\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 75 Xi’An Triangle Defense Co.Ltd(300775) )
Event: Xi’An Triangle Defense Co.Ltd(300775) released the 2021 annual report. In 2021, the company achieved an operating revenue of 1.17 billion yuan, a year-on-year increase of + 90.7%; The net profit attributable to the parent company was 410 million yuan, a year-on-year increase of + 101.7%; Deduct the net profit not attributable to the parent company of 410 million yuan, a year-on-year increase of + 121.6%. The company also released the first quarterly report of 2022. In the first quarter, the operating revenue was 430 million yuan, a year-on-year increase of + 127.1%; The net profit attributable to the parent company was 140 million yuan, a year-on-year increase of + 89.6%; Deduct the net profit not attributable to the parent company of 140 million yuan, a year-on-year increase of + 97.8%.
The revenue and profit of 21q4 and 22q1 reached a new high: the company’s products are special alloy forgings, which are mainly used to manufacture aircraft fuselage structural parts and aeroengine discs; It has entered the supplier list of major main engine manufacturers in China, and its products have been applied to the new generation of fighters, new generation of transport aircraft and new generation of helicopters. In 2021, the company will actively seize the market share of China’s forging products. While consolidating the existing market share, the company will tap the market potential, consolidate the orders of old models, and drive the increase of sales with new product research and development. 21q4 achieved a revenue of 407 million yuan, a year-on-year increase of + 92%; The net profit was 137 million yuan, a year-on-year increase of + 72%. The performance of 22q1 reached a new high, with a revenue of 428 million yuan, a year-on-year increase of + 127.1%; The net profit was 142 million yuan, a year-on-year increase of + 90%.
The profit margin increased and the expense rate decreased during the period: the overall gross profit margin of the company in 2021 was 46.7%, an increase of 1.7 percentage points year-on-year; The net interest rate was 35.2%, up 1.9 percentage points year-on-year. The scale benefit appears, and the cost rate decreases during the period; The sales expense rate was 0.4%, a year-on-year decrease of 0.2 percentage points, and the management expense rate was 3.1%, a year-on-year decrease of 1.3 percentage points. The financial expenses were – 10.51 million yuan, a year-on-year decrease of 81%, mainly due to the increase of the company’s funds raised from convertible bonds and interest income. The R & D investment was 43.42 million yuan, an increase of 82% year-on-year, which was due to the company’s increased R & D investment.
The 400mn die forging hydraulic press of the company is a large-scale die forging hydraulic press independently developed and developed in China with core technology. At present, it is also the largest single cylinder precision die forging hydraulic press in the world. It solves the manufacturing problem of new models of super large-size, high-strength and high-precision forgings in China, and the overall performance of the equipment has reached the world advanced level. With the help of large-scale hydraulic equipment such as 400mn, the company participated in the whole pre research stage of large-scale transport equipment. In the future, with the mass production of new generation equipment in the main engine factory, the scale and performance of the company will show a trend of continuous growth.
Fund raising projects extend the industrial chain, expand production capacity and increase market share: the construction of advanced aviation parts intelligent interconnection manufacturing base of the company’s convertible bond fund-raising project in 2021 was promoted in an orderly manner; The project will build the digital intelligent manufacturing production line of aviation precision parts and the intelligent manufacturing production line of aircraft skin mirror milling. With the goal of extending the forging industry chain and expanding the precision processing business of aviation parts, the project will continuously improve the strength of NC processing equipment and the intelligent level and production efficiency of parts processing. In 2022, the company plans to raise additional funds to carry out the deepening and upgrading project of Aviation Precision Die Forgings, the precision forging project of Aeroengine Blades, the intelligent manufacturing project of aerospace rocket body structure and the construction of aviation digital integration center, so as to further expand production capacity and enhance market share.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 6.2/8.5/1.07 billion respectively, and the current share price corresponding to PE is 28 / 20 / 16 times, which is covered for the first time and rated as “overweight”.
Risk tip: the risk of repeated impact of the epidemic on the macro economy; The risk of sharp fluctuations in the price of raw materials; The risk of military order demand fluctuation.
