The company issued the report on issuance of shares, purchase of assets and related transactions (draft), which intends to issue a total of 2.086 billion shares to purchase the 100% stake in Chengfei held by the Aviation Industry Group.
The revised draft of issuing shares and purchasing assets shall be issued and approved by the competent department of the industry. According to the company's report on issuing shares to purchase assets and related party transactions (draft) (revised version), the company has obtained the approval of the competent department of the industry for the purchase of assets by issuing shares. In addition, according to the underlying asset evaluation report filed by the SASAC of the State Council, the company intends to issue 2086021877 shares (accounting for 77.93% of the total share capital after the issue, the total share capital after the issue will reach 2.677 billion shares) to purchase the 100% stake in Chengfei held by the Aviation Industry Group, and the issue price of the shares is adjusted to 8.36 yuan per share excluding interest. The 100% equity valuation of aviation industry Chengfei is adjusted to 24.024 billion yuan, of which 6.585 billion yuan of state-owned exclusive capital reserve is not included in the price range of this transaction, and after deducting the state-owned exclusive capital reserve, the price of the 100% equity of aviation industry Chengfei is 17.439 billion yuan. The consolidated financial statements of aviation industry Chengfei include six subsidiaries of aviation industry Guifei, Guifei Design Institute, Aviation Industry Changfei, Chengfei Civil aircraft, Chengfei Aviation products and Chengfei Conference. After the completion of this transaction, the aviation industry Chengfei will become a wholly-owned subsidiary of the company, the company will add aviation equipment and ministry accessories development and production business and focus on the main aviation industry.
The three-year performance commitment period ensures the company's future performance growth trend. According to the Asset Evaluation report disclosed in the announcement and the corresponding evaluation instructions, the performance commitment assets make performance commitments of net profit and income respectively during the performance commitment period. For performance commitment asset 1 (Chengfei aviation), if this transaction is completed in 2023, the net profit corresponding to the performance commitment period from 2023 to 2025 will not be less than 16.099 million yuan / 16.3041 million yuan / 16.9906 million yuan respectively; if this transaction is completed in 2024, the net profit corresponding to the performance commitment period 2024-2026 will be no less than 16.3041 million yuan / 1699.06 million yuan / 1713.21 yuan respectively. For performance commitment assets 2, if the transaction is completed in 2023, the income corresponding to the performance commitment period from 2023 to 2025 is not less than 65.153 billion yuan / 66.086 billion yuan / 69.97 billion yuan respectively; if the transaction is completed in 2024, the income corresponding to the performance commitment period from 2024 to 2026 is not less than 66.086 billion yuan / 699.70 billion yuan / 749.42 billion yuan respectively.
The profitability has room for improvement, and the high level of contract liabilities ensures the improvement of performance. According to the draft, the income of the aviation industry in the 21st, 22nd and January-August of 23 years is 53.39 billion yuan, 67.291 billion yuan and 49.994 billion yuan respectively, and the net profit of returning to the mother is 1.85 billion yuan, 1.313 billion yuan and 2.272 billion yuan, respectively. In terms of profitability, the gross profit margins of 21 years, 22 years and 23 years from January to August are 8.30%, 7.41% and 5.98% respectively, and the net interest rates are 3.47%, 1.95% and 4.55%, respectively. In view of the continuous losses of the wholly-owned subsidiary aviation industry Guifei in recent years, excluding the expensive flight of the aviation industry, the income of the aviation industry from January to August of Chengfei in 21 years and 22 years and 23 years is 51.497 billion yuan, 65.356 billion yuan and 49.499 billion yuan respectively, and the net profit is 2.299 billion yuan, 2.015 billion yuan and 2.520 billion yuan respectively. In terms of profitability, excluding the aviation industry, the net profit rates of the aviation industry for 21 years, 22 years and 23 years from January to August are 4.46%, 3.08% and 5.09%, respectively. Compared with the restructuring of AVIC Shenyang aircraft, the net interest rate has gradually increased from 3.62% in 2017 to 6.36% in the first half of 2023. It is expected that the profitability of Chengfei in the future aviation industry will have room to rise after injection. In terms of balance sheet, as of August 31, 2023, the debt balance of the aviation industry Chengfei contract is 40.935 billion yuan, which is relatively sufficient, which is expected to ensure the continuous improvement of the company's future performance.
Profit forecast: the company's return net profit from 2023 to 2025 is 227 million, 280 million and 345 million respectively, and the corresponding PE valuation is 120,97 and 79 times respectively; according to the income method evaluation results disclosed in the announcement, the company's return net profit from 2023 to 2025 is forecast to be 2.682 billion yuan, 2.77 billion yuan and 2.513 billion yuan respectively, and the corresponding PE valuation is 46, 44 and 49 times respectively, maintaining a "highly recommended" rating!
Risk hint: major asset restructuring is not as expected, and the progress of reform is lower than expected.