\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 372 China Avionics Systems Co.Ltd(600372) )
Event: the company released the first quarterly report of 2022: the revenue of Q1 in 2022 was 2.346 billion yuan, an increase of + 19.60% at the same time; The net profit attributable to the parent company was 201 million yuan, an increase of + 44.37% at the same time; Deduct the net profit not attributable to the parent company of 151 million yuan, an increase of + 27.87% at the same time.
Key investment points
The net profit attributable to the parent company in Q1 increased by 44% year-on-year, and the profitability was improved. Benefiting from the increased demand during the 14th Five Year Plan period and the substantial increase in production capacity achieved by the capital increase of eight subsidiaries, the revenue in 2022q1 was 2.346 billion yuan, an increase of + 19.60% at the same time; The net profit attributable to the parent company was 201 million yuan, an increase of + 44.37%. The cost side decreased significantly, with the sales cost of 21 million yuan, a year-on-year decrease of 22.24%; The financial expenses were 38 million yuan, a year-on-year decrease of 6.42%; The profitability has been improved. The net profit margin attributable to the parent company was 8.58% in 2022q1, an increase of 0.87pct year-on-year; The gross profit margin was 27.78%, with a year-on-year increase of 6.76pct.
Inventories and contractual liabilities increased significantly, and the performance is expected to maintain high growth. During the reporting period, affected by the expansion of sales scale, the reserves of raw materials increased. The inventory of the company in 2022q1 was 6.25 billion yuan, a year-on-year increase of 19.39%, and the production scale; Contract liabilities amounted to 976 million yuan, a year-on-year increase of 354.62%; The growth of forward-looking indicators such as inventory and contract liabilities proves that the company has sufficient orders and its performance is expected to maintain high growth. With the investment of follow-up R & D funds and the accelerated promotion of the reform of state-owned enterprises, it is expected to maintain the core competitiveness and realize the sustainable and rapid development of the company.
Endogenous epitaxial two wheel drive, the company entered the golden stage of development. Internally, the company has fully benefited from the large volume of downstream military aircraft, the development of domestic civil aircraft market and the improvement of the localization rate of civil avionics system. At the same time, the company has successfully opened up non aviation defense markets such as ships, weapons, aerospace and electronics with differentiated high-end products as the starting point. In the field of non aviation civil products, the company has increased investment in intelligent systems, involving smart cities, electromechanical automation, electronic information, basic devices and other fields, and its profitability is expected to be further improved. In terms of extension, benefiting from the high prosperity of the industry during the 14th Five Year Plan period and the accelerated promotion of the reform of state-owned enterprises, as the professional integration and industrialized development platform of avionics system under the aviation industry group, the smooth progress of the custody business of avionics sector also makes the company have capital operation space and is expected to accelerate into the golden development stage.
Profit forecast and investment rating: Based on the continued high popularity of the aerospace industry and the company's market position as the core supplier of avionics system, it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.035/1.295/1.583 billion yuan respectively, corresponding to EPS of 0.54 yuan, 0.67 yuan and 0.82 yuan respectively, and corresponding PE of 32 / 25 / 21 times respectively, maintaining the "buy" rating.
Risk tips: 1) risk of military order fluctuation; 2) New product R & D and market development are not as expected; 3) Systemic risk.
