\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 879 China Aerospace Times Electronics Co.Ltd(600879) )
Event: the company recently released its 2021 annual report, with annual revenue of 15.99 billion yuan, yoy + 14.1%; The net profit attributable to the parent company is 550 million yuan, yoy + 14.8%; Deduct non net profit of 490 million yuan, yoy + 20.9%. The company's performance growth returned to the double-digit level, and the annual performance was in line with the previous market expectations.
The revenue side is relatively balanced in the quarter, and the expense side is more in the second half of the year. In a single quarter, the company achieved revenue of 2.89 billion yuan, 3.97 billion yuan, 4.15 billion yuan and 4.98 billion yuan in 2021q1 ~ q4:1) respectively. The revenue increased quarter by quarter, mainly due to the impact of aerospace product production cycle and delivery plan; 2) The net profit attributable to the parent company is 128 million yuan, 197 million yuan, 104 million yuan and 119 million yuan; 3) The annual gross profit margin increased by 1.08ppt to 20.07% year-on-year, mainly due to the increase in the proportion of high gross profit aerospace products; The net interest rate decreased by 0.06ppt to 3.72% year-on-year, mainly due to the increase of period expenses.
Changes in product structure resulted in a slight increase in gross profit margin. In terms of products, 1) in 2021, the company's aerospace product revenue was 11.72 billion yuan, yoy + 16.3%, accounting for 73.3% of the total revenue, and the gross profit margin increased by 2.1ppt to 22.6% year-on-year. From 2018 to 2021, the proportion of the company's aerospace product revenue increased from 60% to 73%, and the gross profit margin increased due to structural changes. 2) The revenue of civil products was 4.11 billion yuan, yoy + 10.2%, and the gross profit margin decreased by 0.5ppt to 11.3% year-on-year. From the perspective of molecular companies, 1) the revenue of aerospace Long March is 2.44 billion yuan, yoy + 10.0%; Net profit of 120 million yuan, yoy-28.3%; 2) Aerospace Guanghua's revenue is 1.45 billion yuan, + 25.7%; Net profit: 68 million yuan, yoy + 34.0%; 3) Aerospace Feihong's revenue is 780 million yuan, yoy-11.0%; The net profit was 58 million yuan, yoy + 3.2%.
R & D expenses continue to increase; It is proposed to increase 4.1 billion yuan to promote the industrialization of scientific research achievements. During 2021, the company's expense rate increased by 1.22ppt to 15.43% year-on-year, specifically: 1) the management expense rate was 7.4%, with a year-on-year increase of 0.4ppt; 2) The sales expense ratio was 2.0%, with a year-on-year increase of 0.3ppt; 3) The R & D cost is 720 million yuan, yoy + 25.7%; The R & D expense rate was 4.5%, with a year-on-year increase of 0.4ppt. By the end of 2021, 5) the company's contract liabilities were 2.53 billion yuan, an increase of 42.2% over the beginning of the year, mainly due to the increase in sales receipts; 6) The net operating cash flow was 240 million yuan, a decrease of 50.3% over the beginning of the year, mainly due to the increase of labor costs and various taxes. In December 2021, the company will increase 4.1 billion yuan, mainly for the industrialization of intelligent unmanned system equipment, intelligent electronics and satellite communication products, and inertial navigation system equipment. The promotion of the project will help the industrialization of the company's scientific research achievements.
Investment suggestion: we believe that the company's core business China Aerospace Times Electronics Co.Ltd(600879) products will continue to maintain steady growth during the 14th Five Year Plan period, and the market share will rise steadily. Unmanned systems and high-end intelligent equipment products are currently in the growth stage and are expected to break through quickly and become a new growth point. We expect the net profit attributable to the parent company from 2022 to 2024 to be 632 million yuan, 721 million yuan and 813 million yuan respectively. The current share price corresponds to 28x / 24x / 22x PE from 2022 to 2024. Considering the advantages of the company's traditional business and the rapid development of unmanned equipment system business, we give 30 times PE in 2022, EPS of 0.23 yuan / share in 2022, and the corresponding target price of 6.90 yuan. For the first coverage, give a "recommended" rating.
Risk warning: the progress of the raised investment project is not as expected; The production and delivery of products are not as expected.
