\u3000\u30 Shenzhen Fountain Corporation(000005) 47 Addsino Co.Ltd(000547) )
Core view
Event: the company released the annual report and the first quarterly report. In the past 21 years, the revenue was 4.144 billion yuan (- 6.59%), and the net profit attributable to the parent was 644 million yuan (- 20.26%); 22q1 revenue was 1.008 billion yuan (+ 6.62%), and the net profit attributable to the parent was 144 million yuan (- 23.07%).
The revenue of defense equipment and equipment manufacturing business declined, and the information technology business achieved positive growth. In terms of business, the revenue of defense equipment in 21 years was 2.56 billion yuan (- 7.26%%), and the gross profit margin was 44.77% (+ 0.54pct); The information technology revenue is 630 million yuan (+ 19.38%), and the gross profit margin is 44.62% (-0.90pct); The equipment manufacturing revenue is 919 million yuan (- 17.90%), and the gross profit margin is – 6.54% (- 22.64pct). In terms of subsidiaries, the revenue of Nanjing Changfeng in 21 years was 1.604 billion yuan (- 20.67%), and the net profit was 169 million yuan (- 61.24%); Beijing Ruian has a revenue of 1.171 billion yuan (- 9.51%) and a net profit of 2.53 (+ 3.27%); In addition, affected by the epidemic, the construction progress of Jiangsu Dayang civilian ship business was delayed, and foreign ship owners were unable to enter the country for acceptance, resulting in the failure to deliver the ship; There are delays in the acceptance and delivery of aerospace Kaiyuan Xinchuang and other projects. Affected by the decline in revenue, the company’s comprehensive gross profit margin decreased by 3.98 PCT and the expense rate increased by 1.79 PCT during the period, resulting in the decline of net profit side exceeding that of revenue side, and the annual net profit margin decreased by 3.91 PCT to 15.77%.
At the end of the period, inventories and contract liabilities increased rapidly, and operating cash flow declined. The company’s inventory at the end of the year was 1.81 billion yuan, an increase of 50.22% year-on-year, mainly due to: 1) the increase in contract performance costs caused by the advance preparation of its subsidiaries and the failure of some tasks to reach the delivery node; 2) Jiangsu ocean was affected by the epidemic, and the ship owner’s delivery time was delayed. At the end of the year, the company’s contractual liabilities were 583 million yuan, an increase of 85.64% year-on-year, mainly due to the advance payment received for some projects of subsidiaries. The net operating cash flow of the company in 21 years was RMB – 274 million, a significant decline compared with RMB 195 million in the same period last year. It was mainly due to the impact of the epidemic and the delay of military settlement, and the decrease of payment collection year-on-year. It is expected to improve in 22 years.
The growth rate of revenue in the first quarter of 22 years turned positive, and the profit side is still under pressure. The company’s revenue in Q1 achieved positive growth in 22 years, but the profit remained negative growth because the gross profit margin decreased by 3.88pct to 40.37% compared with the same period last year.
22 years is a year of structural adjustment, industrial deepening and management improvement. As the aerospace science and industry group ” Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , the expansion platform of new fields and the organization platform of socialized resources”, the company has continued to build four industrial clusters of digital blue army, communication command and control, network security and microsystem through endogenous extension in recent years. In 22 years, the company will continue to promote capital operation and formulate the overall framework plan; Vigorously promote the disposal of “two non” assets and deepen the market-oriented transformation of company management.
Profit forecast and investment suggestions
Considering that the progress of project construction and product delivery is less than expected, the earnings per share of the company in 22 and 23 years are adjusted to 0.43 and 0.50 yuan (the previous values are 0.90 and 1.14 yuan), and the earnings per share in 24 years is increased to 0.60 yuan. According to the price earnings ratio of 27 times of the comparable company in 22 years, the target price is 11.61 yuan to maintain the buy in rating.
Risk tips
The market demand is less than expected; The progress of asset integration is less than expected
