Received China Southern Airlines Company's "transaction notice", with an estimated transaction value of 86.548 million yuan.
On October 13, the company announced that it had recently received a "transaction notice" from the training and Management Department of China Southern Airlines Company Flight Corps, which confirmed that Oriental Fashion Navigation was the transaction unit of China Southern Airlines Company's domestic flight cadets' initial training course training service. The estimated transaction amount is 86.548 million yuan (the specific amount is based on the contract actually signed).
Prior to this, the company successively signed flight training contracts with China Southern Airlines and Xiamen Airlines, with a total amount of about 82 million yuan; at present, the total order on hand is about 160 million yuan.
The company has won a number of pilot training orders for China Southern Airlines. On the one hand, it has fully verified its qualification and ability in the field of flight training; on the other hand, it will effectively increase its performance in the future. at present, the domestic pilot training market is in the early stage of development and has a good development prospect.
In the future, the pilot training of the domestic Aviation Department may effectively promote the development of related industries, and Oriental Fashion will directly benefit. According to the official account of pilot training, according to the relevant data of civil aircraft pilots in the CAAC cloud license desktop system, as of September 28, 2020, the total number of driver licenses in China is 71270, with an annual increment of about 10%. The release of this part of demand in China will effectively promote the development of related industries.
Dongfang Fashion currently has two airports in operation, Xihua Airport and Texas Airport. In the construction of Civil Rights Airport, the company's future production capacity will be effectively released. High barriers to aviation training, 2B business and related to safety, so the price sensitivity is low, the company has a first-mover advantage and a better competition pattern, the future will better benefit from aviation department pilot training and consumer high-end demand, broad market prospects.
Raise earnings forecasts and give buy ratings
The company belongs to the motor vehicle driver training industry, which is currently leading the innovation and upgrading of the industry, empowering by science and technology, from traditional labor-intensive enterprises to a new generation of intelligent driving training projects that are efficient and friendly, energy-saving and environmental protection.
Considering the recovery of automobile driving training business of Q3 company and the good development of aviation training business, we raise the company's EPS from 0.27 yuan to 0.32 yuan in 2020, 0.46 EPS to 0.52 yuan in 21-22, and PE to 63x, 43x and 38x respectively.
Risk hints: uncertainty in the signing, amount and terms of the contract; less than expected enrollment; loss of core executives
