Event: recently, the company released its semi-annual report for 2022, with operating income of 2.019 billion yuan, down 24.96% from the same period last year, and net profit of 14 million yuan, down 76.63% from the same period last year.
The gross profit margin has improved, and the business of other aviation products continues to grow. 2022H1 achieved operating income of 2.019 billion yuan, a decrease of 24.96% over the same period last year, mainly related to the decrease in trainer business income. The company realized a net profit of 14 million yuan, a decrease of 76.63% over the same period last year, mainly due to a decrease in income and other income of 55 million yuan compared with the same period last year. The company's gross profit margin was 2.55%, an increase of 0.21 pct over the same period last year, and a net profit margin of 2.16%, a decrease of 1.48pct over the same period last year. From the perspective of business: the operating income of the trainer reached 2.019 billion yuan, a decrease of 60.60% over the same period last year. The operating income of non-aviation business reached 4.5712 million yuan, a decrease of 94.87% over the same period last year. The operating income of other aviation products reached 1.537 billion yuan, an increase of 10.67% over the same period last year.
During the period, the expense rate decreased compared with the same period last year, and inventory increased compared with the beginning of the period. 2022H1, the expense rate during the period of the company is 1.95%, which is a decrease of 0.22pct compared with the same period last year, which is mainly due to the change in the merger scope of the company in the previous period. The expenses of International Mechatronics from January to May in 2021 are included in the consolidated statement, but not in the current period. Among them, the rates of sales expenses / management expenses / financial expenses / R & D expenses are 0.25%, 0.96%, 0.95%, 0.21%, respectively, compared with the same period last year + 0.01pct/-0.12pct/+0.05pct/-0.16pct. The company's inventory was 4.157 billion yuan, an increase of 16.13% over the same period last year and 38.42% higher than the beginning of the period, mainly due to an increase in raw materials. The contract liability was 6.468 billion yuan, down 11.33% from the same period last year and 5.56% lower than at the beginning of the period. The net cash flow of the company's operating activities was-101 million yuan, a decrease of 91 million yuan compared with the same period last year. 4.7 billion yuan, not available in this period.
The development of trainer models has been steadily advanced, and major node work has been completed in defense products. Chu Jiao 6 has obtained the TC/PC certificate, according to the market demand, the company is reforming and improving it to enhance its ability to adapt to the civilian market and competitiveness. The development of new basic education is under way to seize the market for screening and basic trainers. At present, the company has made a breakthrough in the research and development of many products of the trainer, injecting new momentum into the follow-up development of the company. Defense products have successfully completed major node work, laying the foundation for further market development.
Investment suggestion: the company is the main R & D and production base of trainer aircraft in China. At present, the main products are CJ6 primary trainer, K8 basic trainer, L15 advanced trainer, and defense products.
China wants to "build a weapons and equipment system with the fourth-generation equipment as the backbone and the third-generation equipment as the main body". With the accelerated installation of the third-and fourth-generation aircraft, the relevant flight training tasks will be significantly improved, and the company's trainer business is expected to grow steadily. In addition, the strong demand for the company's defense products is expected to become the main starting point of the company's performance growth. We forecast that the company's net profit from 2022 to 2024 will be 1.18 yuan 1.48 billion yuan respectively, and the corresponding PE will be 153.6 pm 122.2 pm 95.8, which will be covered for the first time and given a "overweight" rating.
Risk hint: the pace of aviation equipment delivery slows down, and the supply chain is affected by risk factors such as the epidemic.