AVIC Hi-Tech (600862): The rapid growth of composite materials business accelerates the development of aviation materials and equipment platforms
Event: The company released its semi-annual report for 2019, which reported a total of 14 operating income.
USD 4.7 billion, an annual increase of 3.
94%, 61% of the annual work target was 武汉夜网论坛 completed.
67%; net profit attributable to mothers2.
5 billion US dollars, an annual increase of 97.
68%; net profit deducted from non-attributed mothers2.
2.6 billion, an annual increase of 102.
Comments: 1. The rapid growth of composite materials business, the simultaneous increase in revenue and gross profit margin pushed the performance to increase into the airline’s main business, and aviation new materials realized revenue (11.
5.7 billion yuan, +48.
04%), net profit (1.
9 billion, +122.
25%), of which, the aviation industry composite materials realized sales revenue (11.
2.5 billion, +49.
43%), total profit (2.
300,000 yuan, +95.
18%), net profit (1.
9.7 billion, +98.
66%); the machine tool business continued to reduce losses and realized sales revenue (49.19 million yuan, -44.
62%), profit growth (-23.71 million yuan, a year loss of 940 thousand yuan); real estate business realized sales income (2.
3.9 billion yuan, -54.
24%), net profit (1.
1.8 billion, -5.
The gross profit margin increased due to changes in the product structure of the composite materials sales of the aviation industry (the gross profit margin of the composite materials business in 2018 was 29.
52%) and sales scale growth, the profit of new materials business increased by 1 every year.
05 trillion, an increase of 122%, is the most important reason for the company’s current net profit surge.
In addition, during the original reorganization, the value-added amortization of the merger caliber resulting from the reverse acquisition of the constituent businesses even decreased by 10.59 million yuan, which also contributed to the increase in net profit.
2. Orderly exit of real estate business, accelerated construction of outstanding aerospace materials and equipment listed company platform company The real estate business exit work of the company has been steadily progressed, the equity transfer has been approved by the company’s board of directors, the shareholders’ meeting, and the proposed equity allocation has been completed.100% fair audit evaluation work, the evaluation result confirmed by the record is 10.
5.0 billion, and has been publicly listed for transfer on the Beijing Stock Exchange.
Jiangsu Zhihao achieved profit in 2018 (2.
8 billion yuan, +30.
80%), 2019H1 profit (1.
1.8 billion, -50.
16%), after the completion of the listed transaction, it will no longer repeat the scope of the company’s consolidated statement, which may have an impact on the company’s performance in the short term.
However, we believe that this move will gradually complete the company’s orderly exit from the actual business commitments within five years when the company’s major asset reorganization in 2015, and will also further focus on the development of new aviation materials, the main industry of aviation special equipment, and accelerate the creation of outstanding aviation materials and equipment.Company platform.
3. The market for composite materials business is large, increasing research and development and accelerating business development. The company’s new materials business includes composite materials, steel brake disc pairs, orthopedic implants. Among them, composite materials accounted for a large proportion of the company’s new materials revenue in 2018.94.
42%.Carbon fiber composite materials are widely used in many fields, especially in military and civil aviation equipment. The aviation industry composite materials have undertaken the production and supply of major military aircraft prepregs, and have occupied a share of aviation composite materials military products.
The company’s R & D expenses for 2019H1 are about 40.76 million yuan, an annual increase of 282.
52%, mainly due to increased investment in research and development of composite materials for the aviation industry, is expected to further enhance the company’s strength in the field of carbon fiber composite materials and accelerate the development of the company’s new materials business.
In addition, every year, we are moving from a large civil aviation country to a strong civil aviation country, with the world’s highest operating mileage of high-speed rail. The company’s civil aviation aircraft brake disc by-products and rail vehicle braking products, such as new material products, also face broad market demand.
4. Aviation Industry Group was selected as a state-owned capital investment and operation pilot, which is expected to bring reform dividends. Recently, the State-owned Assets Supervision and Administration Commission (SASAC) stated that relevant documents issued by state-owned enterprises holding listed companies to implement equity incentive operation guidance will be issued every year this year.
The equity incentives of listed companies controlled by state-owned enterprises are expected to accelerate, and the gradual reform of equity incentives and wages in the military industry is expected to usher in a substantial breakthrough, and the vitality of military industrial enterprises continues to increase.
United Nations, capital expenditure for reform program, operating company is authorized to delegate decentralization, this program is allocated, authorized capital investment, the board of operating company approves the subsidiary’s equity incentive plan, supports the invested companies to adopt stock budgets, stock appreciation rights, expand stocks, and dividends according to laws and regulationsRights, employee shareholding, and other incentives for distribution.
The aviation industry is the only company in the military industry group that has been selected for state-owned capital investment. The pilot operation is expected to lead the pace of reform again.
We believe that the company is expected to benefit from the dividends brought by the relevant reform policies.
5. Performance forecast Because the company’s real estate 深圳spa会所 business withdrawal is still in progress, the performance forecast is still based on the company’s existing business.
It is expected that the net profit attributable to mothers for 2019-2021 will be 3.
4.9 billion yuan, 4.
04 billion and 4.
580,000 yuan, giving a “strong recommendation-A” rating!
Risk reminder: technical risk of aviation product research and development; risk of less-than-expected progress in equity allocation; risk of less-than-expected progress in reform.