Announcement. The company issued a "notice on the completion of the implementation of the shareholder reduction plan". Mr. Gao Wenshe reduced a total of 1.7176 million shares of the company through centralized bidding, accounting for 1.000% of the company's total share capital. The time limit for the reduction has come, the implementation of the reduction plan has been completed, and the total number of reduced shares does not exceed the number of shares agreed in the reduction plan.
There was a high year-on-year growth in the first half of 2019. Chenxi Airlines expects the net profit of shareholders of listed companies to be 18 million yuan to 19.38 million yuan in the first half of 2019, an increase of 272.61% and 301.18% over the same period last year.
In the first half of 2019, Chenxi Airlines adhered to the established development strategy and goals, and various business plans were carried out in an orderly manner. The business situation has remained stable and the business model has not changed significantly. The net profit of shareholders belonging to listed companies is expected to increase in the first half of the year compared with the same period last year, mainly because the products delayed due to the adjustment of customer procurement plans in the same period last year have been delivered one after another in the current period. therefore, the company's performance in the first half of the year increased significantly compared with the same period last year.
Layout of aero-engines to create new growth points. In 2019, Chenxi Airlines continued to develop the independent research and development of aero-engine and large helicopter power platform, accelerated the completion of the company's project development and acceptance of aero-engine and large helicopter power platform, and gradually marketed the products. Around this plan, establish a scientific research and production environment and supply chain system.
Inertial navigation and engine-related products aim at the development of the next generation of technology. Integration, miniaturization and platform upgrading are carried out on the basis of avionics technologies such as inertial navigation system, engine parameter acquisition and display system, flight control computer system and airborne ultrashort wave antenna to form the company's next generation avionics technology platform. On the basis of the current aero-engine digital electronic control system products, the continuous optimization of control and electromechanical miniaturization is carried out, and the batch marketization of products and the digital control transformation of old models of engines are gradually realized.
Expand the sales capacity of existing products and maintain growth. On the basis of the company's existing integrated inertial navigation technology, focus on the development and application of medium-high precision and high intelligent navigation products, and constantly optimize the performance and intelligent degree of autonomous inertial navigation products during long voyage. expand the scope of application of optical fiber strapdown inertial navigation products, and gradually form a large-scale market sales capacity. On the basis of the company's engine parameter acquisition, helicopter power system state acquisition and processing and database application product development, and expand its market application scope to form the market sales capacity of the new generation of products.
Profit forecasts and investment advice. We estimate that the EPS of Chenxi Airlines from 2019 to 2021 is 0.41,0.48,0.55 yuan respectively. Combined with the valuation of comparable companies, Chenxi Airlines was given a valuation of 42-45 times PE in 2019, with a reasonable value range of 17.22-18.45 yuan and a rating of "better than the city".
Risk hint. The risk of large fluctuations in military product orders; the company's new product listing process is slow.