The core supplier of the aviation supporting industry, with a multi-level layout of the industrial chain. Based on the aviation field, the company has successively laid out businesses such as aircraft ground support equipment, aircraft test and inspection equipment, aircraft process equipment, aircraft parts processing, and aircraft parts assembly. Currently, the company has an advantage in military aircraft ground support equipment and parts equipment business, and is the only listed company in the field of aviation ground support equipment.

Automated aviation ground support equipment will greatly improve the efficiency of military support. A trailer truck is one of the important ground support equipment in missile weapon systems. It is a type of electromechanical, hydraulic, automatic, and semi-automatic equipment. Compared with manual, it will greatly shorten take-off preparation time and improve fighter loading efficiency. Engine installation vehicles, APU installation vehicles, electric jacks, etc. will improve the efficiency of fighter maintenance and repair.

OEMs have released demand to the outside world, and the aviation parts industry has ushered in important development opportunities. Aviation parts processing and manufacturing is located in the midstream of manufacturing in aircraft R&D, manufacturing, and security. It is mainly responsible for processing and assembling upstream raw materials, blanks, etc. into parts. In the context of the accelerated installation of new aircraft and the rise of the domestic civil aviation aircraft industry, domestic OEMs will focus on design, assembly and test flight operations to accelerate the externalization of aviation parts processing business.

[Investment advice]

We expect the company's revenue for 2022-2024 to be 362/405/466 million, respectively, with a year-on-year growth rate of 18.50%/12.16%/12.36% respectively; net profit attributable to the parent company in 2022-2024 is 0.80/0.82/84 billion yuan respectively, and EPS is 1.02/1.05/1.07, respectively, and the corresponding PE is 36.05 /35.06/34.32 times respectively, maintaining the “increase in holdings” rating.

[Risk Reminder]

1. Aviation supporting equipment is not as fast as expected

2. Capacity expansion falls short of expectations

3. Overseas geopolitical shocks