Event

On August 1, Beimo Hi-Tech released its 2023 semi-annual report. 2023H1, the company achieved revenue of 623 million yuan, down 3% from the same period last year, and realized a net profit of 249 million yuan, an increase of 18% over the same period last year.

Comment

1. The development trend of aviation braking business is good, and the profit of the parent company has increased by 32.29% compared with the same period last year.

2023H1, the company achieved revenue of 623 million yuan, down 3% from the same period last year, of which the parent company achieved revenue of 424 million yuan, an increase of 11% over the same period last year, and subsidiary Jinghanyu's revenue of 196 million yuan, down 25% from the same period last year The company achieved a net profit of 249 million yuan, an increase of 18% over the same period last year, of which the parent company achieved a net profit of 208 million yuan, an increase of 32% over the same period last year, and the subsidiary Jinghanyu's net profit was 63.9653 million yuan, down 38% from the same period last year.

2. The gross profit margin of aviation braking business is basically stable, the gross profit margin of testing business is declining, and the expense rate of the company is basically stable. 2023H1, the gross profit margin of the company's aviation braking business is basically stable, of which the gross profit margin of the brake disc (deputy) is 84.64%, an increase of 2.03pcts over the same period last year, and the gross profit margin of the aircraft brake control system and wheel business is 66.84%, down 1.52pcts from the same period last year. The company's testing and testing business due to the phased adjustment of Jinghanyu downstream customer procurement plan and changes in the prosperity of the electronic components testing industry, the gross profit margin decreased by 67.38%, down 6.29pcts from the same period last year.

2023H1, the company's four-fee rate is 14.02%, slightly lower 0.15pcts than the same period last year.

3. Civil aviation business is expected to build the company's second growth curve, with brake (sub) business revenue increasing by 154% compared with the same period last year. Among the main aviation brake business, 2023H1, the company's aircraft brake control system and wheel business achieved 354 million yuan, an increase of 0.09% over the same period last year, while the brake disc (deputy) business achieved an income of 65.6671 million yuan, an increase of 154.01% over the same period last year. The substantial growth of the company's brake disc business is mainly due to the company accelerating the penetration of civil aviation business and better market development. In 2022, the company realized civil aviation business income for the first time. Driven by 2023H1, the company's brake business income increased significantly, and the second growth curve of the company's civil aviation market gradually took shape.

4. Production capacity construction continues to advance, and the company's civil aviation business and landing gear business have broad prospects.

The company continues to promote the production capacity construction of brake disc, wheel and landing gear landing system, focusing on the development of the core main industry, in order to cope with the demand of the military industry in the second half of the 14th five-year Plan.

By the end of 2023H1, the investment progress of "aircraft Wheel production capacity expansion Construction Project" was 40.59%, and that of "aircraft Landing system Technology R & D Center Construction Project" was 92.85%. Looking to the future, civil aviation business and landing gear business are expected to become an important part of the company's business.

5. Profit forecast and investment rating: we expect the company's homing net profit from 2023 to 2025 to be 4.20,5.51 and 732 million yuan, with a PE valuation of 31,24,18 times the corresponding share price, maintaining the "overweight" rating.

Risk hint

The purchase of military products is not as expected; the market expansion of civilian products is not as expected; the decline in the price of military products is beyond market expectations.