Event: on January 14, the company issued a performance forecast for 2020, and the company expects to achieve a net profit of 95 million yuan to 100 million yuan in 2020, an increase of 29.87% and 36.71% over the same period last year.
The business is expanded and the profitability is enhanced. The company expects to achieve a net profit of 95 million to 100 million yuan in 2020, an increase of 29.87 percent over the same period last year. The growth in performance is mainly due to the fact that sales management ensures the acquisition and implementation of major business opportunities, the delivery of products and the progress of major scientific research projects; in addition, the company carries out total quality management, optimizes organizational structure, performance management and operational efficiency of the company, coupled with preferential social security policies, the premium rate has been reduced during the period.
The company promotes the layout of multiple industrial lines and develops strategic new businesses. The company's main business includes airborne equipment development, aviation maintenance, measurement and control equipment development and information technology business, etc., the company always layout and continue to develop strategic emerging business, such as in the field of measurement and control equipment development business, focus on aerospace and defense research and production units to provide customers with intelligent products. The growth of intelligent manufacturing business is slow in the short term, but it has a broad space for development and demand market, which will promote the long-term improvement of the company in the future. The company has continued to increase R & D investment and personnel reserve in recent years, and two new office plants have been added and put into operation in 2018, and the technical strength is expected to be further enhanced in the future.
With the rapid development of aerospace defense industry, the subdivided track occupies the leading position. Aerospace and defense industry belongs to the field of high-end equipment manufacturing, which is the key industry of the national economy. With the regional conflicts, external threats and the diversification and information development trend of combat modes, the demand for new technology and equipment is becoming more and more urgent. The company is committed to becoming a comprehensive system equipment and technical solution provider in the field of aerospace and defense. At present, many products and businesses occupy a leading position in the subdivision field. Helicopter anti-crash seats, transport aircraft kitchen and bathroom interior decoration, helicopter protective armor, some models of radio compass and radio altimeter and other products are the preferred suppliers for relevant customers. With the continuous strengthening of the construction of national defense force, the downstream demand of the company's products is expected to remain prosperous.
Profit forecast and investment advice: we predict that the company's operating income from 2020 to 2022 will be RMB 751 million, an increase of 35.89%, 28.45%, 27.63%, and a net profit of RMB 1.00 million, an increase of 36.80%, 32.30%, 32.32%, respectively, and a year-on-year increase of 36.80%, 32.30% and 32.32%, respectively, for PE from 2020 to 2022. Maintain a "buy" rating.
Risk hints: the growth of military expenditure is not as expected; the growth of accessories maintenance business of the Ministry of Civil Aviation is not as expected; the results of fund-raising projects are not as expected; COVID-19 's epidemic situation has a negative impact on the company's product delivery or daily operation.