Main points of investment
Event: on August 24, 2023, Aerospace Huanyu released a report for the first half of 2023. In the first half of 2023, the company achieved operating income of 108 million yuan, an increase of 42.8 percent over the same period last year, and a net profit of 18 million yuan, an increase of 43.5 percent over the same period last year. Deducting the non-return net profit was 11 million yuan, an increase of 41.5% over the same period last year.
Deep ploughing in the field of aerospace, performance growth is in line with expectations. The company specializes in the R & D and manufacture of aerospace products, aerospace process equipment, aviation products, satellite communications and measurement and control testing equipment. After nearly 20 years of development, it already has the research and production capacity covering the whole process from product design, simulation analysis, process design, precision manufacturing, assembly integration to debugging and testing. it is one of the main suppliers of scientific research institutes and overall units under large central enterprises, such as aerospace science and technology, China Aviation Industry, China Aviation Development, China Electric Technology, China Aviation and other large central enterprises. It has obtained the certification of national high-tech enterprise and national special new "Little Giant" enterprise. In the first half of 2023, the company realized operating income of 108 million yuan, an increase of 42.8% over the same period last year, mainly due to the increase in revenue from aerospace products, aviation process equipment and ground communications and measurement and control equipment, which is in line with the company's prospectus performance forecast.
The four plates take the lead in technology, and innovation leads the industry. Aerospace products plate mainly undertakes the research, manufacture, assembly and testing of core components such as spaceborne microwave antennas, microwave devices, mechanism structure, thermal control and other core components, which realizes the self-control of this subdivision field and is in a leading position in China. Aerospace process equipment plate has completed the development and delivery of ARJ21, C919, CR929 and other commercial aircraft, as well as UAV, target aircraft and satellite, rocket spacecraft process equipment, and the design and manufacturing capabilities are in a leading position in China. The aviation products plate undertakes the research and development of composite structures, composite functional parts and metal parts, and has completed the delivery of various types of engine cabin parts, engine blades and UAV fuselage. The satellite communication and measurement and control test equipment plate includes three categories: satellite communication antenna, ground measurement and control antenna and special test equipment, which is in the forefront of the industry, and the market influence is gradually emerging.
The advantage of qualification certification is obvious, and the R & D team is expanding steadily. Civil and military aerospace fields have high qualification and certification requirements, which requires enterprises to have strong R & D, technology and production strength, and a long inspection cycle, which has become one of the conditions to enter the aerospace industry. At present, the company has obtained the relevant qualifications, and has won the honorary titles such as "excellent supplier" awarded by customers many times, and has accumulated rich customer resources. In the first half of 2023, the company's R & D investment was 24 million yuan, an increase of 11.7% over the same period last year, accounting for 21.8% of revenue; the number of R & D personnel was 145, an increase of 16.9% over the same period last year, accounting for 21.0% of the total employees. During the reporting period, three new invention patents and four utility model patents were applied for. In recent years, the company has undertaken a number of scientific research and industrialization projects, including 10 provincial and above science and technology and industrialization projects, including 3 major projects of "5 100 projects" in Hunan Province. In addition, the company is also an outstanding contributor to the two national lunar exploration projects.
We will promote the construction of Zigong Huanyu Industrial Park and speed up the release of aviation product capacity. In September 2022, the company plans to invest 200 million yuan to set up a wholly-owned subsidiary in Zigong, Sichuan Province, which is mainly engaged in composite parts, UAV segment and whole machine assembly, UAV communication product assembly, test production line and corresponding supporting and guarantee facilities. In February 2023, the establishment registration of the subsidiary was completed. According to the supporting needs of Zigong Aviation Industry Park, Zigong Huanyu has purchased 132 mu of land for the development and industrialization of composite parts and machine structure of UAV, mainly to improve the manufacturing capacity of composite parts. UAV assembly and testing capabilities, actively participate in the UAV industry chain matching demand, speed up the capacity construction of aviation products.
Grasp the overall situation of the development of Leo satellite communications and strive to become a first-class supplier in the industry. The state has issued a number of policies and measures to encourage the large-scale application, commercial service and international expansion of satellites in various industries, and the industry is facing major opportunities for development. In the field of rockets, on June 7, China's largest solid carrier rocket, Lijian 1, successfully launched "26 stars with one arrow", with a capacity of 1500 kg in 500km of sun synchronous orbit; on July 12, Vermilion Bird II, the world's first liquid oxygen methane rocket, was successfully launched, marking a major breakthrough in the application of new low-cost liquid propellants for China's carrier rockets. In the satellite field, on July 9, China successfully launched a satellite Internet technology test satellite from the Jiuquan Satellite launch Center, and the domestic Leo Internet constellation program was officially launched. The company strives to build large-scale industrial capacity, and strive to develop into a domestic first-class supplier of satellite communication products, ground measurement and control products and special testing equipment. With the accelerated construction of domestic Leo satellite network, the company is expected to fully benefit.
Investment suggestion: the company is a high-tech enterprise in the field of aerospace and satellite communications. with the improvement of the prosperity of downstream low-orbit satellite communications and the increase of the company's technology accumulation, we are optimistic about the long-term development of the company. We maintain our profit forecast that the company's income from 2023 to 2025 is expected to be 6.28max 9.66 / 1.465 billion yuan, an increase of 56.3%, 53.9% and 51.7%, respectively. The net profit of the company is 1.85%, 27920 million yuan, 50.6%, 51.2%, 50.5%, respectively, corresponding to EPS 0.450.69, 1.03 and PE 49.532.721.7, respectively. Maintain the "increase-B" proposal.
Risk hint: can not be digested in time, customer concentration is high, technology substitution risk.