\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 705 Avic Industry-Finance Holdings Co.Ltd(600705) )
Event: the company disclosed its 2021 annual report, realizing an operating revenue of 19.084 billion yuan, a year-on-year increase of + 4.05%, a net profit attributable to the parent of 4.471 billion yuan, a year-on-year increase of + 36.56%, a basic earnings per share of 0.51 yuan, a year-on-year increase of + 37.84%, and a weighted average return on net assets of 10.71%, a year-on-year increase of 0.25 PCT.
The company’s performance exceeded our expectations. The main highlights are: 1) record high performance and growth rate. The net profit attributable to the parent company was 4.471 billion yuan, a year-on-year increase of + 36.56%. The net profit and growth rate reached a new high since 2015, mainly due to the stable growth of the performance of the company’s member units and the rise in the fair value of the shares of listed companies held by the company; 2) Focus on the development orientation of Industrial Finance and make outstanding achievements. The company actively serves the main business, industrial chain, new economy and industrial finance business direction of aviation industry group. In 2021, the company obtained revenue from real industries of 9.199 billion yuan and total profit of 4.43 billion yuan, including profits from aviation, strategic emerging and green industries of 3.292 billion yuan, 707 million yuan and 729 million yuan respectively.
The main business of leasing was stable, and the business scale of aviation sector doubled. AVIC leasing achieved an operating revenue of 10.303 billion yuan, a year-on-year increase of + 1.75%, a net profit of 1.99 billion yuan, a year-on-year increase of + 0.81%, and a contribution to the company’s performance of 43.68%. The number of leasing contracts signed by the aviation industry sector is expected to increase by $14.27 billion, with a year-on-year increase of $14.27 billion. As the only major leasing company in the industry sector, the number of leasing contracts signed by the aviation industry sector is expected to further increase by $14.27 billion, reflecting a year-on-year increase of $10.6 billion.
The structure of trust assets was optimized, and securities and financial subsidiaries achieved good growth. 1) AVIC trust realized a net profit of 1.679 billion yuan, a year-on-year increase of – 15.24%. The total assets of the company’s trust were 677471 billion yuan, a year-on-year increase of + 1.9%, of which the collective, single and property management rights accounted for 71%, 11% and 18% respectively, + 0pct, – 12pct and + 12pct respectively. The company continued to promote the active management transformation and further optimized the asset structure. 2) AVIC securities achieved a net profit of 809 million yuan, a year-on-year increase of + 24.27%. Benefiting from the improvement of market activity, AVIC securities achieved good growth in its main businesses. The brokerage, investment banking and asset management business segments achieved revenue of 583 million yuan, 279 million yuan and 320 million yuan respectively, a year-on-year increase of + 13%, + 10% and + 129% respectively. 3) AVIC finance realized a net profit of 657 million yuan, a year-on-year increase of + 15.27%, and its operation was relatively stable.
Closely focusing on the main aviation industry, industrial investment has developed rapidly. In the overall investment sector, in 2021, the company realized an investment income (including profit and loss from changes in fair value) of 3.270 billion yuan, a year-on-year increase of + 25.74%. The two platforms of emerging industry investment and aviation industry investment of the company focused on the strategic emerging industry and aviation industry. In 2021, the net profit was 233 million yuan and 22 million yuan respectively, a year-on-year increase of + 258% and – 12% respectively.
Investment suggestion: maintain the Buy-A investment rating. We raised the company’s profit forecast. It is estimated that from 2022 to 2024, the company will realize net profits attributable to the parent company of 4.9 billion yuan, 5.4 billion yuan and 5.9 billion yuan respectively, with a year-on-year target price of 5.5 yuan and a corresponding P / E of 10x in 2022.
Risk tip: macroeconomic downturn / trust transformation is less than expected / strategic promotion is less than expected
