Event: the company released its 2021 annual report, with an annual operating income of 614 million yuan, an increase of 102.12% over the same period last year, and a net profit of 255 million yuan, an increase of 86.47% over the same period last year.
Comments:
Revenue doubled and component assembly business achieved a breakthrough: in 2021, the company continued to steadily promote various businesses, the new production capacity of precision CNC processing was released one after another, the utilization rate of special process capacity of heat meters increased steadily, and the parts assembly business began to deliver and settle accounts. The advantages of the whole process business of aviation parts are gradually reflected, and the revenue increases by 102.12% compared with the same period last year. The company achieved a breakthrough in component assembly business, completed the assembly of components in the complex central section of a certain type of UAV, and completed the overall delivery of the fuselage section of the model. It is expected that with the increase of the scale of component assembly business in the future, the contributed revenue and profit level are expected to continue to rise.
Take advantage of the capital market to speed up the production and construction of investment projects: in 2021, the company will complete 500 million yuan of refinancing by issuing shares to specific objects, of which the total investment of the aviation parts intelligent manufacturing center project is 440 million yuan, and the infrastructure construction cycle is 2 years. It was partially put into production in the third year and reached production in the fifth year. According to the company's estimate, the annual sales income will be 234 million yuan and the net profit will be 60 million yuan. In addition, in September 2021, the company's Xindu branch / subsidiary CNC business was put into operation, and the CNC production capacity was gradually released; the aviation intelligent manufacturing and system integration center project completed the main structure construction on schedule and began to purchase major equipment. The continuous commissioning and construction of new capacity has laid a solid foundation for the double upgrading of the company's capacity industry.
The high growth of 22Q1 continued: the company also released its quarterly report for 2022. 22Q1 achieved operating income of 177 million yuan, an increase of 63.10% over the same period last year, and a net profit of 66 million yuan, an increase of 40.95% over the same period last year. The trend of rapid growth continues.
Earnings forecast, valuation and rating: the company's net profit in 2021 exceeds our previous forecast. Considering the company's sustained rapid development, the company raised its profit forecast for 2022-23 to 357 million yuan / 488 million yuan, and forecast a profit of 642 million yuan in 2024. The EPS for 2022-24 is 1.46 / 2.00x2.63 yuan respectively, and the current share price corresponds to 31 PE 2317X respectively. Under the market background of the increase in the number and upgrading of domestic military aircraft, the increase in demand for civil aircraft and the gradual localization of domestic aircraft, the company has laid out ahead of schedule, realized the full-process manufacturing capacity of "CNC precision machining-special process treatment-component assembly", and continued to increase production capacity to meet the growing demand downstream. We believe that the company's production scale and profitability are expected to continue to improve. Upgrade the company's rating to "buy".
Risk tips: the risk that the demand of the national defense and civil aviation market is affected by national policies and macroeconomic fluctuations; the risk of intensified market competition; the risk of a decline in gross profit margin; and the risk that project construction is less than expected.