Aecc Aviation Power Co Ltd(600893) ( Aecc Aviation Power Co Ltd(600893) . SH) announced on April 9 that in 2021, the company achieved an operating revenue of 34.102 billion yuan, a year-on-year increase of 19.10%; The net profit attributable to shareholders of listed companies was 1.188 billion yuan, a year-on-year increase of 3.63%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 7.06 yuan, a year-on-year decrease of 19.05%.
profit growth is less than revenue growth
According to the annual report, Aecc Aviation Power Co Ltd(600893) is the only enterprise in China that can develop a full spectrum of military aeroengines such as turbojet, turbofan, turboshaft, turboprop and piston. It is the only platform for the overall listing of aviation power under AVIC. Internationally, Aecc Aviation Power Co Ltd(600893) is one of the few enterprises that can independently develop aeroengine products. The company’s main businesses are divided into three categories: aeroengine and derivatives business, foreign trade export subcontracting business, non aviation products and other businesses. The main products and services include aeroengine and gas turbine complete machines and components, maintenance support services and export subcontracting of Aeroengine Parts.
During the reporting period, Aecc Aviation Power Co Ltd(600893) achieved a main business income of 33.665 billion yuan, with a year-on-year increase of 19.10%. Among them, the revenue of aeroengine and derivatives business was 31.885 billion yuan, with a year-on-year increase of 21.87%, mainly due to the increase of customer demand, the increase of product delivery and the decrease of gross profit margin, mainly due to the adjustment of product structure and the increase of the proportion of new products. The gross profit margin of aeroengine and derivatives business was 11.95%, a year-on-year decrease of 2.86 percentage points; The income from foreign trade export subcontracting business was 1.292 billion yuan, a year-on-year decrease of 14.42%, and the gross profit margin was 7.65%, a year-on-year decrease of 2.30 percentage points. The main reasons for the decline in revenue are: firstly, the scope of consolidation is reduced; secondly, affected by covid-19 epidemic, customers delay picking up goods or cancel orders, and the decline in gross profit margin is mainly due to the decrease in output and the increase in the proportion of fixed costs; The revenue from non aviation products and other businesses was 489 million yuan, a year-on-year decrease of 17.55%, and the gross profit margin was 27%, a year-on-year increase of 14.97 percentage points. The increase in revenue was mainly due to the decrease in material sales revenue of industrial and trade subsidiaries and the increase in gross profit margin, which was mainly due to the increase in sales of some high gross profit products.
The picture shows Aecc Aviation Power Co Ltd(600893) revenue structure. Source: annual report of the company
During the reporting period, the operating cost of the company was 29.842 billion yuan, with a year-on-year increase of 22.58%, which exceeded the operating revenue. The increase was mainly due to the expansion of business scale and the adjustment of product structure, and the increase of the proportion of new products.
During the reporting period, the company’s sales expense was 484 million yuan, with a year-on-year increase of 59.93%, mainly due to the increase of after-sales support tasks and sales service fees; The financial expenses were 734582 million yuan, a year-on-year decrease of 76.11%, mainly due to the abundant cash flow of the company, the increase of interest income and the decrease of interest expenditure; The investment income was 388 million yuan, an increase of 242.63% year-on-year, mainly due to the increase in the income from using its own temporary idle funds to purchase structural deposits this year and the increase in the income from the disposal of long-term equity investment.
2022 net profit target is 1.259 billion yuan
According to the annual report, in recent years, the state has attached importance to the development of domestic commercial civil aviation engines and Aecc Aviation Power Co Ltd(600893) actively participated in the development of civil aviation engines, seizing the first opportunity in China’s civil aviation engine market. Although the company will face some local competition in the military and civil markets in the future, it is conducive to the transformation and upgrading of the company by using social resources, upgrading the supply chain management and control mode and optimizing the industrial structure. Overall, Aecc Aviation Power Co Ltd(600893) will continue to maintain the leading position in China’s industry.
In 2022, the company is expected to realize an operating revenue of 38.429 billion yuan, including 36.270 billion yuan from aeroengines and derivatives, 1.471 billion yuan from foreign trade export subcontracting and 292 million yuan from non aviation products and other businesses. The net profit attributable to the parent company is expected to be 1.259 billion yuan. The above targets are expected values and are not performance commitments to investors.
In 2022, Aecc Aviation Power Co Ltd(600893) total investment plan is 859 million yuan, all of which are self owned funds.
In terms of R & D, in 2022, under the guidance of the “14th five year plan” technology development plan, the company will focus on product tasks, focus on the technical breakthrough, process improvement and quality improvement of core products, and systematically arrange and organize research work with the guiding ideology of “seeking effectiveness and ensuring delivery, strong innovation and development, and excellent management”. Promote the construction of digital and intelligent capabilities, continuously improve the “three capabilities” of engine assembly and commissioning, process research and application, and key parts manufacturing, quickly improve the technical support capability, continuously enhance the technological innovation capability, and continuously improve the technical management capability.
In order to achieve the above performance objectives, Aecc Aviation Power Co Ltd(600893) formulated a series of measures. First, comprehensively strengthen strategic management to ensure the effective implementation of planning objectives; Second, make every effort to accelerate scientific research and production to meet the needs of equipment development; Third, comprehensively accelerate the pace of promotion and achieve the goal of “preliminary completion” of the system; Fourth, vigorously promote the “three-year capacity improvement” to further improve the supply chain management and control ability; Fifth, comprehensively tackle key problems in reform and conclude the three-year reform action of state-owned enterprises; Sixth, fully strengthen the management and control ability and effectively improve the efficiency of quality management; Seventh, comprehensively strengthen technological innovation and consolidate the foundation of high-quality development; Eighth, comprehensively strengthen basic management and systematically improve support capacity; Ninth, fully promote the party building and forge the heart, and deeply cultivate and develop the red gene.
