Key points of investment

Formerly known as Lekai New Materials, it was injected with aerospace energy and aerospace molding in 2023, and became the launch platform for Sichuan Aerospace. Aerospace Intelligent Manufacturing, formerly known as Lekai New Materials, entered the capital market on April 23, 2015. In 2020, the company's main business was information anti-counterfeiting materials and electronic functional materials. The company completed a major asset restructuring in 2023 and obtained 100% shares in Aerospace Energy and 100% shares in Aerospace Molding by issuing shares to purchase assets. The company became a listing platform for the Seventh Aerospace Academy.

In 2023, after completing the major asset restructuring, the company achieved overall operating income of 5.86 billion yuan, an increase of 20.10% over the previous year, and achieved net profit of 0.423 billion yuan, an increase of 61.36% over the previous year; in 2024Q1, the company achieved operating income of 1.896 billion yuan, an increase of 70.14% over the previous year, and achieved net profit of 0.167 billion yuan, an increase of 295.34% year on year, and the performance continued to grow rapidly.

Aerospace energy products are mainly used for unconventional oil and gas extraction. As consumables, products are related and positively related to strong oil and gas extraction, and are expected to grow rapidly over a long period of time. Established in 2013, Aerospace Energy is a high-tech enterprise engaged in R&D and manufacturing of drilling equipment and high-end completion equipment in the field of oil and gas equipment. The overall shale oil and gas clustering and drilling equipment produced by aerospace energy is at the international advanced level, and some are at the leading international level. The market share is the first in the country and the second in the world. In 2022, the revenue of aerospace energy's unconventional oil and gas extraction products was 0.347 billion yuan, accounting for 69% of aerospace energy's main business revenue; in 2023, the share of revenue from unconventional market products such as aerospace energy shale gas (oil) continued to increase. As domestic oil and gas storage and production drive up production, the prospects for unconventional oil and gas extraction are broad. The company's products, as consumables, are strongly related and positively related to oil and gas extraction, and are expected to achieve rapid long-term growth.

Aerospace molding is engaged in the auto parts business. The NEV business accounts for a high share. Expanding to smart cockpits increases the value of bicycles, and aerospace molding performance is expected to maintain a relatively rapid growth rate. Established in 2000, Aerospace Molding is committed to developing and producing products such as automotive interior and exterior parts, smart cockpit parts, and lightweight engine parts. It is one of the few domestic automotive interior and exterior parts companies with revenue exceeding 5 billion yuan. In 2023, Aerospace Moulding provided parts for a total of 10.95 million vehicles, accounting for 42% of the country's total passenger car sales. In 2023, the company continued to gain strength in the new energy vehicle market. In 2023, the company continued to gain strength in the new energy vehicle market, with new energy vehicles accounting for 55.9% of newly acquired products, exceeding the industry penetration rate. At the same time, the company has successfully entered the supplier system of new car builders such as NIO Auto and Wenjie and carried out collaborative design of interior and exterior parts products. Some products have received mass production orders, and the company will expand into smart cockpits in the future Increase the value of bicycles, and performance is expected to maintain a relatively rapid growth rate.

As a listed platform for the Seventh Aerospace Academy, the company can be expected to inject assets in the future. The Seventh Aerospace Academy belongs to the Aerospace Science and Technology Group. It is a major aerospace equipment production base, an important supporting collaboration base for aerospace products, and a development and production base for defense products and aerospace products. It undertakes research and production tasks such as 47% of the boxes for conventional launch vehicles, 95% of the pyrotechnics for launch vehicles, and 80% of the pyrotechnics for manned spacecraft. Since its establishment, the Seventh Aerospace Academy has been committed to building a world-class aerospace equipment manufacturing company. In order to accelerate the achievement of strategic goals and development plans, the Seventh Aerospace Academy urgently needs to inject its high-quality assets into listed companies, build a platform for industrial development and listing, promote resource integration and capacity layout in business sectors such as intelligent equipment, advanced manufacturing, and aerospace applications, and use the capital market to provide sufficient and timely financial support for the development of the Seventh Aerospace Academy's military and civilian products business, and promote the expansion and strengthening of the main military products industry and high-quality civilian products industry. We believe that as a listing platform for the Seventh Aerospace Academy, the company is expected to receive further asset injections from the military industry and the high-quality civilian goods industry in the future.

We expect the company's net profit to be 0.556, 0.69, and 0.865 billion yuan in 2024-2026, up 31%, 24%, and 25% year-on-year. The current stock price corresponds to the company's PE of 21, 17, and 13 times, maintaining a “buy” rating.

Risk warning

Unconventional oil and gas extraction such as shale gas fell short of expectations; the growth rate of the automobile market declined; market competition intensified, etc.