Focus on aviation equipment supporting business, the company is full of orders. Jianghang equipment is the core subordinate enterprise of AVIC airborne plate, which is mainly responsible for the research and manufacture of aviation oxygen system, airborne fuel tank inerting protection system and aircraft auxiliary fuel tank and other products. the special supporting relationship makes the company an absolute leader in the aviation market segment. In recent years, the company has greatly improved its operating efficiency by withdrawing from its non-core main business, streamlining personnel, introducing war investment and employee stock ownership and other ways of mixed system reform. In 2021, the company realized operating income of 953 million yuan, an increase of 14.72% over the same period last year, and a net profit of 231 million yuan, an increase of 19.23% over the same period last year. The military track has the characteristic of fixing production on demand. At the end of 21 years, the company's inventory was 685 million yuan, an increase of 68.87% over the same period last year, reflecting the prosperity of Jianghang equipment orders.
The first step into the aircraft train is just around the corner, and the aviation supporting business will meet the development opportunities. The 14th five-year Plan period is the key period to achieve the centenary goal of the founding of the army in 2027. China's military aircraft is currently in an accelerated release period, and the iterative speed is expected to be further improved. As the only manufacturer of aviation oxygen system in China, and as the supplier of inerting protection system of airborne fuel tank and auxiliary fuel tank of downstream military aircraft, the company will benefit from the accelerated assembly of military aircraft. we expect that the corresponding market space for the company's aviation product business will reach about 29 billion yuan during the 14th five-year Plan period.
Military and civil refrigeration business and aerospace business have first-mover advantages and full potential for diversified development. The company's military special refrigeration equipment has achieved 60% of the army market share, and gradually achieved military coverage, while the wholly-owned subsidiary Swan Refrigeration actively opened up the civil industrial special air conditioning and special car air conditioning market; in addition, the company's sensitive components business in the field of manned spaceflight, the gross profit margin has been maintained at 50% 60% in the past two years, and the number of orders for this business has gradually increased, helping the enterprise to develop in the future.
Investment suggestion: we expect that the company will achieve a net profit of 3.39 trillion yuan in 22-24 years, and the corresponding EPS will be 1.85 yuan per share, respectively. Taking into account the certainty of the company's performance and the monopoly position in the subdivision track, we give Jianghang equipment a 22-year target PE 36 times, corresponding to the target price of 30.24 yuan per share, covering for the first time and giving a "buy" rating.
Risk tips: 1. Expenditure on defense equipment fell short of expectations. The installation and iterative speed of military aircraft are not as fast as expected. The demand of civilian refrigeration business is lower than expected, 4. 5%. The competition pattern of special refrigeration business has deteriorated.