\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 38 Aecc Aero-Engine Control Co.Ltd(000738) )
Event: the company released the first quarterly report of 2022 on April 26. In Q1 of 2022, the company realized an operating revenue of 1.21 billion yuan, a year-on-year increase of 31.33%, a net profit attributable to the parent company of 214 million yuan, a year-on-year increase of 59.99%, and a net profit deducted from non attributable to the parent company of 213 million yuan, a year-on-year increase of 66.07%.
High performance growth exceeded expectations, and the scale effect continued to highlight. On the revenue side, the operating revenue of 2022q1 reached 1.21 billion yuan, with a year-on-year increase of 31.33% and a month on month increase of 8.20%. The large volume of advanced military aircraft led to the release of the demand for aeroengines, and the company’s revenue increased rapidly. On the profit side, the company realized a net profit attributable to the parent company of RMB 214 million in 2022q1, with a year-on-year increase of 59.99% and a month on month increase of 137.22%. The net profit deducted from non attributable to the parent company was RMB 213 million, with a year-on-year increase of 66.07% and a month on month increase of 149.69%. The scale effect of the company was prominent, and the profit growth significantly exceeded the revenue growth. In terms of profit margin, the gross profit margin of 2022q1 company was 34.66%, a slight decrease of 0.34pct year-on-year, but increased by 6.42pct compared with last year, and the net profit margin was 17.66%, a year-on-year increase of 3.16pct and 5.93pct compared with last year. The sharp increase in net profit margin indicates that the company’s products are mature and the scale effect is accelerating.
The level of expense rate is well controlled and the operating condition continues to improve. The company’s 2022q1 three expenses accounted for 9.46%, a year-on-year decrease of 0.69pct, of which the sales expense rate was 1.34% (year-on-year + 0.52pct), the management expense rate was 8.36% (year-on-year -0.99pct), and the financial expense rate was -0.24% (year-on-year -0.22pct). The company’s expense rate level is well controlled and its operating condition continues to improve. The company’s R & D expense in 2022q1 was 40 million yuan, a year-on-year decrease of 32.28%, and the R & D expense rate was 3.27%, a year-on-year decrease of 3.07pct, mainly due to the reduction of R & D project settlement.
The orders in hand are full, the product delivery is smooth, and the payment collection is in good condition. At the end of the first quarter of 2022, the company’s contract liabilities were 834 million yuan, with a significant year-on-year increase of 948.08%, indicating that the company has full orders on hand. In terms of accounts receivable, the end of 2022q1 of the company was 1.83 billion yuan, with a year-on-year increase of 17.51%, lower than the growth rate of the company’s revenue, indicating that the company’s collection is good. The company’s inventory at the end of the first quarter of 2022 was 1.104 billion yuan, with a year-on-year increase of 14.28%. The growth rate of inventory is also lower than that of the company’s revenue, indicating that the company’s product delivery is smooth.
Aecc Aero-Engine Control Co.Ltd(000738) system has a solid leading position and actively expands non aviation business. The company is a national designated core enterprise in the development and production of aeroengine control system. It participates in the development and production of all models under research and in service in China, and is in a monopoly position in the key subsystems of the control system, such as mechanical and hydraulic actuators such as fuel control. In the field of civil aero-engine, the company is the only listed company in the research of domestic aero-engine control system of Changjiang series. The company has a solid leading position in military and civil aviation, and is expected to fully benefit from the large volume of military aircraft and the delivery of civil aircraft. In addition, relying on its strong technical strength, the company has actively expanded into the field of non aviation civil products, mainly focusing on the fields of ground military equipment, military vehicle power fuel control system, etc. one of the fixed increase projects at the end of 2021 is “aero engine control technology derivative Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) production capacity construction project”, which will establish relatively independent production lines of different types of derivative products, which is expected to further expand the production capacity in the field of non aviation, Bring new growth points to the company.
Investment suggestion: we maintain the company’s profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 5.556 billion yuan, 7.119 billion yuan and 8.809 billion yuan respectively, the net profit attributable to the parent company will be 700 million yuan, 957 million yuan and 1.240 billion yuan respectively, the corresponding EPS will be 0.53 yuan, 0.73 yuan and 0.94 yuan respectively, and the corresponding PE will be 37.3x, 27.3x and 21.0x respectively. The company is a leading enterprise engaged in the research and production of aeroengine control system in China. With high technical barriers and great difficulty in research, development and production, the company maintains the “buy” rating.
Risk prompt event: military orders are less than expected; Product delivery is not as expected; The profit forecast is lower than expected.
