\u3000\u30 Chongqing Baiya Sanitary Products Co.Ltd(003006) 96 Chengdu Ald Aviation Manufacturing Corporation(300696) )
Private leading enterprise of aviation parts, focusing on aerospace manufacturing Chengdu Ald Aviation Manufacturing Corporation(300696) was established in 2004 and listed on the growth enterprise market of Shenzhen Stock Exchange in 2017. Focusing on the field of aerospace manufacturing, the company is mainly engaged in the precision manufacturing of military aircraft, civil aircraft parts, aeroengine parts and aerospace large structural parts, and has the whole process manufacturing capacity of aviation parts. The company’s main business is: CNC precision machining of aviation parts, special process processing and component assembly. The products include relevant parts of aircraft nose, fuselage, wing, tail and landing gear, engine parts and aerospace large structural parts.
Both revenue and profit increased and cash flow was abundant. On the evening of April 19, 2022, the company released the annual report and the first quarter report of 2021. In 2021, the company achieved an operating revenue of 614 million yuan (year-on-year + 102.12%), and a net profit attributable to the parent company of 255 million yuan (year-on-year + 86.47%). In the first quarter of 2022, the company realized an operating revenue of 177 million yuan (year-on-year + 63.10%), and a net profit attributable to the parent company of 66 million yuan (year-on-year + 40.95%). The operating cash flow increased from – 24 million yuan to 250 million yuan in 21 years, with a year-on-year increase of 1140.2%. The net increase of cash and cash equivalents in 21 years increased by 110054% year-on-year, mainly due to the increase of sales and payment collection in 21 years, and the funds raised by issuing shares to specific objects were in place. On the whole, the company continued to steadily promote various businesses, released new production capacity of precision CNC processing, changed its operating cash flow from negative to positive, and had abundant monetary funds.
As the core supplier of subordinate units of AVIC, the accounts receivable continued to grow, and the receivable turnover rate in 21 years was the highest in recent five years. With the continuous expansion of the company’s business scale, the amount of accounts receivable and notes of the company is large, accounting for 23.80% / 32.01% of assets in 21 / 22q1. 21 / 22q1 notes receivable and accounts receivable were 453 / 626 million yuan, with a year-on-year increase of + 49.32% / + 70.10%, mainly due to the payment receivable from military customers. Military customers had good credit and no bad debts. The turnover rate of accounts receivable in 21 years was 1.68 times, with a year-on-year increase of + 15.86%, the highest in recent five years, reflecting the improvement of the company’s collection speed.
The construction in progress in 21 years was + 785.50% year-on-year. When the capacity expansion was carried out, it provided support for future revenue. The company’s 21 / 22q1 construction in progress was 65 / 64 million yuan, a year-on-year increase of + 785.50% / + 48.78%. In September 2021, the CNC business of Xindu Branch / subsidiary of the company was put into operation, and the CNC production capacity was gradually released. In August of 21, the refinancing of 500 million yuan was completed by issuing shares to specific objects. The construction period of the aviation parts intelligent manufacturing and system integration center project is 2 years. Part of the project was put into operation in the third year and reached production in the fifth year. The annual income of 234 million yuan is expected. The project is progressing smoothly, from 9.30% in 21 years to 17.25% at the end of 21 years. In the future, it will lay a solid foundation for the double upgrading of the company’s production capacity industry.
Profit forecast and investment rating. We estimate that the EPS will be 1.59/2.31/3.12 yuan from 2022 to 2024. In combination with the PE valuation of comparable companies, the company will be given a PE valuation of 35 times in 2022, with a corresponding target price of 55.65 yuan, which will cover the rating of “better than the market” for the first time.
Risk warning: the construction progress of the project is less than expected; The intensification of industry competition brings the risk of price reduction; The scale of military expenditure or the progress of equipment installation are less than expected.
