Event
According to the company's semi-annual report, 2020H1 achieved an operating income of 212 million yuan, an increase of 24.49% over the same period last year, a net profit of 31 million yuan, an increase of 17.21 times over the same period last year, and a net profit of 32 million yuan, an increase of 33.42 times over the same period last year.
Comment
1. With the rapid growth of airborne equipment business, the revenue share of 2020H1 airborne equipment development business has increased significantly. The revenue of 2020H1 airborne equipment development business reached 151 million yuan, an increase of 61.28% over the same period last year, and the revenue share reached 70.92%, which increased 16.22pct over the same period last year. In addition, affected by the COVID-19 epidemic, revenue from the aviation maintenance business fell 0.70% from the same period last year, and is expected to improve in the second half of the year; revenue from the measurement and control equipment business reached 163800 yuan, down 98% from the same period last year. Measurement and control equipment is generally delivered and recognized in the second half of the year, and revenue is expected to remain stable for the whole year. On the whole, the rapid growth of airborne equipment business has led to a substantial increase in the proportion of the company's military products and rapid growth in performance.
2. Administrative expenses fell sharply compared with the same period last year, and profits increased sharply compared with the same period last year. 2020H1's administrative expenses decreased by 16.41% compared with the same period last year, mainly due to the strengthening of cost control and the reduction of social security fees granted by the government during the special period of the epidemic; the net profit of returning home increased by 17.21 times compared with the same period last year, mainly due to: 1) the rapid growth of airborne equipment business; 2) most of the military VAT rebates were confirmed in the first half of the year.
3. The volume of military orders is obvious, and the performance growth is expected to continue to exceed expectations, and the new type of military helicopter has entered the stage of accelerating batch production and installation. at the same time, this type of helicopter has broad development prospects in the fields of police use and navigation. The company's airborne equipment is expected to fully benefit; the actual combat system and support vehicles will achieve small batch delivery, and with the strengthening of military combat drills, wholesale production orders can be expected. Pre-bid for a certain type of aircraft interior decoration and other orders, will become the company's new performance growth point. The obvious volume of military products will drive the company's performance growth to exceed expectations.
4. Profit forecast and investment advice: it is estimated that the annual operating income of the company in 2020-21-22 is 728pm 959max 1.239 billion yuan, the net profit of return to the mother is 1.04 pm 1.42pm respectively, and the EPS is 0.41 pm 0.56 pm respectively, and the corresponding PE is 0.75 times that of 43-31-23. In view of the significant improvement in the prosperity of the military industry, the plate valuation center has obviously moved up, giving 40 times reasonable PE. The target price for 2021 is 22.40 yuan, maintaining the "buy" rating.
5. Risk hint: the delivery of military products is not as expected, and the development of new products is not as expected.