\u3000\u3 China Vanke Co.Ltd(000002) 013 Avic Electromechanical Systems Co.Ltd(002013) )
Event: Avic Electromechanical Systems Co.Ltd(002013) released the annual report of 2021, and achieved a revenue of 14.99 billion yuan in 2021, a year-on-year increase of + 22.6%; The net profit attributable to the parent company was 1.27 billion yuan, a year-on-year increase of + 18.3%; Deduct the net profit not attributable to the parent company of RMB 1.11 billion, a year-on-year increase of + 22.5%. The company has preliminarily formulated its business objectives for 2022: to achieve sales revenue of 15.447 billion yuan and total profit of 1.674 billion yuan.
The revenue exceeded the target, and the growth rate of aviation business reached a new high in recent years: in 2021, the company's sales revenue target was 13.605 billion yuan, and the actual revenue was 14.992 billion yuan, achieving 110.2% of the annual business target; Among them, the revenue of aviation business was 11.16 billion yuan, a year-on-year increase of + 23.8%, with a new growth rate in recent years. The company continued to increase R & D investment, and invested 776 million yuan in R & D expenses in 2021, with a year-on-year increase of 30.8%; The financial expenses were - 87.97% year-on-year, amounting to 20.43 million yuan. The total amount of advance receipts and contract liabilities reached 2.56 billion yuan, a year-on-year increase of + 566.7%; The internal business of AVIC group was stable, and the related sales amount was 8.59 billion yuan, a year-on-year increase of + 49.1%, which verified the strong demand in the downstream and the high outlook of the industrial chain.
With the joint efforts of military aircraft and civil aircraft business, the aviation electromechanical platform has broad potential. The "14th five year plan" is a key period for China to accelerate the modernization of national defense and the army and "ensure the achievement of the Centennial goal of building the army in 2027". China's military aviation is in the accelerated trend of new model loading, train loading and large-scale of multiple aircraft types. The electromechanical system of military aircraft will benefit and maintain high-speed growth, which is the core driving factor of the company's endogenous growth. Relying on the core technical advantages of military aviation, the company vigorously expands civil aviation products. With the release of domestic civil aircraft production capacity represented by C919 and the further improvement of the localization rate of civil aircraft electromechanical system, the market scale potential of civil aircraft electromechanical system of the company will also be huge in the future. The company has participated in the research and development of airborne products of various models such as China civil aircraft C919, Jiaolong 600, ma700 and Changjiang series engines, highlighting the position of capital integration platform of aviation electromechanical business.
Focus on the main aviation industry and peel off non core assets: with the rapid development of the aviation industry, the product iteration speed is improved, the use intensity is increased, the concentration to life is increased, and the demand for professional maintenance support is increased accordingly. The company laid out the aviation electromechanical maintenance industry in advance, created a one-stop aviation maintenance service mode, and established a leading position in the aviation electromechanical maintenance business field. At the same time, the subsidiary Qing'an refrigeration will be restructured. It is expected that it will no longer be included in the scope of the company's consolidated statements after the reorganization, and further focus on the main aviation industry.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.59/19.7/2.5 billion respectively, and the corresponding PE of the current stock price is 26 / 21 / 16 times. The demand for military and civil aviation equipment has increased, and the localization level of aviation electromechanical system has improved. As an aviation electromechanical business platform, the company will continue to benefit. For the first time, give a "overweight" rating.
Risk warning: the risk of mass delivery of products; Risk of VAT policy adjustment; Risk of price fluctuation of raw materials; The risk that the R & D Progress of new models is less than expected.
