Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) (002985)
Event: Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) it was announced on January 3 that the carbon carbon composite brake disc of the company passed the assessment, verification and evaluation between HNA Aviation Technology Co., Ltd. and Xiangpeng aviation, and signed a ten-year aviation material procurement and supply agreement, which will take effect from January 1, 2022.
Entering the supply chain system of aircraft material replacement of civil aviation of China, the pace of domestic replacement of carbon carbon composite brake discs has accelerated: aircraft brake discs are one of the most critical components for aircraft braking and ensuring safe flight. They need to be replaced when taking off and landing meet a certain number of times. The braking field of civil aviation in China has long been monopolized by foreign giants. There is an urgent demand for independent control and domestic substitution, and the relevant policy support is increasing. The company acquired Shaanxi Lantai, which is the enterprise with the most and most complete PMA licenses for civil aviation aircraft carbon brake discs in China. The advantages of technical products complement the advantages of Lantai qualification certification. This time, it officially entered the supply chain system of aviation material replacement of civil aviation aircraft of China. In the future, the pace of domestic replacement of carbon carbon composite brake discs will accelerate and release huge market space.
Based on military products, the civil aviation business is expected to become a new growth point: the company’s main revenue comes from military products. Its products include brake discs, wheels and aircraft brake control systems, landing gears, etc., which are widely used in key military equipment such as fighter aircraft, bombers, transport aircraft, trainer aircraft, military trade aircraft, helicopters, aerospace high-altitude aircraft and tank armored vehicles. In the first half of this year, the company realized downstream landing gear business revenue and completed the leap from parts suppliers and material suppliers to system suppliers and overall solution providers. The product has entered the air material replacement supply chain system of CAAC aircraft this time, and is expected to expand horizontally to other aircraft models of CAAC in the future. China’s civil aircraft stock + incremental market will bring a large air material replacement market. In the past, the proportion of the company’s civil products business was low, and the revenue of civil products accounted for about 11% in the first half of 2021. In the future, the civil aviation business is expected to become a new growth point, driven by military products and civil products, opening up growth space.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 483 / 695 / 955 million respectively, and the corresponding PE of the current stock price is 64 / 44 / 32 times. Based on the field of aircraft braking, the company has significant advantages in technology and products. This time, it has entered the supply chain system of aviation material replacement of civil aircraft. The performance of two wheel drive of military products + civil products has increased. It has been covered for the first time and is rated as “overweight”.
Risk warning: the risk that the development of downstream airlines’ customers is not as expected; The risk that the epidemic situation repeatedly affects China’s civil aviation market; The risk of lower gross profit margin due to the decline of military procurement price.
