Summary of the report
Event: the company announced on August 25 that it achieved revenue (108 million yuan, + 42.77%), net profit (18 million yuan, + 43.46%), non-return net profit (11 million yuan, + 41.48%), gross profit margin (60.11%,-6.86pcts) and net profit rate (14.94%) in the first half of 2023.
The company 2023. The performance grew rapidly in the first half of the year and was on the aerospace track with high prosperity. The company's aerospace, aviation tooling and satellite communications business has achieved substantial growth, aviation product revenue has declined, but in the downstream demand strong and deterministic environment, the full-year performance is expected to maintain rapid growth. The overall business gross margin has declined, which we believe is mainly due to changes in the product structure.
Continuously increasing R & D investment is expected to bring new incremental space for the company's future performance. During the reporting period, the company's R & D investment and the number of R & D personnel maintained rapid growth, and the projects under research focused on the development of UAV wing structure, aviation composite molding process, welding process, communication equipment and measurement and control system. Some of the projects under research have entered the application stage of small batch production and will be gradually cashed into the profit statement.
The fund-raising project focuses on satellite communications and measurement and control testing equipment, which is expected to become one of the core drivers of rapid performance growth. The company was listed in Science and Technology Innovation Board in June 2023 and plans to spend 600 million yuan on the industrialization project of dual-use communication, measurement and control and testing equipment for military and civilian use, with a construction period of 2 years. It will help to provide a strong guarantee for the sustained growth of the company's medium-and long-term business, constantly improve the scale of income and performance, and actively implement I shares, so as to stimulate the company's creativity and vitality. Before listing, the company has successively set up four shareholding platforms, including Changsha Haoyu, Changsha Yuhan, Changsha Ronghan and Changsha Zhongrong. By the end of May 2023, the total number of shares held was 38.284 million shares, accounting for 10.47% of the total share capital, involving 160 partners.
The company focuses on the R & D and manufacture of aerospace products, aerospace process equipment, aviation products and satellite communications and measurement and control testing equipment in the aerospace field. It is one of the main suppliers of scientific research institutes and overall units under large central enterprises, such as aerospace science and technology, AVIC, AVIC, China Electric, Comac and other large central enterprises. Our specific views and judgments are as follows:
① aerospace products: the company has been deeply engaged in the aerospace field for nearly 20 years, and has completed manned spaceflight, Beidou project, lunar exploration, Mars exploration, high-score remote sensing, Internet satellites and other spacecraft-related tasks. Driven by the demand for space infrastructure construction in China in the future, the business demand for aerospace products of the company is also expected to maintain rapid growth.
② aerospace process equipment: the company has completed the development and delivery of ARJ21, C919, CR929 and other commercial aircraft, UAV and target aircraft, as well as satellite antenna reflector, rocket fairing and other spacecraft process equipment. In the future, with the rapid development of China's aviation industry and space industry, the development of new models of aerospace equipment is expected to continue to land, and the demand for process equipment is expected to increase steadily.
③ aviation products: the company has completed the development and delivery of CJ-1000 and other engine parts, composite UAV fuselage, wings, metal vertical tail and other parts, as well as target aircraft assembly and other products. The company's business income has grown rapidly in recent years, and the front volume is relatively small. From the development opportunities and related models brought by China's civil aircraft and aero-engine industry, it is expected to become the company's second important revenue growth driver in addition to Satong measurement and control equipment.
④ satellite communications and measurement and control testing equipment: mainly based on "sky server feed" sub-system products, including satellite communication antennas, ground measurement and control antennas and special test equipment. It is the fastest growing area of the company's revenue in recent years, and it is also the only area where the company's IPO raised funds to invest. It is expected to usher in rapid growth in the next few years with the landing of satellite Internet construction in China.
Based on the above point of view, we expect the company's operating income from 2023 to 2025 to be 553 million yuan, 728 million yuan and 976 million yuan respectively, the net profit from the parent is 165 million yuan, 212 million yuan and 272 million yuan respectively, and the EPS is 0.41,0.52,0.67 yuan respectively. We give the buy rating, corresponding to the current share price of 71 times, 56 times and 43 times PE respectively.
Risk hint: the construction progress of the fund-raising project is not as expected; the downstream demand is not as expected; the capacity digestion is not as expected; the upstream raw material cost fluctuates.