\u3000\u3 Guocheng Mining Co.Ltd(000688) 586 Hefei Jianghang Aircraft Equipment Co.Ltd(688586) )
Core conclusion
Focusing on aviation equipment supporting business, the company has full orders in hand Hefei Jianghang Aircraft Equipment Co.Ltd(688586) is the core subordinate enterprise of AVIC's airborne sector. It is mainly responsible for the R & D and manufacturing of aviation oxygen system, airborne fuel tank inerting protection system and aircraft auxiliary fuel tank. The special supporting relationship makes the company an absolute leader in the aviation segment market. In recent years, the company has carried out mixed system reform by withdrawing from non core main business, streamlining personnel, introducing war investment and employee stock ownership, and greatly improved operating efficiency. In 2021, the company realized an operating revenue of 953 million yuan, a year-on-year increase of 14.72%, and the net profit attributable to the parent company in the same period was 231 million yuan, a year-on-year increase of 19.23%. The military industry track has the characteristic of setting production according to demand. At the end of the year, the company's inventory was 6885 million yuan, with a year-on-year increase of 68.87%, reflecting the order boom of Hefei Jianghang Aircraft Equipment Co.Ltd(688586) .
Advanced military aircraft will soon be installed, and aviation supporting business welcomes development opportunities. The 14th Five Year Plan period is to achieve
During the critical period of the "Centennial goal of building the army" in 2027, Chinese military aircraft are currently in a period of accelerated volume, and the iteration speed is expected to be further improved. It is estimated that as the only supplier of supporting oxygen systems for military aircraft, we will be able to accelerate the production of air fuel tanks of about RMB 14 billion in the downstream market, and will be the only supplier of supporting oxygen systems for military aircraft.
The military and civil refrigeration business and aerospace business have the first mover advantage and full potential for diversified development. The company's military special refrigeration equipment has achieved a 60% share of the army market and gradually achieved full military coverage. At the same time, swan refrigeration, a wholly-owned subsidiary, has actively explored the civil industrial special air conditioning and special vehicle air conditioning market; In addition, the company's sensitive components business is in the field of manned aerospace, and the gross profit margin has remained at 50% - 60% in the past two years. The number of orders for this business has gradually increased, helping the future development of the enterprise.
Investment suggestion: we expect that the company will realize a net profit attributable to the parent company of RMB 339 / 506 / 747 million in 22-24 years, with corresponding EPS of RMB 0.84/1.25/1.85/share respectively. Considering the certainty of the company's performance and its monopoly position in the subdivided track, we give Hefei Jianghang Aircraft Equipment Co.Ltd(688586) 22 year target PE 36 times, corresponding to the target price of 30.24 yuan / share, the first coverage, and give a "buy" rating.
Risk tips: 1 The expenditure on national defense equipment was lower than expected and 2.5% The loading and iteration speed of military aircraft was lower than expected, 3 The demand of civil products refrigeration business was lower than expected, 4.5% The competition pattern of special refrigeration business has deteriorated.
