In the first three quarters of 23, the net profit of homing increased by 25.02% compared with the same period last year, maintaining the "buy" rating company to release the three-quarter report of 2023, with revenue of 2.195 billion yuan in the reporting period, an increase of 20.52% over the same period last year, and a net profit of 503 million yuan, an increase of 25.02% over the same period last year. Of this total, 23Q3 achieved an income of 877 million yuan, an increase of 23.11% over the same period last year, and a net profit of 207 million yuan, an increase of 18.14% over the same period last year.
It is estimated that the company's net profit from 2023 to 2025 will be 5.98 million yuan, 806 million yuan, and the corresponding PE will be 1 044 million times that of 47-35-27. According to the consensus expectation of Wind, the 24-year average PE of the comparable company is 40X. Considering the obvious technological advantages of the company and the high-quality resources backed by the Institute of Aeronautical Materials, the company is given a 24-year PE45X with a target price of 80.55 yuan (the previous value is 73.80 yuan) and a "buy" rating.
The downstream demand is good, and the cash flow has improved obviously.
In the first three quarters, the company's revenue end and home net profit maintained rapid growth, mainly due to the increase in market orders. In terms of gross profit margin, the overall gross profit margin in the first three quarters was 34.52%, a decline of 1.83pct compared with the same period last year. In terms of expense rate, the expense rate in the first three quarters was 8.29%, which was reduced by 0.85pct compared with the same period last year, of which sales expenses were 8.69 million yuan, accounting for 0.48% of income, management expenses were 46.25 million yuan, accounting for 2.54% of income, and R & D expenses were 133 million yuan, accounting for 7.30% of income. The company's operating net cash flow in the first three quarters was-35.17 million yuan, which was significantly better than that of-176 million yuan last year.
The market share of many businesses is high, and the position of the industrial chain is stable.
Many of the company's businesses correspond to a higher market share and industry status. 1) Titanium alloy casting business, the company can develop and produce most domestic aero-engine titanium alloy castings, which is one of the few domestic suppliers of international civil aviation titanium alloy castings; 2) Rubber and sealing materials, the necessary materials for military / civil aircraft, the business to achieve a number of domestic "first", leading domestic technological breakthroughs 3) transparent parts, key components of military aircraft, are the main suppliers of transparent parts for fighters and helicopters in China; 4) superalloy master alloy: domestic substitution at the supply end + strong consumables at the demand end, the company's "national team" has remarkable advantages. the products cover all the domestic batch of aero-engine superalloy master alloy products.
Good progress in market development, raising investment projects to increase production capacity
Since the beginning of this year, the company's business has shown a trend of double demand at home and abroad. In terms of the main domestic aviation industry, the company strives to ensure the development and production of various types of advanced equipment; in terms of export business, with the continuous recovery of international aviation business, the company further expands the international aviation equipment market and strives for a larger market share. At the same time, the company continues to expand its business development in the fields of aerospace, weapons, ships and high-end civilian products. The company's IPO project includes aviation high-performance elastomer materials and parts industry project, aviation transparent parts R & D / pilot line project, aerospace titanium alloy heat treatment and precision processing process upgrade project, etc., after the completion of the fund-raising project, the company's production capacity will be significantly increased, enhance the core competitiveness.
Risk hint: the risk of loss of core technical personnel and the risk of fluctuation of raw material purchase price.