the field of consumer electronics and intelligent logistics. Cooperation with a number of world leading companies and domestic advanced enterprises is expected to benefit from the unmanned and intelligent upgrade opportunities in related application fields. (3) the implementation of equity incentive activates the company's business vitality, and the share buyback shows the company's business confidence.
Profit forecast and investment rating: the 21-23 performance is 0.59 yuan per share, 0.74 yuan per share and 0.88 yuan per share, respectively. Considering the company's leading technological advantages in high-end aviation equipment, the first-mover layout in the civilian field, as well as the upgrading of the aviation market and the development prospect of unmanned intelligence in the civil market, we think it is appropriate to give the company a 22-year 30-fold PE valuation and a "overweight" rating corresponding to a reasonable value of 22.08 yuan per share.
Risk tips: the development of the epidemic is higher than expected; equipment demand is lower than expected; major policy adjustments and so on.