Event: the company announced that in 2022, H1, the company's operating income was 366 million yuan (+ 61.94%), 142 million yuan (+ 32.53%), net profit 137 million yuan (+ 29.14%), gross profit 55.78% (- 7.48pcts), net profit 38.93% (- 8.64pcts).
The assembly business of the department has been carried out in an orderly manner, and the revenue has increased steadily.
During the reporting period, the company realized operating income of 366 million yuan (+ 61.94%), net profit of 142 million yuan (+ 32.53%), and non-return net profit of 137 million yuan (+ 29.14%). The gross profit margin is 55.78% (- 7.48pcts) and the net profit margin is 38.93% (- 8.64pcts). We think the reasons are mainly concentrated in the following three points:
Changes in ① 's business model and product structure: the assembly business of the company's components is carried out in an orderly manner, which forms a strong support for revenue growth, but some of the business models are transformed into full-process business, and raw materials and groups / accessories need to be purchased by themselves. in the short term, the pressure on the cost side has an impact on the net profit and gross profit margin. Because ② has a certain cycle from order to delivery, delivery to settlement, and the situation of first delivery and then signing the contract, there may be a big difference, which affects the fluctuation of gross profit margin. ③ product price adjustment: with the further optimization of the military procurement mechanism, the overall price shows a slight decline, slow decline trend, the company's gross profit margin is also affected by this, a decline, but in the long run, the company will also continue to optimize product structure, process business transformation and upgrading, new business development and internal quality reduction cost efficiency and other ways to further strengthen its comprehensive competitiveness.
In terms of expenses, the company's three-fee expense rate is 1.66% (- 1.93pcts), which decreases significantly, the management expense rate 2.45%-1.22pcts), the company's business strategy is optimized, the management efficiency continues to improve, and the expense rate decreases.
The sales expense rate is 0.13% (- 0.03pcts), the financial expense rate is-0.92% (- 0.68pcts), the capital structure is optimized and the financial expenses are further reduced.
During the reporting period, the company's R & D expenditure of 11.2186 million yuan (+ 55.94%) increased significantly, and the company continued to increase technology R & D testing and testing, while actively docking external resources. for example, through joint R & D innovation and production practice of ARJ electroplating special process with Libherr, the imported technology has been localized. Up to now, the company has 36 patents, including 3 invention patents and 33 utility models. Another 12 invention patents and one utility model are under examination.
Q2's return net profit reached a new high, and the effect of improving quality and reducing cost was obvious.
2022Q2 achieved its best quarterly results, with quarterly revenue of 189 million yuan (+ 60.88%) and highest quarterly net profit of 76 million yuan (+ 26.03%). Gross profit margin (58.989%) and net profit rate (40.44%) were significantly higher than those of 2022Q1 (gross profit margin 52.36% dagger 6.62pcts; net profit 37.32% jade 3.12pcts) and 2022Q4 (gross profit margin 44.08% cantilever 14.90pcts; net profit 32.20% 8.20pcts). Under the influence of multiple factors such as product price adjustment and cost-side pressure of the whole process business model, the company further improves quality and efficiency, promotes marginal cost improvement and profitability by improving process innovation ability and production quality management ability. to achieve the benign development trend of "exchanging price with quantity and making profit with efficiency".
Tamp the advantage foundation, stabilize the core resources, open the business to increase the space ① CNC machine.
The company's CNC precision machining business mainly focuses on the processing and manufacturing of key, important and complex parts of aviation parts, and downstream covers a variety of military aircraft, civil aircraft parts, engine parts and aerospace large-scale structural components, etc. it is a "gold supplier" of aircraft manufacturing units under the aviation industry, as well as an "excellent supplier" of civil aircraft.
As the largest supplier of key, important and complex parts in a main engine factory under the aviation industry, the company is in a dominant position in the industry in high-precision blind hole processing and complex deep cavity processing of titanium alloy, high-strength steel and other materials. and the company continues to improve its processing efficiency and stability from process and technological innovation, with a product quality rate of more than 99.6%.
② special process treatment
At present, the company has more than 10 kinds of special processes and physical and chemical test capabilities, such as anodizing, non-destructive testing, pickling, heat treatment and so on. it is one of the few private enterprises in the industry with the whole process of special process for aviation structural parts. As the only combat partner in the field of heat meter processing in a mainframe factory under the aviation industry, in addition to some of its own mechanical products, the company also undertakes the special process processing business of other customers in the aviation manufacturing market, including Shaanfei, Hangfa Technology, and other customers in the aviation manufacturing field.
