Event: the company released its Triple report for the year 2023. Revenue in the first three quarters of 2023 was 36.23 yuan, an increase of 7.69 percent over the same period last year, and net profit was 844 million yuan, an increase of 25.84 percent over the same period last year.
Main points of investment
The net profit of homing increased by 50.06% in the third quarter compared with the same period last year, and the aviation new materials business grew steadily:
In the first three quarters of 2023, the company achieved a total revenue of 3.623 billion yuan, an increase of 7.69% over the same period last year, and a net profit of 844 million yuan, an increase of 25.84% over the same period last year. The basic EPS was 0.61 yuan, and the average ROE was 14.7%. Among them, the operating income of the aviation new materials business reached 3.552 billion yuan, an increase of 6.97 percent over the same period last year, mainly due to the increase in sales of aviation composite raw materials and brake products; the machine tool equipment business achieved 43 million yuan, an increase of 17.50 percent over the same period last year. This is mainly due to the year-on-year growth of special equipment and aviation parts processing business. As of September 2023, projects under construction reached 198 million yuan, up 47.05% from the same period last year, and R & D expenditure was 114 million yuan, an increase of 35.59% over the same period last year. In the third quarter of 2023, revenue reached 1.21 billion yuan, an increase of 13.67 percent over the same period last year, and the net profit returned to its mother was 293 million yuan, an increase of 50.06 percent over the same period last year.
Persist in speeding up innovation drive and strengthening development core momentum: by the first half of 2023, aviation industry composite materials have undertaken 14 research and development tasks of AG600 carbon fiber prepreg test pieces, and some of them have been delivered as planned. The preparation work for the thermal distribution process parts of the front fuselage panel of the large wide-body airliner has been carried out, and the relevant development plans and process documents have been completed. relying on the advantages of the composite technology platform, the company is expected to continue to expand the application field and enhance the core kinetic energy.
Adhere to technology as the core competitiveness, and constantly deepen its influence in the field of aviation composite materials: as a specialized supplier of aviation composite materials, the company has a strong core competitiveness and a leading position in the field of aviation composite materials. Under the advantages of the policy, the development of composite materials in China has a broad prospect. The company seizes the opportunity of cross-era development of aviation equipment and composite technology, continues to increase R & D investment, enhance the ability of independent research and development, and constantly consolidate the company's market position and core technology advantages. At the same time, adhere to business expansion, the rapid development of new aerospace materials business for the company to increase revenue; in the high-end intelligent equipment business has also made phased progress to promote the healthy development of the company.
Profit forecast and investment rating: the company's performance is in line with expectations, based on the high prosperity of the military industry during the 14th five-year Plan period, and considering the company's core position in the carbon fiber industry chain, we maintain the previous forecast that the company's 2023-2025 return net profit will be 10.10177,1684 million yuan respectively; corresponding to PE is respectively 34-26-21 times, maintain the "buy" rating.
Risk tips: 1) strategic initiatives fail to achieve effective risk management of resources; 2) composite business is affected by macroeconomic fluctuations and policies.