\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 96 Chengdu Ald Aviation Manufacturing Corporation(300696) )
Key investment points
Event: the company released its 2021 annual report and the first quarterly report of 2022 on April 19. In 2021, the company achieved an operating revenue of 614 million yuan, a year-on-year increase of 102.12%, a net profit attributable to the parent company of 255 million yuan, a year-on-year increase of 86.47%, and a net profit deducted from non attributable to the parent company of 249 million yuan, a year-on-year increase of 87.70%. In 2022q1, the company achieved an operating revenue of 177 million yuan, a year-on-year increase of 63.10%, a net profit attributable to the parent company of 66 million yuan, a year-on-year increase of 40.95%, and a deduction of non attributable net profit of 63 million yuan, a year-on-year increase of 37.14%.
Performance continued to grow at a high rate, and the layout of the whole process was accelerated. On the revenue side, the company achieved an operating revenue of 614 million yuan in 2021, a year-on-year increase of 102.12%, and 177 million yuan in the first quarter of 2022, a year-on-year increase of 63.10%; The net profit attributable to the parent company in the first quarter of 2021 was RMB 4.02 billion, with a year-on-year increase of RMB 4.02 billion and a year-on-year net profit of RMB 4.02 billion. The company's main business covers the whole process of aviation parts and components, and CNC precision machining. In 2021, the CNC business of Xindu Branch / subsidiary was put into operation, and the new production capacity was gradually released; In terms of special processes, in 2021, the company's special process production line has established a perfect and stable management and control system, and the capacity utilization rate has increased steadily; In terms of component assembly, the company successfully completed the overall delivery of the fuselage section of a certain UAV in 2021. With the company's gradual expansion of multi process business in the industrial chain and the superposition of large-scale demand for relevant products, the advantages of the whole process are gradually reflected, and the performance is expected to continue to grow at a high rate.
The ability of cost control has been continuously improved and the R & D investment has been continuously increased. During 2021, the expense rate of the company was 6.19%, with a year-on-year decrease of 5.00 PCT, of which the sales expense was 01 million yuan, with a year-on-year increase of 47.53%, mainly due to the increase of transportation expenses; Financial expenses were -01 million yuan, a year-on-year decrease of 279.72%, mainly due to the increase in interest income from bank deposits; The R & D expenditure was 17 million yuan, with a year-on-year increase of 53.99%, mainly due to the increase in investment in technology R & D, testing and testing; The management fee was 21 million yuan, a year-on-year decrease of 4.22%. During the first quarter of 2022, the expense rate was 2.82%, a year-on-year decrease of 3.36pct. The company's cost control ability has been continuously improved, and at the same time, it has continuously increased R & D investment, which has effectively improved the company's core competitiveness and laid a good foundation for the company's long-term development.
The cash flow has changed from negative to positive, and the operating condition is expected to improve significantly. In 2021, the company's net cash flow from operating activities was 246 million yuan, compared with - 24 million yuan in the same period last year. The cash flow changed from negative to positive, indicating that the company's operating conditions have improved significantly; The net cash flow from investment activities was -289 million yuan, a year-on-year decrease of 495.44%, mainly due to the decrease in financial purchases due; The net cash flow from financing activities was 457 million yuan, a year-on-year increase of 314173%, mainly due to private placement. In 2021, the company's accounts receivable was 436 million yuan, a year-on-year increase of 48.82%, notes receivable was 16 million yuan, a year-on-year increase of 64.36%, monetary capital was 563 million yuan, a year-on-year increase of 276.06%, downstream demand continued to increase, and the company's cash position continued to improve.
The core competitiveness is expected to be further improved by expanding production and intelligent manufacturing. In August, 2021, the company raised 500million yuan to build an intelligent manufacturing center for aviation parts and components and supplement working capital. After the completion of the project, the company's theoretical production capacity will increase by 109.05% compared with that in 2020. After the project is completed, it is expected that the annual revenue will increase by 234million yuan and the net profit will increase by 60million yuan. On the one hand, after the completion of the raised investment project, the company's capacity bottleneck is expected to break through, and the carrying capacity of China's subcontracting and international subcontracting business is expected to be greatly improved; On the other hand, the raised investment project will use intelligent means to improve product quality, improve manufacturing efficiency, reduce product costs and resource consumption, and effectively avoid product manufacturing risks. The company's core competitiveness is expected to be further improved and the transformation from international subcontracting to direct suppliers is expected to be realized.
Investment suggestion: as the delivery progress of the company's Department decoration business exceeded expectations, we raised the revenue in 202223 to 895 million yuan and 1197 million yuan (the previous value was 755 million yuan and 1019 million yuan), increased the revenue in 2024 to 1.488 billion yuan, the net profit attributable to the parent company was 375 million yuan, 519 million yuan and 651 million yuan respectively, and the EPS was 154 million yuan, 213 million yuan and 266 yuan respectively, and the corresponding PE was 31.24x, 22.59x and 18.02x respectively. The company has focused on the aviation manufacturing field for 18 years, The whole process of aviation parts has significant advantages, which will fully benefit from the large volume of military aircraft and the batch production of domestic civil aircraft, and maintain the "buy" rating.
Risk warning: military orders are less than expected; Product delivery is not as expected; The profit forecast is lower than expected.
