Main points of investment
In 2019, the company's equipment development and guarantee business gradually landed with new customer orders, opening up a new broad market space, and the delivery of new models of airborne equipment development business was smooth, which had a positive impact on the company's net profit during the reporting period. During the reporting period, the company achieved revenue of 1.495 billion yuan, an increase of 98.07% over the same period last year; net profit of 67.68 million yuan, an increase of 34.54% over the same period last year; and net profit of 51.16 million yuan, an increase of 45.68% over the same period last year, the growth rate was lower than the revenue growth rate, mainly due to the decline of gross profit margin.
2020Q1 achieved revenue of 294 million yuan, an increase of 25.81% over the same period last year, mainly due to the gradual delivery of new customer orders for equipment development and guarantee business in the first quarter, the completion of delivery of airborne equipment development business products, and the smooth progress of overseas air asset management business. The net profit of returning home was 168200 yuan, a decrease of 44.12% over the same period last year.
From a business point of view, the company's revenue from aviation maintenance and services reached 1.158 billion yuan in 2019, an increase of 96.57% over the same period last year, accounting for 77.51% of the company's revenue, a decrease of 0.59pct, a gross profit margin of 19.18% and a decrease of 8.89pct over the same period last year. The revenue of the equipment development and guarantee business reached 328 million yuan, a year-on-year increase of 113.08%, accounting for 21.94% of the company's revenue, an increase of 1.55pct, a gross profit margin of 40.36%, and a decrease of 5.52pct. In 2019, the company's overall gross profit margin was 24.27%, down 8.33pct from the same period last year, mainly due to the increasingly fierce market competition; the company's overall net profit margin was 4.43%, down 2.14pct from the same period last year.
According to the latest earnings report, we adjust our profit forecast and expect the company to achieve a net profit of 0.78 million yuan per share in 2020-2022, with an EPS of 0.29 yuan per share and 0.47 yuan per share corresponding to PE on 47-38-29 (2020-4-30), maintaining a "prudent overweight" rating.
Risk tips: military procurement is lower than expected, civil aviation maintenance market competition intensifies, civil aviation maintenance market is greatly affected by the epidemic situation.