Report summary

Deeply involved in the field of braking and braking, and the industrial layout is moving towards high-end. Beijing Beimo Hi-Tech Friction Materials Co., Ltd. is mainly engaged in R&D, production and sales of military and civilian aerospace vehicle landing gear landing gear systems and high-end equipment brake products such as tanks, armored vehicles, and high-speed trains. Since its establishment, the company has been deeply involved in the field of braking, and various models of leading products have been assembled into the military. Based on brake discs (auxiliary), the company gradually expanded to the entire aircraft wheel, brake control system, and landing gear landing system, and developed in the direction of integration and intelligence. At present, the company has achieved a leapfrog transformation from a parts supplier and material supplier to a system supplier and overall solution provider, forming comprehensive competitiveness in a deep industrial chain. The advantages of system integration are obvious, and profitability is expected to continue to improve.

The air braking threshold is high, and the competitive pattern is relatively stable. Aircraft brake control systems, wheels, and brake discs (auxiliary) are all important components of aviation landing systems. Aircraft brake control systems are not only key airborne systems to ensure the safety of aircraft take-off and landing, but they are also the two most expensive systems to use during the life of an aircraft along with the engine. Aircraft brake control systems and wheels are relatively stable due to their high product performance requirements and extremely complicated production processes. Currently, only a few domestic companies can produce such products, and the competitive pattern is relatively stable. The company's products are widely used in key military equipment such as fighter jets, bombers, transport aircraft, trainers, helicopters, space high-altitude aircraft and armored tanks. Aircraft braking control systems and wheel products have a first-mover advantage in military aircraft models that have already been finalized and installed, and will benefit directly from the high boom in the military aircraft incremental market and stock maintenance guarantee market in the future.

Profit forecast and investment rating: The company's net profit for 2023-2025 is estimated to be 390 million yuan, 582 million yuan, 755 million yuan, EPS is 1.17 yuan, 1.75 yuan, and 2.28 yuan, corresponding PE is 29 times, 20 times, and 15 times, giving a “buy” rating.

Risk warning: Military orders are growing less than expected; product delivery progress falls short of expectations.