\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 760 Avic Shenyang Aircraft Company Limited(600760) )
Event: the company issued 2022q1 performance report. In 2022q1, the company achieved a revenue of 7.803 billion yuan, a year-on-year increase of 34.78; The net profit attributable to the parent company was 511 million yuan, a year-on-year increase of 48.18%; The non net profit deducted was 465 million yuan, a year-on-year increase of 60.91%.
2022q1 achieved substantial growth in performance. In 2022q1, the company achieved a revenue of 7.803 billion yuan, a year-on-year increase of 34.78%, mainly due to the increase in sales of products, with a month on month decrease of – 14.92%; The net profit attributable to the parent company was 511 million yuan, an increase of 48.18% year-on-year and 111.67% month on month; The non net profit deducted was 465 million yuan, a year-on-year increase of 60.91% and a month on month increase of 111.56%. The gross profit margin of 2022q1 was 9.64%, with a year-on-year increase of -0.31pct. The company’s production capacity was released and its performance in the first quarter exceeded expectations.
During the period of the company, the expense rate decreased year-on-year and the profitability was stable. On the expense side, the sales expense of 2022q1 company was 02 million yuan, a year-on-year decrease of 42.18%; The management fee was 143 million yuan, a year-on-year increase of 27.47%; The R & D cost was 52 million yuan, a year-on-year decrease of 21.90%; Financial expenses were – 54 million yuan, a decrease of 31 million yuan over the same period of last year, mainly due to the increase of interest income; The expense rate during the period was 1.84%, compared with -0.92pct in the same period of the previous year. The gross profit margin of 2022q1 company was 9.64%, with a year-on-year increase of -0.31pct; The net interest rate was 6.55%, a year-on-year increase of + 0.59pct. With the company’s large-scale products and the cost reduction under the superposition of scale effect, the company’s profitability is expected to improve.
The boom continued. The contract liabilities of 2022q1 company were 30.452 billion yuan, a year-on-year increase of 800.48%, and the contract orders increased significantly compared with the same period last year. In 2022q1, the company’s prepayment was 21.458 billion yuan, a year-on-year increase of 402060%; The company’s inventory was 8.068 billion yuan, a year-on-year increase of 23.27%. The company has sufficient orders, strong demand, increased production tasks, increased procurement and improved prosperity, which has been further verified.
Investment suggestion: the industry has entered the accelerated period of military aircraft replacement, with strong downstream demand. As a fighter aircraft main engine factory, the company is scarce, and the number of contract orders has increased significantly. It is optimistic about the development of the company during the 14th Five Year Plan period. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.213 billion yuan, 3.040 billion yuan and 3.913 billion yuan respectively, and the PE will be 44 times, 32 times and 25 times, maintaining the rating of “prudent recommendation”.
Risk warning: the risk of business income decline due to the lower than expected R & D of new products; The risk of cost increase caused by the sharp rise in the price of upstream raw materials; Risk of cost increase caused by sharp increase in expenses during the period.
