Event: on August 17, Andaville released its semi-annual report for 2020, with operating income of 212 million yuan, an increase of 24.49% over the same period last year. Net profit belonging to shareholders of listed companies was 31.1156 million yuan, up 1721.80% over the same period last year. Net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses was 31.6759 million yuan, an increase of 3342.43% over the same period last year.
Mid-term performance explosive growth, the scale of the main aviation industry expanded rapidly. In the first half of 2020, under the impact of the epidemic in the civil aviation sector, the company achieved an operating income of 212 million yuan, a substantial increase of 24.49 percent over the same period last year.
The revenue from the development of airborne equipment in the core business was 151 million yuan, up 61.28% from the same period last year to 70.92%, mainly due to helicopter protective armor and transport aircraft kitchen and bathroom interior products, which successfully won the bid and signed contracts. Aviation maintenance business realized revenue of 56 million yuan, down 0.70% from the same period last year, accounting for 26.22% of the main business income.
In addition to the lead of the main business, the company received tax rebate income of 23.8985 million yuan in the first half of 2020, an increase of 19.2029 million yuan over the same period last year; and accounting standards adjustment, if the first half of 2019 net profit was 4.7691 million yuan, the net profit for the first half of 2020 increased by 552.44% compared with the same period last year. If we exclude the influence of these two factors, that is, assuming that the tax rebate income of the company during the reporting period is the same as that of the same period last year, and the return net profit of the same period last year is 4.7691 million yuan, the company's return net profit in the first half of 2020 still increased significantly by 150% compared with the same period last year. And the company deducted non-return net profit of 31.6759 million yuan, an increase of 3342.43% over the same period last year, indicating the strong endogenous growth of the company.
The product structure has been adjusted and the rate has dropped sharply during the period. During the reporting period, the company's overall gross profit margin dropped to 46.66% from 53.07% in the same period last year. We believe that this is mainly due to the substantial increase in helicopter protective armor and transport aircraft kitchen and bathroom interior products delivered by the main manufacturer of airborne equipment, and the change in product structure has led to a decline in gross profit margin. During the period of the company, the rate fell sharply, falling 11.24 percentage points to 41.11% from 52.35% in the same period last year, of which the rate of management expenses fell sharply by 10.97 percentage points compared with the same period last year, and financial expenses increased significantly due to the growth of short-term borrowing.
Procurement continued to be active, and inventories increased by 31.81% compared with the same period last year. As of the first half of 2020, the company's accounts receivable increased by 54.38% year-on-year, accounting for 9.36 percentage points of total assets to 42.67%, and the company's accounts payable also increased by 44.94%. Inventory increased by 31.81% year-on-year, accounting for 1.63 percentage points to 18.99% of total assets, of which raw materials and finished goods accounted for a relatively high proportion, accounting for about 79%. It is also a project with a larger growth than at the beginning of the period. we think this shows that the company's production and procurement activities are still active; in addition, issued goods increased by 25.23% year-on-year.
The company arranges the airborne equipment track, which is wide and long. The company's core business is helicopter anti-crash seats, while the layout of other aviation airborne equipment development, aviation maintenance, measurement and control equipment development and other fields, the track is wide and long.
Compared with its competitors, the company's business gross profit margin is at a high level, and in recent years, it has continued to increase R & D investment and personnel reserves, and two new office plants have been added and put into operation in 2018. With the gradual commissioning of the fund-raising project, the company's technical strength is expected to be further enhanced.
Profit forecast and investment advice: we predict that the company's operating income from 2020 to 2022 will be RMB 751 million, an increase of 35.89%, 28.45% and 27.63%, respectively. The net profit of return to the mother is RMB 1.32 billion, an increase of 36.80%, 32.30% and 32.32% over the same period last year. The corresponding EPS from 2020 to 2022 is 0.39 Universe 0.52 per cent, and the corresponding PE is respectively times that of 41-31-23. Maintain a "buy" rating.
Risk hints: the growth of military expenditure is not as expected; the growth of accessories maintenance business of the Ministry of Civil Aviation is not as expected; the results of fund-raising projects are not as expected; COVID-19 's epidemic situation has a negative impact on the company's product delivery or daily operation.