\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 760 Avic Shenyang Aircraft Company Limited(600760) )
Event: the company released its 2021 annual report, and achieved an annual operating revenue of 34.088 billion yuan, a year-on-year increase of 24.79%; The net profit attributable to the parent company was 1.696 billion yuan, a year-on-year increase of 14.56%; The non net profit deducted was 1.597 billion yuan, a year-on-year increase of 69.93%.
Comments:
The deduction of non net profit increased significantly year-on-year, highlighting the improvement of profitability: considering that the company has received large government subsidies in 20 years, the increase of deduction of non net profit in 21 years can better reflect the improvement of the company’s profitability. The gross profit margin of the company’s sales in 21 years reached 9.76%, which is the highest level in history since the company’s reorganization and listing. On the one hand, the improvement of profitability benefits from the scale effect brought by mass production after the finalization of the current main models. On the other hand, it is also inseparable from the company’s efforts in fine management and operation efficiency improvement.
The R & D expenses increased significantly and the financial management level improved: the R & D expenses of the company reached 663 million yuan in 21 years, with a year-on-year increase of 130.34%, of which the R & D expenses of Q4 reached 277 million yuan, with a year-on-year increase of 176%. The increase of R & D investment is expected to enhance the competitiveness of the company in subsequent development. In terms of financial expenses, interest income increased significantly. The cash flow from operating activities reached 10.1 billion yuan, a year-on-year increase of 59.73%; Accounts receivable decreased by 26.26% year-on-year, mainly due to the increase in payment received from customers and the increase in the proportion of payment received before the end of the year.
Sufficient orders, active production preparation and giving full play to the role of “chain leader” of the main engine factory: by the end of the 21st century, the company’s contract liabilities were 36.5 billion, an increase of 672.50% year-on-year, mainly due to the increase in advance receipts received. The large amount of advance receipts to a certain extent reflects the company’s sufficient order volume. Prepayments amounted to 21.7 billion, a year-on-year increase of 308545%, mainly due to the increase in prepayment for purchase, reflecting the company’s active production preparation. As a main engine factory, the company has sufficient advance purchase payment, which is expected to better assume the role of “chain leader” of the industrial chain and layout and optimize the supporting capacity of each link upstream of the industrial chain in advance.
Profit forecast, valuation and rating: in order to improve the company’s competitiveness and the sustainability of subsequent development, the company’s R & D expenses may continue, and the profit level may fluctuate in the process of R & D of new products. The company’s profit forecast for 20222023 is lowered by 10.62% / 8.65% to 2.187 billion yuan / 2.695 billion yuan, and the profit in 2024 is predicted to be 3.216 billion yuan, and the EPS in 20222024 are 1.12, 1.37 and 1.64 yuan respectively, The PE corresponding to the current stock price is 52X, 42x and 35x respectively. Driven by the needs of Upgrading Chinese fighters and developing aircraft carriers, the company, as a leading enterprise in the production of Chinese fighters, is expected to continue to improve its income scale and profitability and maintain its “overweight” rating.
Risk warning: the risk of untimely supply; Quality risks caused by inadequate quality control; The risk of technological innovation not reaching the predetermined goal; Risk that customer orders are affected by national defense policies and military equipment procurement investment.