③ component assembly
The company began component assembly capacity construction in 2017, from the initial assembly of multiple models, and then focused on strengthening the assembly capacity of large components in 2020. In 2021, the company has completed the assembly of complex central parts of a certain type of UAV and the overall delivery of the fuselage section. Up to now, the company has successfully carried out a certain type of UAV, a number of military aircraft and civil aircraft assembly business. Relying on the in-depth development from CNC machine plus to component assembly, the company realizes effective coordination with the internal and external of the mainframe factory, and further breaks the limitations of the original manufacturing capacity. Complete the transformation and upgrading of the "tripod" of key and important parts precision manufacturing, special technology and component assembly, and laid a good foundation for further upgrading the level of follow-up business.
Focusing on the improvement of the ability of supply chain management, the advantage of full-process manufacturing highlights that the company, as a high-quality enterprise with core key technology, equipment and high quality control level, has gradually extended from a single CNC precision machining process to the upper and lower reaches of the industrial chain. has formed from the "raw material CNC precision machining special process fuselage / body assembly" full-process manufacturing capability.
In its international direct business and part of the whole assembly process business, the company has realized the self-procurement of designated raw materials and components, taking the assembly of parts in the complex central section of a certain type of UAV and the overall delivery of the fuselage segment as an example. In the process of developing business, the corresponding role positioning of the industrial chain is also from the previous "single-link parts processing" outsourcing suppliers. Rise to the "overall fuselage assembly delivery" system integration supplier. In the process of gradually establishing its own supply chain system, the company continues to optimize and accumulate from many aspects, such as production plan management, production process improvement, supplier management, procurement cost control and so on, so as to further strengthen its core competitiveness and create competition barriers.
Overall, as the first supporting unit to promote the full-process manufacturing model among the four assembly units identified by a mainframe factory, the company took the lead in developing and establishing its own supply chain system, in this process, with the continuous optimization and accumulation of production planning management, production process improvement, supplier management, procurement cost control and other aspects, the company's core competitiveness has been continuously strengthened and competition barriers have been further enhanced.
The steady progress of fund-raising projects has further opened up the capacity construction planning of the growth space company:
The intelligent manufacturing center for aviation parts has been carried out in an orderly manner as planned. during the reporting period, the construction of the main structure has been completed and procurement including major equipment has been started. The progress of the project has reached 22.93% and is expected to be put into production in the first half of 2023. After the project reaches production, the company's existing production capacity will be greatly improved, and it is expected that the CNC production capacity will be increased by 1.232 million man-hours per year; in terms of special process treatment business, the company expects to expand special process capacity by adding key equipment and optimizing process plans, and the business growth ceiling is expected to be further raised.
Investment advice We believe that:
Due to the influence of product structure, price adjustment and other factors, the company's gross profit margin has declined to a certain extent, but with the gradual stability of the company's product structure, the company's business scale and efficiency are expected to be improved. Relying on the in-depth development from CNC machine plus to part assembly, the company realizes effective coordination with the inside and outside of the mainframe factory, and further breaks the limitations of the original manufacturing capacity. Complete the transformation and upgrading strategy of "tripod" with equal emphasis on precision manufacturing of key and important parts, special technology and assembly of department components, and laid a good foundation for further upgrading the level of follow-up business. As the first supporting unit to promote the whole process manufacturing mode among the four assembly units determined by a mainframe factory, the company took the lead in developing and establishing its own supply chain system, in this process, with the continuous optimization and accumulation of production planning management, production process improvement, supplier management, procurement cost control and other aspects, the company's core competitiveness has been continuously strengthened, and the competition barrier has been further enhanced.
Based on the above point of view, we estimate that the company's operating income from 2022 to 2024 will be 883 million yuan, 1.2 billion yuan and 1.628 billion yuan respectively, the net profit will be 330 million yuan, 406 million yuan and 498 million yuan respectively, and the EPS will be 1.13,1.39,1.70 yuan respectively.
Risk tips: the progress of product project research and development is not as expected, the macro environment is depressed, the risk of raw material price fluctuations affecting gross profit margin, the risk of intensified market competition, and so on.