Civilian participation in the army of high-quality enterprises, deep ploughing in the field of military inertial navigation and engine electronics. Chenxi Airlines is based in the aviation field, the main business is R & D, production, sales of aviation mechanical and electrical products and provide related professional and technical services, the main products and services related to aviation inertial navigation, aero-engine electronics and UAV fields. The main products of Chenxi Airlines are dual-use products, but at this stage, the company's products are mainly sold in the form of military products, and the end users are mainly the domestic military.
Revenue and return net profit remained stable. Since its inception, the company has been committed to the research and development, production and sales of aviation mechanical and electrical products, and the main business income has accounted for more than 99% of the business income in the past three years. The main business income mainly comes from aviation inertial navigation products, aero-engine electronic products and related professional and technical service income and other product income. In 2018, the company achieved a total operating income of 174 million yuan, with a compound growth rate of 8.72% from 2011 to 2018. The net profit belonging to the shareholders of the parent company was 64.5894 million yuan, with a compound growth rate of 14.85% from 2018 to 2018.
Aviation inertial navigation is an important part, and there is a great demand in the domestic market for military and civilian use. Because inertial navigation is the only navigation mode which can not only provide autonomous navigation but also provide dynamic and complete information, inertial navigation is an important and irreplaceable navigation method in the field of aviation navigation. Due to the trend of weapon guidance, the use of inertial technology in the military field has been greatly expanded, ranging from bullets and shells to missiles, aircraft and satellites without inertial technology to provide attitude and position information. inertial navigation technology is one of the fastest growing fields of current military technology. At the same time, the further promotion of the application of UAV in the military and civil market will also greatly promote the development of inertial technology and bring a new market for the application of inertial technology. In addition, with the gradual implementation of the low-altitude open policy, general aviation will enter a period of rapid development, which will also bring huge business opportunities for the application of inertial technology. The aviation inertial navigation products and aero-engine electronic products produced by Morninglight Airlines are used in military equipment such as helicopters, fixed-wing aircraft and drones.
The market prospect of domestic aero-engine is good, and Chenxi has strong competitiveness in core technology. The aero-engine is the "heart" of the aircraft, and the aero-engine monitoring and control system is the core component of the aero-engine. With the rapid development of the overall aero-engine market in China and the continuous improvement of the electronic and information level of the aero-engine, the market prospect is broad. As a supplier of aero-engine monitoring electronic products for many years, Morninglight Aviation occupies an important position in the field of helicopter engine parameter collector products. In addition, the turboshaft engine full authority digital electronic control system developed by the company has also made great progress and has been listed in the supplier list of military aero-engine electronic control 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 tips. The risk of large fluctuations in military product orders; the company's new product listing process is slow.
