Event
On August 29, Jianghang equipment released its 2023 semi-annual report. 2023H1, the company achieved revenue of 634 million yuan, an increase of 8% over the same period last year, and a net profit of 134 million yuan, down 9% from the same period last year.
Comment
1. Maintain rapid growth in revenue from aviation products and expand new markets such as civil aviation. 2023H1, the company's aviation products achieved business income of 48400 yuan, an increase of 20% over the same period last year. In the first half of the year, in addition to fulfilling orders normally, the company's aviation equipment business has further expanded new products and new markets, oxygen production and supply products, auxiliary fuel tanks and airborne fuel tank inerting protection systems for winning the bid. At the same time, actively strive for annual equipment, aviation materials and maintenance business. In the civil aviation field, the CR929 inerting system bidding project signed a technical agreement with Comac, and the CR929 oxygen system bidding project completed the joint test of the unit oxygen system engineering prototype system. In addition, the company's bellows subcontract business has won the Safran Aviation oxygen system Award issued by Safran Group, and the company has become one of the top three excellent suppliers of Safran Aviation oxygen Systems in 2022.
2. The short-term income and profit of the subsidiary of the refrigeration business have declined, and the expansion of new business and new areas has laid the foundation for future growth. 2023H1, a subsidiary of Swan Refrigeration, was affected by short-term market demand and other factors, resulting in a decline in revenue and profits of 79.72 million yuan, down 40% from the same period last year, and net profit of-11.75 million yuan, a decrease of 20.29 million yuan over the same period last year. In terms of refrigeration business, the company further strengthened the in-depth penetration of the market and the expansion of new business and new areas, and successfully won the bid for three certain projects, including a shore-based observation station, and successfully won the bid for two air-conditioning models and one oxygen-making machine model of a certain military surgical vehicle project. It is expected that a batch of 50 sets each will be formed by 2025, and the 30007 project of an aerospace institute will be won, supporting special cabin air conditioning for the Navy 055 project. Industrial air conditioners support a number of iron and steel mills.
3, the gross profit margin of sales is lower than the same period last year 3.01pcts or dragged down by the refrigeration business, the company's expenses are well controlled. 2023H1, the company's gross profit margin of 38.49%, down 3.01pcts from the same period last year, or dragged down by the decline in gross profit margin of the company's refrigeration business. In 2023, the gross profit of the subsidiary swan refrigeration decreased due to the influence of market demand, policy changes, income structure and international environment. The company's expenses are well controlled. The 2023H1 four-fee rate is 15.28%, which is lower than the same period last year. Among them, the management, sales and R & D expense rates are reduced by 1.07pcts, 0.74pcts and 0.26pcts to 9.84%, 1.69% and 5.20% respectively, and the financial expense rate is increased by 0.46pcts to-1.45% compared with the same period last year.
4. We estimate that the return net profit of the company from 2023 to 2025 will be 3.15,3.95 and 486 million yuan respectively, and the corresponding share price PE will be 31,25 and 20 times respectively, maintaining the "buy" rating.
Risk hint
Military orders are lower than expected; the price reduction of military products exceeds market expectations; and market expansion falls short of expectations.