Event: the company's 2022H1 realized operating income of 8.499 billion yuan (YoY-9%) and net profit of 1.329 billion yuan (YoY-19%). Among them, the performance of the second quarter improved significantly compared with the previous quarter, and the company's Q2 realized a net profit of 1.318 billion yuan, an increase of 1.306 billion yuan over the previous quarter.
Core focus: 1) the month-on-month improvement in investment performance is obvious, boosting the company's reported performance. Benefiting from the significant rebound in the market at the end of the second quarter, the market value of positions such as AVIC increased significantly, and the company's investment income and fair value changes increased by 58% compared with the same period last year. 2) the performance of financial leasing is sound. AVIC International Leasing 2022H1 contributed 1.01 billion yuan in net profit in the first half of the year, accounting for 43% of the company's total net profit. 3) the performance of the securities business is eye-catching, and the trust business is still in transition. AVIC Securities 2022H1 net profit of 330 million yuan (YOY+26%), leading the performance of the industry. Affected by the transformation of the trust industry, the net profit of AVIC Trust 2022H1 is 760 million yuan (YOY-30%).
Leasing remains sound, and the trust industry is still in the stage of transformation. The 2022H1 leasing subsidiary achieved an operating income of 4.7 billion yuan (YoY+0.3%), contributing 55% of the total operating income, and a net profit of 1.01 billion yuan (YoY+1.83%), with a relatively sound performance. Affected by the deepening of the trust industry and the weak demand for investment and financing in the market as a whole, AVIC Trust 2022H1 achieved an operating income of 1.595 billion yuan (YOY-26%) and a net profit of 757 million yuan (YOY-30%), which is still in the stage of industry transformation.
The financial sector maintained steady growth and the securities performed brightly. 2022H1 Finance subsidiary realized operating income of 909 million yuan (YoY-28%) and net profit of 383 million yuan (YoY+4%). The securities subsidiary achieved an operating income of 1.071 billion yuan (YoY+3%) and a net profit of 331 million yuan (YoY+26%), mainly benefiting from the bright performance of proprietary and investment banks.
The performance of industrial investment continued to improve, and the combination of industry and finance helped the economy. Closely around the aviation industry chain, the company promotes the improvement of industrial financial services, relying on the advantages of the group's industrial chain and financial license, through direct investment and the establishment of industrial funds, focusing on the layout of aviation and military industry-related investment. Recently, with the listing of excellent companies such as AVIC drones and ChaoZhuo Hangke, the results of the company's industrial investment have gradually emerged. With the further promotion of industrial investment business, AVIC is expected to usher in higher performance growth.
Investment advice: buy-An investment rating. We are optimistic that the company will actively take the military industry as a foothold, give full play to the group's own financial and industrial advantages, production and investment, supply chain finance and other businesses are expected to become a new driving force for the steady growth of the company's value. It is estimated that the company's net profit from 2022 to 2024 will be 4 billion yuan, 4.7 billion yuan and 5 billion yuan, respectively, and the 6-month target price will be 3.9 yuan, corresponding to 8.6 times of 2022.
Risk tips: macroeconomic downside risks / operational risks / policy risks
