2023Q2 净利率修复、持续降本增效，研发费用率为主要期间费用率增加来源1）利润率方面：2023H1 毛利率为2.85%，同比增加0.30pct；净利率为0.40%，同比减少0.28pct。2023Q2 毛利率为2.82%， 同比增加0.62pct， 环比减少0.37pct；净利率为1.01%，同比增加0.34pct，环比增加7.63pct。Event: Company Releases 2023 Semi-Annual Report
1) 2023H1 performance: 2023H1 achieved operating income of 1,716 million yuan, a year-on-year decrease of 15.04%; net profit attributable to shareholders of listed companies was 07 billion yuan, a year-on-year decrease of 48.81%; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 0.04 billion yuan, a year-on-year decrease of 69.30%. The weighted average return on net assets was 0.13%, a year-on-year decrease of 0.13 pct. The 2023H1 performance was in line with market expectations, mainly due to a decrease in the number of products delivered by the company in the current period.
2) 2023Q2 performance: From a single-quarter perspective, 2023Q2 achieved revenue of 1,578 billion yuan, up 21.85% year on year, and 1052% month on month; net profit attributable to shareholders of listed companies was 316 million yuan, up 79.07% year on year, up 278% month on month, and 2023Q2's profitability increased.
2023Q2's net interest rate recovered, costs continued to be reduced and efficiency increased. The R&D expense ratio was the main source of increase in the cost rate for the period 1) Profit margin: 2023H1 gross margin was 2.85%, an increase of 0.30 pct over the previous year; net interest rate was 0.40%, a year-on-year decrease of 0.28 pct. 2023Q2 gross margin was 2.82%, up 0.62 pct year on year, decrease 0.37 pct month on month; net margin was 1.01%, up 0.34 pct year on year, and 7.63 pct month on month.
2) In terms of expenses during the 2023H1 period: The cost rate for the period was 2.66%, an increase of 0.71 pct over the previous year. Among them, the sales expense ratio was 0.23%, a year-on-year decrease of 0.02 pct; the management expense rate was 1.05%, an increase of 0.09 pct; the R&D expense rate was 1.55%, an increase of 0.60 pct; and the financial expense ratio was -0.17%, an increase of 0.04 pct over the previous year.
3) Continued cost reduction and efficiency: During the reporting period, the company continued to promote cost reduction and efficiency, issued special action plans, clarified annual cost and cost control goals, increased payment recovery and debt settlement efforts, broadened financing channels, reduced financing costs, built a cost management information system, and promoted low-cost management throughout the model cycle.
Contract liabilities remained stable, and the increase in cash payments for purchased goods affected operating cash flow 1) Balance side: 2023H1 company's notes and accounts receivable were $4.401 billion, an increase of 28.25% over the end of 2022. 2023H1's contract liabilities were $5.251 billion, a decrease of 4.88% from the end of 2022, and remained stable overall.
2) Cash flow side: The net cash flow from 2023H1 operating activities was -354 million, a year-on-year decrease of 249.70%, mainly due to the increase in cash payments for products purchased by the company in the current period.
Investment advice and profit forecasting
The company's training aircraft and defense products are driven by the dual drive of “domestic demand plus foreign trade”. The company's net profit is estimated to be 190, 220, and 290 million yuan in 2023-2025, +32%, +20%, and +29% year-on-year, EPS is 0.26, 0.31, and 0.40 yuan, and PE is 79, 66, and 51 times higher, maintaining the “buy” rating.
Risk Alerts: 1) Product Delivery Plans Delayed; 2) Risks such as Engine Supply Shortage.
