\u3000\u3000 Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) (002985)
It is mainly engaged in aviation brake, landing gear and other businesses, with a compound growth rate of 44% and 45% in revenue and profit in the past three years
The company is a leading supplier of China's military aviation brake products. Based on brake discs, brake wheels, control systems and other products, the company gradually extends to the landing gear landing system, continuously highlights its core position in the field of aircraft braking, and develops step by step from a parts supplier to a system integrator;
Strong profitability and steady growth: the main products are aviation brakes, component testing and landing gear business. The revenue accounts for 43%, 48% and 7% respectively in 2021h1. The compound growth rate of revenue of brake products in recent three years is 32%, and the compound growth rate of net profit attributable to the parent company is 35%. It has maintained a high gross profit rate of more than 70% for a long time. The company has strong profitability and outstanding core advantages.
Military brake: the core supplier of the main battle model, benefiting from the rapid rise in the installation, maintenance and replacement of new aircraft trains
The company is a key supplier of brake products for military main battle aircraft. Brake products benefit from the synchronous and steady growth of new aircraft train installation; Brake products are consumables. The demand for products will accelerate the replacement of stock with the increase of actual combat drill frequency. Considering the synchronous train loading demand of new models, it is estimated that the average annual demand will be 2.8 billion from 2021 to 2025, with a compound growth rate of 23%; The company's products are long-term supplied to the downstream main models, with a stable market share and high R & D strength, so as to continuously ensure the follow-up research and development of new models.
Civil brake: cut into the long-term supply list of aviation company and open the development ceiling
The company acquired 67% equity of blue Pacific Airlines on December 2020, quickly entered the civil aircraft brake Market with a number of PMA civil aviation licensing qualifications, and signed a ten-year purchase agreement with Hainan Airlines and Xiangpeng airlines on January 2022, officially opening the civil aviation supply market. It is expected that the average annual market demand from 2021 to 2025 will exceed 1 billion, with a compound growth rate of 15%.
The landing gear is recognized by CNAs and extended to the downstream integrator of the industrial chain
Landing gear: the company has the integration advantage of landing gear whole system design, manufacturing and test capability, further highlights the comprehensive technical strength through CNAs recognition, develops to terminal system integrators by extending the industrial chain downward, and considers the new + train loading demand of military aircraft in the future. It is expected that the growth rate of landing gear revenue will exceed that of the whole downstream machine.
Jinghanyu subsidiary: the whole pedigree of military components has high returns, and the preparation for listing has been started
The company holds 51% equity of jinghanyu subsidiary and mainly provides reliability testing and other services, forming a mature and comprehensive testing system for electronic components. In order to improve the company's sustainable profitability and competitiveness, the company has started the preliminary preparations for the spin off of jinghanyu to the listing of domestic stock exchanges
Profit forecast and valuation
It is estimated that the net profit from 2021 to 2023 will be 440 million, 670 million and 920 million, with growth rates of 40%, 51% and 37% respectively, and a compound growth rate of 43%, pe51, 34 and 25 times. It is covered for the first time and given a buy rating.
Risk tips
Risk of untimely recognition of operating income; The risk that the development of civil products market is less than expected; The risk that the military equipment is not as expected.
