Tongyi Aerospace (871642)
The core supplier of military aviation oxygen supply mask, the cornerstone of military industry business is stable. Since its establishment, the company has been focusing on the R & D, production and sales of military special aviation products and new material products such as polyurethane and carbon fiber. Its main products include military aviation oxygen supply mask, aircraft rubber soft oil tank, transformer oil conservator capsule (diaphragm), military and civil rubber products and polyurethane products. According to the company’s disclosure, China’s military aviation oxygen supply mask field currently mainly includes two suppliers: the company and aerospace life-saving equipment. Considering the qualification barriers in the military industry, the overall industry pattern will remain stable. The demand for oxygen supply masks for military aviation is mainly affected by the number of military aircraft. There is still a large gap in the number of Chinese military aircraft, and the industry demand is expected to continue to increase.
Polyurethane protective film advances rapidly, the military market opens up new product space, and there are few civil paint protective film manufacturers with high growth. Polyurethane protective film is a thermoplastic polyurethane elastomer (TPU) material film product, which has excellent properties such as high strength, high toughness, wear resistance, oil resistance, cold resistance, aging resistance, environmental protection, non-toxic, degradable, waterproof and moisture permeability, wind resistance, cold resistance, antibacterial and ultraviolet resistance, and has a broad market prospect. In terms of military and civil polyurethane protective films, the number of enterprises in the production of original films is relatively small due to the relatively high difficulty. The company’s early listed raised investment project, namely, the production capacity of polyurethane protective film, includes two production lines of 150000 M / month. After complete completion, the production capacity can reach 400000 M / month, which is more flexible than that. Military product polyurethane protective film has been used in helicopter blades and other fields, and may expand its application fields. Automotive paint protective film (invisible car coat) is a hot spot in the current automotive aftermarket. Especially with the increase of personalized car colors, it is favored by young car owners and new energy car owners. At present, China’s penetration rate is still low and has high growth space. Assuming that the penetration rate of automobile paint protective film reaches 10% – 20%, it is estimated that the market space may reach 1.875-3.75 billion. If the complete automobile paint protective film and automobile color modification film products are considered, the market space will be larger.
Investment suggestion: Tongyi aerospace is one of the core suppliers of oxygen supply masks for military aviation, expanding polyurethane protective film business and opening up growth space. The contribution of military business performance is stable, and the polyurethane protective film business is expected to have greater flexibility with the release of listed supporting raised investment capacity. It is estimated that the company’s revenue from 2021 to 2023 will be 122 million yuan, 169 million yuan and 205 million yuan respectively, with growth rates of 29.4%, 38.8% and 21.0% respectively, and the net profit attributable to the parent company will be 36.91 million yuan, 50.46 million yuan and 58.11 million yuan respectively. The investment rating of Buy-A is covered for the first time, and the six-month target price is 22.5 yuan.
Risk tip: the release of project capacity is less than expected, the rhythm of military orders and the price of raw materials fluctuate sharply
