Event: the company released its 20-year annual report, with revenue of 1.76 billion yuan (+ 13.93%) and net profit of 263 million yuan (+ 23.58%).
Core viewpoints
Aviation military business is + 31.20% year-on-year, with a steady increase in profitability. The company achieved revenue of 1.76 billion yuan, including aviation military products 401 million yuan (+ 31.20%), intelligent transportation 525 million yuan (+ 10.35%), sensor control 788 million yuan (+ 9.07%). The substantial increase in aviation military products is mainly due to the rapid growth of the military production tasks of the subsidiary Hanzhong 101 and the parent company. During the reporting period, the company's gross profit margin steadily increased to 38.89%. During the period, the expense rate decreased 0.71pct to 22.52%, in which the management / sales / finance / R & D expense rate was year-on-year-0.87/-0.90/+0.18/+0.89pct. The combined improvement of gross profit margin and period expense rate made the growth rate of profit end higher than that of revenue end, and the net profit rate increased by 1.16pct to 14.92%.
Advance payments and inventory have both increased significantly, and production tasks are well stocked. The company reported that the prepayment at the end of the period was 29 million yuan, an increase of 23.53% over the beginning of the period, mainly due to the company's order growth and production demand; the ending inventory was 593 million yuan, an increase of 26.36% over the beginning of the period, mainly due to the substantial increase in Hanzhong 101 scientific research production and new product orders of the subsidiary Hanzhong 101. In order to meet the production delivery requirements, the purchase reserve of raw materials, self-made semi-finished products and completed inventory goods have increased.
Breakthroughs have been made in military and civilian business, and the digital transformation has progressed smoothly. 1) A certain type of cockpit control subsystem of the company successfully assisted the first flight of key aircraft. The pre-research phase acceptance of two major projects of a certain type of helicopter suspension delivery system, square cabin and unmanned suspension delivery system has been completed, and the unmanned suspension release system has filled the domestic blank. 2) the company keeps an eye on the development trend of intelligent logistics industry, overcomes technical problems, and buys land in intelligent measurement and control park. Become the mainstream system integration supplier mastering high-speed dynamic sorting technology 3) build the company's first automatic production line planned and designed independently, with the number of front-line production personnel reduced by nearly 40%, laying a solid foundation for the establishment of an "intelligent factory".
Financial forecasts and investment suggestions
On February 8, the company launched a share buyback with a total planned repurchase amount of 60 million-120 million yuan. At present, the company has bought back 4.69 million yuan, with a transaction price of 12.30 yuan to 12.42 yuan per share. The repurchased shares will be used for employee stock ownership or equity incentive to demonstrate the company's confidence. According to the 20-year annual report, the eps for 21 and 22 years is 0.60,0.76 yuan (originally 0.57,0.72 yuan), and the new 23-year eps is 0.95 yuan. According to the 21-year average valuation level of comparable companies, the corresponding valuation is 27 times, and the target price is 16.32 yuan, maintaining the buying rating.
Risk hint
Cost improvement fell short of expectations; new business growth fell short of expectations