Event: the company released the annual report, realizing operating income (964 million yuan, + 19.34%), return net profit (32 million yuan,-58.45%), deducting non-return net profit (30 million yuan, + 165.86%). The first quarter results forecast to achieve a return net profit of 7.5093 million yuan to 11.189 million yuan, turning a loss into a profit.
The income end increased steadily, and the profit and loss of fair value changes caused a certain drag on the steady operation of the main business of the beneficiary company, and maintained steady growth at the income end in 2020. Profits are affected by the decrease in the market value of the shares held in Guiyang Bank, resulting in a large decline in fair value changes in profit and loss, resulting in a sharp decline in net profit from the same period last year. According to the forecast, due to the continuous optimization of the company's product structure, the continuous improvement of production and operation efficiency, and the significant reduction in the amount of non-recurrent profit and loss compared with the same period last year, the company's 21Q1 homing net profit increased by 115.57% and 123.36%.
Net gross margin fell. In 2020, the company's gross profit margin fell 2.4pct to 39.5%, or mainly due to core equipment R & D and manufacturing and microelectronics business gross profit margin decreased by 4.96pct and 10.95pct respectively, but increased by 27.91% and 17.30% respectively. The sharp decline in net interest rate compared with the same period last year is mainly due to the 192.99% drop in fair value change profit and loss caused by the decrease in the market value of Guiyang Bank. Combined with the first quarter results forecast, the impact can be seen or gradually faded, and the subsequent profitability is expected to usher in some improvement.
Prepaid accounts and contract liabilities increased sharply, while cash flow declined. The overall inventory situation of the company in 2020 was relatively stable, and the prepaid accounts increased by 102.37% and 41.93% respectively compared with the beginning of the period, or reflected that the downstream orders of the company were in good condition and were actively preparing for production and production; the net cash flow of operating activities decreased by 24.11% compared with the same period last year, mainly due to the fact that the growth rate of cash outflow was higher than that of inflow, and the taxes and fees paid in 2020 increased by 12.14 million yuan compared with the same period last year.
With a breakthrough in high-end equipment manufacturing business, the company is expected to benefit from high-end core equipment development and support revenue of 269 million yuan in the long term, an increase of 58.68% over the same period last year, and effective coverage of major customers. At present, the company has determined three major scientific research directions: engine electronic control, rescue life-saving and helicopter / aircraft oxygen supply. In 2020, a total of 25 scientific research projects have been promoted synchronously, the engine electronic controller and winch projects have been mass-produced and delivered, and the localization of key components of a certain type of engine has been completed. The long-term cooperation project on oxygen supply system for domestic large aircraft in cooperation with COSCO has been landed.
In addition, the company broke through the bottleneck of the maintenance market in key areas in the field of aircraft maintenance, the amount of engine maintenance reached a new high, and the total maintenance hours increased significantly compared with the same period last year; in terms of basic capacity building, the company's self-designed and self-built engine test bench has completed performance testing and has been put into scientific research, which is expected to provide a solid guarantee for the company's engine incremental business in the future.
With the army as the main force and the people as the auxiliary, the third-generation semiconductor business steady growth company achieved rapid growth in high-performance integrated circuit design and manufacturing revenue in 2020, with an operating income of 166.7801 million yuan, an increase of 87.80% over the same period last year. Mainly due to the introduction and solidification of customer groups, the scale of science products and the release of some civilian products, capacity utilization and production line yield have increased steadily.
The related business shows a trend of rapid growth, 1) in 2020, the company has successfully introduced and solidified high-quality customers such as mainstream science and clothing institutes, and the business has developed steadily, and at the same time, the company has ranked among the best in R & D market orders. and is expected to gradually transform into a stereotyped project and achieve mass production in 2022. (2) civilian products, the company's 5G macro base station RF gallium nitride products have successively sent samples to well-known communication equipment suppliers for verification and customer introduction work is in full swing, it is expected that with the demand for macro base station chips, the company's product prospects are good; silicon-based gallium nitride products and optoelectronic VCSEL business have entered the stage of mass production; the filter has initial mass production capacity and is currently in the stage of product verification and optimization. It is expected that with the improvement of the company's capacity utilization and projection rate and the gradual expansion of the application market, the semiconductor business is expected to maintain steady growth in the future.
At the same time, according to the announcement, subsidiary Haiwei Huaxin plans to introduce investor Zhengwei Financial Control by way of capital increase and share expansion, the amount of capital increase is 1.289 billion yuan. After the completion of the capital increase, Zhengwei Gold Holdings holds 34.01% of Haiwei Huaxin, and the company's shareholding ratio is reduced from 51.21% to 33.79%. No longer included in the scope of the statement.
Layout MRO is beginning to take shape and is expected to go further in the future
In terms of aviation engineering technology and services, the company achieved an operating income of 384 million yuan in 2020, an increase of 12.89 percent over the same period last year. In 2020, the company completed a total of 126 route maintenance projects and 28 regular inspection and maintenance projects, consolidating the leading position of domestic business aircraft MRO. According to the company's plan, in the future, we will actively cut into the maintenance of accessories of domestic aircraft department and simulator department, and actively plan and steadily promote the supporting projects of domestic large aircraft.
The income of the flight training business affected by the epidemic dropped by 42.09% compared with the same period last year. After the epidemic was alleviated, the EC-135 helicopter flight simulator training business increased significantly, becoming a new business growth point of the company. In the future, the company is expected to actively expand the training business to South and North Asia markets, and the related business is expected to improve marginally.
Investment suggestion: the company's high-end equipment manufacturing business follows the model list, and after years of investment layout, under the background of domestic substitution and 5G about to enter large-scale commercial use, capacity utilization continues to improve, and future growth is expected. It is estimated that the company's net profit from 2021 to 2023 is 1.03,1.55 and 214 million yuan respectively, and the corresponding valuation is 104,69 and 50 times respectively.
Risk hint: the epidemic and Sino-US trade frictions affect the development of the electronics industry, and aviation orders are lower than expected.