Event: the company released its half-yearly report for 2021. From January to June 2021, the company achieved revenue of 226 million yuan (+ 100.17%), net profit of 108 million yuan (+ 89.85%), and non-return net profit of 106 million yuan (+ 103.67%).
Benefiting from the gradual mass production of relevant military models and the socialized cooperation strategy of AVIC, the company has achieved sustained and rapid growth in business income. 2021H1, the company achieved operating income of 226 million yuan, + 100.17%, mainly due to the gradual mass production of relevant military models that the company participated in, as well as AVIC's strategy of continuously deepening social cooperation, orders continued to increase; at the same time, the company's related process capacity was released one after another, and business income maintained a high growth. In a single quarter, 21Q2 achieved revenue of 118 million yuan and + 83.84%.
The gross profit margin decreased significantly, but the sharp decline in the expense rate kept the net profit rate high, and the net profit of 61 million yuan returned to 21Q2 reached a new high in a single quarter. 2021H1, the company's comprehensive gross profit margin of 63.26%, year-on-year-10.45 pct, of which the main business aircraft parts gross profit margin of 63.27%, year-on-year-14.17pct, we expect to be mainly compared with the same period last year to settle the impact of product structure differences, as well as staff compensation, equipment depreciation increase 21H1, with a net interest rate of 47.57% and a year-on-year rate of-2.59 pct, maintained a high profitability, mainly due to a sharp drop in the expense rate during the period. The 21H1 period fee rate was 6.77%, year-on-year-5.98 pct, of which: management rate 6.84%, year-on-year-5.70 pct, sales rate 0.16%, year-on-year-0.07 pct, financial rate-0.24%, year-on-year-0.22 pct. 21Q2, the company achieved a net profit of 61 million yuan, + 101.23%, a record high in a single quarter.
We will steadily promote the implementation of the transformation and upgrading strategy with equal emphasis on the "three legs" and constantly break through the growth curve. The company steadily implements the transformation and upgrading strategy of "tripod" focusing on precision manufacturing of key and important parts, special technology and assembly of parts: 1 CNC precision machining business: deepening the core technology of key, important and complex parts, actively promoting the production and operation of small batch flexible production lines, stabilizing the qualified rate of quality and improving the rate of just-in-time delivery. 2 special process business: optimize the production efficiency of relevant production lines, improve the output of each production line and capacity utilization rate; 3 parts assembly business: implement the assembly business of large parts of the fuselage of a certain type of UAV according to the plan, and implement the task of matching the three large parts of the front fuselage, the middle fuselage and the rear fuselage of the machine, and realize the upgrade of the whole process ability of the part process to the large parts.
Profit forecast and investment advice. We expect the company's 2021-2023 return net profit to be 2.44 yuan 3.42 / 452 million yuan, and the PE of the previous share price (closing price on 2021-8-24) is multiple of 52-37-28. Combined with the comparable company's PE valuation, give the company 55-60 times PE valuation in 2021, the corresponding reasonable value range is 54.92-59.91 yuan, maintaining the "better than the market" rating.
Risk hint: the construction progress of the project is not as expected; the intensified competition in the industry brings the risk of price reduction.