Event: the company announced that Guizhou Aerospace Science and Technology, a shareholding company, was approved by the exchange in the science and technology creation version of IPO. Hangzhou Layun Yingyi investment partnership, whose limited partner accounts for 99 per cent of its investment, owns 26.529 million shares of aerospace technology, accounting for 25.27 per cent of its total pre-IPO share capital and is currently its second-largest shareholder.
Aerospace Science and Technology is a high-tech enterprise in the field of aeronautical materials, which is a leader in the market of aviation ring forgings. According to the prospectus, Aerospace Science and Technology is a high-tech enterprise mainly engaged in R & D, production and sales of aviation refractory metal ring forgings, and the related R & D and manufacturing technology has reached the same advanced level in the world.
The main products are aero-engine ring forgings, which are also used in aerospace rocket engines, missiles, shipborne gas turbines, industrial gas turbines, nuclear power equipment and other high-end equipment. Domestic customers include China Aeroengine Group, etc., and overseas have signed long-term agreements with GE Airlines, Pratt & Whitney (Pratt & Whitney), SAFRAN (SAFRAN), RR (Luo Luo), Honeywell International Inc (Honeywell), MTU and other major aero-engine customers. The revenue of Aerospace Technology in the first three quarters of 2018 / 2019 / 2020 was 590.45 million yuan respectively, an increase of 47%, 77% and 9% respectively over the same period last year, and the net profit was 2441%, 538610 million and + 121% respectively. 45%.
After the listing of aerospace technology, it is expected to bring better investment returns to the company and optimize its balance sheet. Aerospace Science and Technology announcement intends to issue no more than 45 million shares and no less than 35 million shares, and raise no more than 700 million yuan. Based on the issuance of 35 million shares, the overall valuation is about 2.8 billion yuan, and the company's shareholding ratio has dropped to 18.95%, with a value of about 530 million yuan. When the company participated in the fixed increase of aerospace technology in 2017, its valuation was about 730 million yuan, and its shareholding value was about 180 million yuan. Only when the fixed increase is completed to the valuation of IPO, the company's shareholding income is about 350 million yuan, and the rate of return is about 194%. According to accounting standards, we expect Layun Yingyi to include the listed aerospace technology shares in financial assets and to recognize fair value changes in profit and loss according to the actual share price changes. Long Yuan Construction will indirectly share the investment income brought about by the share price changes through its holding of the equity interest in Layun Yingyi. In addition to investment income, the substantial appreciation of equity after the IPO of Aerospace Technology is also expected to reduce the asset-liability ratio of Longyuan Construction and further optimize the asset-liability structure.
The structure of newly signed orders has been optimized, and the rebate of PPP projects has increased significantly, gradually entering a balanced period of investment and income. From January to September 2020, the company and its subsidiaries signed a total of 14.878 billion contracts, an increase of 29.35% over the same period last year. The company announced that non-private investment projects accounted for 53.81% of the newly signed orders in the first half of the year, and the business structure continued to improve. It is estimated that the peak of the company's PPP investment has passed, and the long-term receivables increased by 8 billion yuan in 2019, a decrease of 2.9 billion yuan compared with the same period last year, indicating a significant decline in investment intensity. At the same time, the preliminary project was gradually completed and entered the operation recovery stage. It was announced that in the first half of 20 years, the government rebate of the PPP project totaled 722 million yuan, an increase of 93.57% over the same period last year. Eight new PPP projects entered or partially entered the operation period. With the continuous increase of PPP projects entering the collection period, the company will gradually enter the development stage of a good balance between PPP project investment and investment recovery.
Investment suggestion: it is predicted that the company's homing net profit from 2020 to 2022 will be 8.2x101max 1.11 billion yuan (regardless of the impact of aerospace technology listing), year-on-year change-20% Universe 24% Universe 9%, corresponding to EPS 0.53 Universe 0.72 yuan, the current share price corresponding to PE is respectively 11-9-8 times, PB (lf) is only 0.77 times, maintaining the "buy" rating.
Risk hints: assembly business promotion is not as expected risk, PPP policy risk, order conversion schedule is not as expected risk, aerospace technology listing progress and stock price fluctuation risk.
