Event description
Aerospace Science and Technology Company released its third quarterly report for 2023. From the beginning of 2023 to the end of the third quarter of 2023, the operating income of the Company was CNY 1.711 billion, with a year-on-year growth of 72.75%; the net profit attributable to the parent company was CNY 167 million, with a year-on-year growth of 24.47%; the net profit attributable to the parent company after deduction of non-profit was CNY 154 million, with a year-on-year growth of 25.85%; the total liabilities were CNY 1.847 billion, with a year-on-year growth of 12.03%; and the monetary fund was CNY 214 million, with a year-on-year decrease of 11.99%; Accounts receivable amounted to 1.059 billion yuan, up 66.82% year-on-year; inventory amounted to 837 million yuan, up 5.35% year-on-year.
Event comment
Delan Aerospace, a subsidiary, was fully put into operation, with production capacity gradually released and performance continuously growing at a high level. The downstream high prosperity degree continues. With the full production of the subsidiary Delan Hangyu and the gradual release of production capacity, the overall production capacity of the Company has been steadily improved and the sales volume of products has been increased. In the third quarter of 2023, the Company realized revenue of RMB 529 million yuan, with a year-on-year growth of 43.95%. The revenue continued to grow at a high rate, realizing net profit of RMB 51 million yuan, with a year-on-year growth of 26.26%. Excluding the impact of share-based payment, from the beginning of 2023 to the end of the third quarter, the Company realized a net profit of CNY 229 million, an increase of 50.42% year-on-year.
Domestic and foreign aviation market two-wheel drive, performance is expected to continue high growth. Benefiting from the large-scale installation demand of new generation aviation equipment, the domestic military aviation engine market has entered a new stage of "heavy volume construction", and the civil aviation market continues to recover. With the completion of the commercial maiden flight of C919 and the further development of Yangtze River series engines, the company is expected to benefit from the two-wheel drive of domestic and international aviation markets and achieve sustained high-speed growth in performance.
Investment suggestion
We have lowered the company's earnings forecast. It is estimated that the EPS of the company from 2023 to 2025 will be 1.58\2.18\3.16 respectively, corresponding to the closing price of 49.50 yuan on October 30 of the company, and the PE from 2023 to 2025 will be 31.3\22.7\15.6 respectively, maintaining the "overweight-A" rating.
Risk hint
Downstream demand is lower than expected; batch production cannot be successfully finalized at R & D; raw material prices fluctuate; risk of large scale of accounts receivable