Event: according to the company's semi-annual report for 2022, 22H1 achieved operating income of 366 million yuan, an increase of 61.94% over the same period last year, a net profit of 142 million yuan, an increase of 32.53% over the same period last year, and a non-net profit of 137 million yuan, an increase of 29.14%. Single Q2 realized operating income of 189 million yuan, an increase of 60.88% over the same period last year, a net profit of 76 million yuan, an increase of 26.03% over the same period last year, and a non-net profit of 74 million yuan, an increase of 23.02%. The net profit of returning home reached an all-time high in a single quarter.
Comments:
During the period, the expense rate further decreased and accounts receivable increased: 22H1's comprehensive gross profit margin was 55.78%, which was lower than the same period last year. We think the more likely reason is the change in business structure. The company used to account for a large proportion of the revenue from CNC precision machining business, which adopts the processing mode of supplied materials, so it has a higher gross profit margin; with the expansion of the company's business to the lower reaches of the industrial chain, the proportion of revenue from assembly business is gradually increasing, and the business involves external procurement of parts and components, the gross profit margin will be lower than CNC precision processing, resulting in changes in the company's comprehensive gross profit margin. In terms of period expenses, the company paid attention to R & D investment, and 22H1 R & D expenses increased by 55.94% compared with the same period last year; the growth rate of sales expenses and management expenses was significantly lower than that of income, and the increase in interest income from bank deposits reduced financial expenses over the same period last year, so the expense rate decreased 2.04PCT over the same period last year, showing a downward trend. Accounts receivable increased by 75.79% at the end of June compared with the beginning of the year, reflecting the growth of downstream demand to a certain extent.
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.
Profit forecast, valuation and rating: the company's 22H1 business continues to develop rapidly, maintaining the company's 2022-24 return net profit forecast of 3.57 shock 488 pounds 642 million yuan, EPS 1.22 pounds 1.66 pounds 2.19 yuan, the current share price corresponding to the PE is 27max 20 pounds 15X. Under the 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 the market, the company has laid out ahead of schedule to achieve the full-process manufacturing capacity of "CNC precision machining-special process processing-component assembly". And continue to improve production capacity to match the growing demand downstream, we believe that the company's production scale and profitability are expected to continue to improve, to maintain the company's "buy" rating.
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.