Events:
KuaiBao's total operating income in 2019 was 1499370072.65 yuan, up 98.70% from the same period last year, the total profit was 78.485 million yuan, up 77.35% from the same period last year, and the net profit from his mother was 75793115.87 yuan, up 50.68% from the same period last year. The main reason for the increase in revenue is that after the acquisition of MMRO, the overseas market has grown significantly, while the development of domestic equipment and the smooth signing of the top of the business.
Comments:
1. Equipment development and guarantee business orders continue to land, which has a positive impact on the improvement of net profit. The company's equipment development and support business mainly includes aviation airborne equipment and testing equipment. Airborne equipment mainly includes flight parameters and voice recording system, integrated data acquisition and information processing system, helicopter vibration monitoring and health diagnosis system, engine health monitoring system and so on. at present, it is used in many types of aircraft and helicopters in China. With the delivery of new helicopter models, the revenue of the company's supporting products will increase significantly.
In addition, the company is a key domestic testing equipment development unit, is a very small number of airborne equipment automatic test equipment (ATE) research and development and industrialization capabilities of the company. ATE equipment can effectively improve the detection technology and efficiency, reduce maintenance costs, and with the continuous improvement of the digitization and integration of airborne equipment, the demand for ATE equipment will increase greatly.
2. Aviation maintenance and service business develops in coordination at home and abroad. After the company acquired MMRO in 2018, the company expanded from the original airborne equipment maintenance business to base maintenance, route maintenance, aircraft interior decoration and external painting, as well as aviation asset management business. During the reporting period, the aviation asset management business invested by the company in China also began to make a profit, which had a positive impact on the company's net profit.
3. Issue convertible bonds to invest in engine health management and other projects, and improve the company's product line. In the near future, the total amount of funds to be raised by issuing convertible bonds will not exceed 250 million yuan (including issuing expenses). After deducting the issuing expenses, it will be invested in engine health management projects, R & D center projects and supplementary liquidity. Engine health and safety system can improve engine safety, improve engine maintenance efficiency and reduce engine maintenance costs. after the implementation of the project, the company will form a complete product line in the field of aircraft health management and consolidate market advantages.
4. carrying out equity incentive is expected to improve the operating efficiency of the company.
The company announced on February 20 that the company's controlling shareholders intend to reduce their shares in the company by means of bulk transactions, accounting for no more than 0.98% of the total number of shares in the company. However, on October 29, 2019, the company approved the motion on granting stock options to incentive targets, agreeing to grant 2.87 million stock options to 43 incentive targets on November 4, 2019. The exercise price is 18.02 yuan. after 12 months from the date of grant, if the exercise conditions stipulated in this plan are met, the incentive object may exercise the right in three phases within the following 36 months. The exercise performance assessment requires that operating income in 2019, 2020 and 2021 grow by no less than 20%, 40% and 60% respectively on the basis of 2018. We believe that although the controlling shareholders of the company have reduced their holdings recently, this incentive plan still reflects the management's confidence in the medium-and long-term development of the company, and helps to stimulate the enthusiasm of the management, business and technical teams. improve the operational efficiency of the company.
5. Performance forecast
It is predicted that the company's return net profit from 2019 to 2021 is 75 million, 98 million and 123 million yuan respectively, and the corresponding valuation is 52, 40 and 32 times respectively, covering for the first time and giving a "highly recommended-A" rating!
Risk hint: the fluctuation of military orders affects the company's performance, the integration of overseas teams is not up to expectations, and the recent reduction of controlling shareholders leads to stock price fluctuations.