The company issues the 2021 annual report and the first quarterly report of 2022:
In 2021, the company achieved annual revenue of 614 million yuan, an increase of 102.12% over the same period last year, a net profit of 255 million yuan, an increase of 86.47% over the same period last year, and a non-return net profit of 249 million yuan, an increase of 87.70% over the same period last year.
2022Q1, the company achieved revenue of 177 million yuan, an increase of 63.10% over the same period last year, a net profit of 66 million yuan, an increase of 40.95% over the same period last year, and a deduction of 63 million yuan for non-return net profit, an increase of 37.14% over the same period last year. We believe that the increase in the proportion of UAV assembly business carried out by self-employed raw materials in 2021Q4 and 2022Q1 revenue is the main reason why the company's revenue growth rate is higher than that of net profit growth.
Expense side: the company's sales expenses in 2021 were 834900 yuan, + 47.53% compared with the same period last year, mainly due to the increase in the company's business and transportation expenses; the management expenses were 21 million yuan,-4.22% year-on-year; and the financial expenses were-1.2714 million yuan,-279.72% year-on-year. The main reason is the increase in deposit interest income. The R & D expenditure was 17 million yuan, which was + 53.99% compared with the same period last year, mainly due to the increase in investment in technology R & D testing and testing.
For the whole of 2021, the rate of expenses during the sales period was 6.16%, a decrease of 4.86 pcts position 2022Q1 compared with the same period last year. Due to the decrease in the rate of management expenses and the increase in interest income, the rate of expenses during the period continued to drop to 3.32%, a record low.
We believe that the substantial improvement in the company's performance in 2021 and 2022Q1 is mainly due to the sustained and rapid growth in the demand for aviation equipment construction. On the one hand, the company's new precision CNC machining capacity has been released one after another, on the other hand, at the end of the industrial chain, the company is gradually realizing the transformation from a single process / model to full military and civilian coverage of multiple processes, the utilization rate of heat meter special process capacity has steadily increased, and the parts assembly business has begun to deliver and settle accounts. The company's aviation parts full-process business advantages are gradually reflected, with the gradual expansion of multi-process business in the industrial chain, the company's performance is expected to enter the track of rapid growth.
The company has upgraded from a single process / model to a multi-process full-process business of military and civil aviation, and the UAV assembly business is a new driving force. The company is working hard to build the full-process business capability of "CNC precision machining-special process processing-component assembly". In the process of steady progress, and has passed the mainframe factory and related customers' audit and confirmation:
1. CNC precision machining business: focus on aviation parts key parts, important parts, complex parts and small batch flexible production capacity construction.
Xindu branch / subsidiary CNC intelligent manufacturing project has been put into production in 2021 and is gradually releasing CNC precision machining capacity. The company is the largest private supplier to a main engine factory under AVIC, and it is the supplier with the largest proportion of key, important and complex parts.
two。 Special process business: the company raised funds to invest in the construction project of heat meter treatment and non-destructive testing production line in 2017, began to carry out surface treatment business in the second half of 2019, and steadily increased the utilization rate of heat meter special process capacity from 2020 to 2021. In 2021, the company will actively expand military / civil aviation, aviation and other multi-variety and multi-model heat meter processing business, while upgrading the main production line facilities to optimize production efficiency and improve capacity utilization. The company is one of the few private enterprises with the whole process capability of special technology in China.
3. Component assembly business: it has passed the examination of assembly qualification of military aircraft, obtained the assembly qualification of landing gear assembly of Saifeng in France, and has carried out assembly business of a certain type of UAV, a certain type of military aircraft and several civil aircraft departments. During the reporting period, the assembly of parts in the complex center section of a certain type of UAV and the overall delivery of the fuselage section of the aircraft were successfully completed, and the whole process capability of machining parts to large parts was upgraded.
The company has mastered many core technologies in the field of finishing, such as high-precision blind hole machining, complex deep cavity machining and so on, and is in an obvious dominant position in the industry. On the client side, the company is the only strategic partner and one of the four designated assembly units in the field of machining and heat meter processing in a mainframe factory under AVIC Industry. and it is the first private enterprise to promote the whole process business of "raw materials-CNC precision machining-special process processing-component assembly". We believe that, as a comprehensive aviation manufacturing base for military and civil aircraft in China, the company is in the process of accelerating upgrading from a single process / aircraft to multi-process and full-process business of military and civil aviation, and the company's related products are expected to achieve rapid expansion with the growth of demand. performance is expected to grow rapidly with this process.
Actively promote the work of raising investment and expanding production to improve the level of intelligent manufacturing
In August, 2021, the company raised a total amount of 500 million yuan to promote the construction of an intelligent manufacturing center for aviation parts. In 2020, the company has a theoretical production capacity of 112.98 million man-hours and a capacity utilization rate of 87%. The fund-raising project is expected to increase the theoretical production capacity of CNC machining by 1.232 million man-hours per year, while increasing automation and intelligent systems such as automation equipment and control systems, testing equipment automation and control systems, Internet of things and control systems. The project is expected to be put into production in April 2023, with a production period of 3 years. After reaching production, it is expected to increase annual revenue by 234 million yuan and annual net profit by 60 million yuan. We believe that the landing of the additional investment project will comprehensively improve the company's intelligent manufacturing level and enhance the company's core competitiveness on the basis of expanding the company's existing business capacity. Further expand the company's domestic large aircraft, military main battle equipment and military UAV business capacity.
Profit forecast: to sum up, we believe that the company's military business may fully benefit from the great-leap-forward equipment development process of the "14th five-year Plan", and is expected to continue to grow rapidly in the next 3-5 years. Civil products business is expected to achieve further volume with the gradual landing of large aircraft projects in China. At the same time, considering the continuous progress of the company's military and civilian coverage, multi-process and full-process layout, it is expected that the performance will grow rapidly on this basis. Based on this assumption, we increase the company's forecast revenue for 2022-2023 from 80,096 million yuan to 920pm 1.245 million yuan, and 2024 forecast revenue to 1.719 billion yuan, corresponding to the homing net profit of 3.78pm 515pm 698 million, and the corresponding PE is 27.50pm, 20.22x14.92x.
Risk hints: the risk of the decline of market competitiveness; the risk of fluctuations in the company's military business; the risk of raw material supply; and the risk that the progress and returns of fund-raising projects fall short of expectations.