This Friday (May 19), “Aerospace Huanyu”, a company listed on the Science and Technology Innovation Board, asked for a quote.

Aerospace Huanyu (688523): The company's main business focuses on the development and manufacture of aerospace products, aerospace process equipment, aviation products, and satellite communication and measurement and control testing equipment in the aerospace field. The company achieved operating income of 266 million yuan/306 million yuan/401 million yuan respectively in 2020-2022, YOY was 31.38%/15.20%/31.22% in that order, and the three-year revenue compound annual growth rate was 25.70%; achieved net profit of 87 million yuan/83 million yuan/123 million yuan, YOY was 30.36%/-4.13%/47.19% in that order, and the three-year compound annual growth rate of Fumo's net profit was 22.53%. In the latest reporting period, 2023Q1 achieved operating income of 25 million yuan, an increase of 206.50% over the previous year; it achieved net profit of 106 million yuan, an increase of 180.54% over the previous year. According to preliminary forecasts, the company expects to achieve net profit of 150.00 to 2,000.00 million yuan from January to June 2023, an increase of 21.26% to 61.68% over the previous year.

Investment highlights: 1. The company is one of the earliest domestic private enterprises engaged in the aerospace field and carried out industrial promotion and application, and is currently in a leading position among private enterprises. The company has been deeply involved in the aerospace field for more than 20 years, and is one of the few private aerospace component manufacturers in China that also has comprehensive supporting capabilities for design, manufacture and inspection. With strong technical strength and industrialization advantages, the company has become one of the main suppliers of research institutes and overall units under large central enterprises such as aerospace technology, China Aviation Industry, China Aviation Development, China Telecom, and COMAC. In addition, it has also participated in major national space projects such as the Beidou satellite navigation system project, high-resolution Earth observation system project, deep space exploration projects such as lunar exploration and Mars, manned space projects such as Shenzhou, etc., and high-capacity communication satellites. 2. The company's core technical team, headed by Mr. Li Changjiang, has a rich industrial background. Mr. Li Changjiang, the chief engineer of the company, is majoring in aerospace science and technology and has been involved in overall spacecraft design research for 36 years. He has worked as an engineer in the 501 department of the Fifth Aerospace Industry Research Institute, Deputy Director, and Model Deputy Chief Commander of the Research and Production Department, and Chief Engineer of the Project Management Department of the Fifth Research Institute of Aerospace Science and Technology Group, and Model Deputy Commander and Chief Commander of the General Design Department; he has also received honorary awards such as “Individuals who have made outstanding contributions to the construction of the Beidou-2 spacecraft”. He is an expert who has received special allowances from the State Council government.

Comparison of listed companies in the same industry: Eleda, Triangle Defense, Guanglian Airlines, Xinxing Equipment, and Mai Xinlin were selected as comparable listed companies of Aerospace Huanyu based on the similarity of their main businesses. Judging from the comparable companies mentioned above, the average revenue scale of comparable companies in 2022 was 723 million yuan, the comparable PE-TTM (excluding negative values/arithmetic average) was 38.28X, and the gross sales margin was 43.03%. In comparison, the company's revenue scale fell short of the industry average, but its gross margin was in the middle to high range of the industry.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.