Events:
The company disclosed the 2020 Annual report, with revenue of 1.76 billion, an increase of 13.93% over the same period last year, and a net profit of 262 million, an increase of 23.58% over the same period last year. Basic earnings per share is 0.45 yuan per share.
Comments:
1. The military business has entered a period of rapid growth, with the growth rate reaching a new high in recent years.
During the reporting period, the company's military revenue increased rapidly, realizing revenue (401 million, + 31.20%), gross profit margin increased by 1.34% to 34.45%, and the growth rate of military products reached the highest level in nearly five years. During the period, there was a strong demand from customers downstream of the company's aviation military business, in which a certain type of cockpit control subsystem assisted the first flight of key aircraft successfully, and the handling performance was highly appraised by customers. the two major projects of a certain type of helicopter suspension delivery system, square cabin and unmanned suspension delivery system completed the final acceptance of the pre-research phase. At present, the company's military intelligent power distribution system, cockpit control subsystem and other products are widely used in China's main helicopters and transport aircraft models. It is expected that during the "14th five-year Plan" period, China has officially entered the construction period of new equipment. The professional development of aviation airborne equipment is accelerated, aircraft power distribution system is developing in the direction of distributed distribution system and load automatic management system, and aviation equipment is developing in the direction of intelligence. The company's aircraft power distribution products and based on the measurement and control core technology of the cockpit control subsystem, helicopter suspension delivery system and other business development prospects in the future. At the same time, it is expected that with the pricing of new equipment in the future, the company's military gross profit margin is expected to release to a higher level.
2. The emerging business of the civilian products market is developing well and extending to the downstream market.
During the reporting period, the company's civilian products business maintained a good growth trend, in which the revenue of strain testing and control products (788 million, + 9.07%), while the gross profit margin was 36.40%, a slight decrease of 0.14%. Intelligent transportation products realized revenue (525 million, + 10.35%), and gross profit margin increased by 1.35 percentage points to 45.67%. In the sensor control business, the company takes strain gauges as the core advantage and continues to extend downstream. During this period, the qualified rate of products of a key strain gauge project of the company continues to improve, and product orders grow rapidly. At the same time, it focuses on the emerging fields such as logistics, highway weighing and process industry, pays close attention to the development trend of intelligent logistics industry, overcomes the core technical problems, and becomes the mainstream system integration supplier mastering high-speed dynamic sorting technology. to provide strong technical and product guarantee for sustained and rapid development in the future. In intelligent transportation business, the company actively participates in the formulation of national and industry standards, adjusts and optimizes market strategies, and accelerates new business growth points such as intelligent driving training.
3. During this period, the expense rate continues to compress, and the profit margin continues to improve.
In terms of period expenses, sales expenses incurred during the period (147 million, + 2.84%); administrative expenses (164 million, + 4.26%); financial expenses (- 12.11 million, + 9.63%) R & D expenses (96.21 million, + 35.98%) are mainly due to the company's increased investment in R & D during the reporting period, the continuous expansion of the R & D talent team, the rapid growth of labor costs, and the increase in the input of materials used in R & D due to the increase in the task of scientific research and production. While maintaining strong R & D investment, the total expenditure rate decreased by 0.71 percentage points. The net profit margin increased to 15.44%.
4. Carry out employee stock ownership to show confidence in development and value recognition.
In June, 2020, the company examined and passed the "bill on the company and its summary", and implemented the first phase of the employee stock ownership plan in July. The total number of employees participating in the current employee stock ownership plan is 202.The total amount of funds actually raised is 50.6 million yuan, and the transfer price is 9.25 yuan per share. We believe that the implementation of the first phase of the employee stock ownership plan has established and improved the company's long-term incentive and restraint mechanism, which is conducive to fully mobilize the enthusiasm and creativity of employees, attract and retain excellent management talents and business backbones, improve the cohesion of the company's employees and the company's core competitiveness, and be conducive to the long-term development of the company.
5. Performance forecast
It is predicted that the return net profit of the company from 2021 to 2023 is 3.48,4.47 and 563 million yuan respectively, and the corresponding valuation is 21, 16 and 13 times respectively.
Risk tips: the performance of civilian products is affected by the macro-economy, and the delivery of supporting military products is affected by the model development process.