\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 760 Avic Shenyang Aircraft Company Limited(600760) )
Event: Avic Shenyang Aircraft Company Limited(600760) released the annual report of 2021, realizing an operating revenue of 34.09 billion yuan in 2021, a year-on-year increase of + 24.8%; The net profit attributable to the parent company was 1.69 billion yuan, a year-on-year increase of + 14.6%; Deduct the net profit not attributable to the parent company of RMB 1.59 billion, a year-on-year increase of + 69.9%. The company also released the performance forecast for the first quarter of 2022. It is estimated that the operating revenue of 22q1 will be + 29% year-on-year; The net profit attributable to the parent company was 509 million yuan, a year-on-year increase of + 47.5%; Deduct the net profit not attributable to the parent company of 459 million yuan, a year-on-year increase of + 58.67%, and the performance in the first quarter made a good start.
The operating performance improved steadily, and the overall gross profit margin reached 9.8%. As a leading aviation equipment enterprise in China, the performance and efficiency of the company continued to improve, with a gross profit margin of 9.8% in 2021, an increase of 0.6 percentage points over 2020; The net interest rate was 5.0%, down 0.4 percentage points, which was mainly affected by the increase of expenses in the fourth quarter. 21q4 achieved a revenue of 9.17 billion yuan, a year-on-year increase of + 9.1%, and a net profit attributable to the parent company of 240 million yuan, a year-on-year decrease of 24.3%, mainly due to the significant increase in R & D expenses.
Continuously optimize operation management and continuously increase R & D Investment: the company’s financial management level is accelerated and the production and operation costs are effectively controlled. In 2021, the financial expense rate and management expense rate decreased by 0.7 and 0.2 percentage points respectively. With the deepening of the reform of state-owned enterprises, the “small core and large cooperation” model of the aviation industry is accelerated, and the vitality of state-owned capital continues to increase. As a backbone enterprise in the aviation industry, the operation efficiency of the company is expected to be further improved. The annual R & D expenditure reached 660 million yuan, up 130.4% from 290 million yuan in 2020. The company continued to increase R & D investment and orderly promoted pre research work, providing strong support for model cross generation research and transformation and upgrading development.
Contract liabilities increased significantly and the amount of related party transactions increased: the company’s contract liabilities at the end of 2021 were 36.54 billion yuan, an increase of 31.81 billion yuan compared with the beginning of the year, with a growth rate of 672.5%; The advance payment at the end of 2021 reached 21.68 billion yuan, an increase of nearly 20 billion yuan over 680 million yuan at the beginning of the year, mainly due to the increase of the company’s advance purchase payment. The substantial increase in contract liabilities and prepayments indicates that the company has strong downstream demand, large orders and sufficient production tasks. In 2022, the estimated amount of related party procurement (including receiving labor services) is 26.35 billion yuan, an increase of 42% over the actual amount in 21 years; It is estimated that the related sales amount (including the provision of labor services) is 5.63 billion yuan, an increase of 74.8% over the actual amount in 21 years.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 23 / 30 / 3.87 billion yuan respectively, and the current share price corresponds to 49 / 38 / 29 times of PE Avic Shenyang Aircraft Company Limited(600760) has strong core competitiveness and leading industry position in the field of aviation defense equipment, and the company will continue to benefit from the national defense modernization and the upgrading of aviation weapons and equipment. With high quality, high efficiency, low cost and sustainable development, we are optimistic about the continuous improvement of the company’s future performance and maintain the “overweight” rating.
Risk warning: the risk that the increase of aviation equipment budget is less than expected; Risk of untimely supply of finished products and parts; The risk that the development and batch production progress of key models is less than expected.
