\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 893 Aecc Aviation Power Co Ltd(600893) )
The company issued a performance announcement for 2021. In 2021, the company achieved a revenue of 34.102 billion yuan, a year-on-year increase of 19.10%, and completed 107.09% of the annual budget; Among them, the revenue of aeroengine and derivatives business was 31.884 billion yuan, with a year-on-year increase of 21.87%, accounting for 93.50% of the operating revenue and 106.67% of the budgeted value. The delivery of products of the company increased steadily. In 2021, the company realized a net profit attributable to the parent company of 1.188 billion yuan, a year-on-year increase of 3.63%; The deduction of non net profit was 706 million yuan, a year-on-year decrease of 19.05%, mainly due to the increase of after-sales support tasks, the reduction of social security relief and the increase of expenses during the period.
In the fourth quarter, the revenue maintained a substantial growth. In the fourth quarter of 2021, the company achieved a revenue of 15.759 billion yuan, a year-on-year increase of 19.71%; The net profit attributable to the parent company was 405 million yuan, a year-on-year decrease of 21.03%.
The gross profit margin and net profit margin of the company decreased in 2021. In 2021, the company’s gross profit margin was 12.49%, down 2.48 PCT from 2020; Among them, the gross profit margin of aeroengines and derivatives decreased by 2.86pct to 11.95%, and the operating cost increased by 25.95% compared with 2020, mainly due to the adjustment of product structure and the increase of the proportion of new products. In 2021, the company’s net interest rate was 3.61%, a decrease of 0.46 PCT compared with that in 2020, mainly due to the significant increase in sales expenses, which increased by 59.93% year-on-year.
The number of contract orders is full. As of the end of the reporting period, the company’s contractual liabilities amounted to 21.751 billion yuan, an increase of 675.34% over the beginning of the year, mainly due to the increase in advance payments received from customers, indicating a full number of orders. As of the end of the reporting period, the company’s prepayment was 2.753 billion yuan, an increase of 446.79% year-on-year, mainly due to the prepayment of supporting unit contracts. As of the end of the reporting period, the company’s net cash flow from operating activities was 16.704 billion yuan, a year-on-year increase of 362.90%, mainly due to the increase in advances received from customers.
Investment suggestion: the company is the only listed company of aero-engine assembly in China, which is scarce. In 2021, the company’s revenue increased significantly, the number of contract orders increased significantly, and its operation was stable. It is optimistic about the development of the company during the 14th Five Year Plan period. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.526 billion, RMB 2.188 billion and RMB 2.855 billion respectively, and the PE will be 73 times, 51 times and 39 times, which are rated as “prudent recommendation”.
Risk warning: the number of new orders is less than expected; Untimely upstream supply affects production; Procurement risk.
