\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 893 Aecc Aviation Power Co Ltd(600893) )
Event: the company issued 2022q1 performance report. In 2022q1, the company achieved a revenue of 5.4 billion yuan, a year-on-year increase of 44.30%; The net profit attributable to the parent company was 66 million yuan, a year-on-year increase of 92.51%; The non net profit deducted was 35 million yuan, a year-on-year increase of 18.54%.
2022q1 achieved substantial growth in performance. In 2022q1, the company achieved a revenue of 5.4 billion yuan, with a year-on-year increase of 44.30%. The demand of main customers and product delivery increased; The net profit attributable to the parent company was 66 million yuan, with a year-on-year increase of 92.51%, mainly due to the increase of investment income; The non net profit deducted was 35 million yuan, a year-on-year increase of 18.54%. The gross profit margin of 2022q1 company was 10.53%, with a year-on-year increase of -4.81pcts; The net interest rate was 1.57%, year-on-year + 0.34pct. The main reasons for the decline of the company’s gross profit are the expansion of business scale and the adjustment of product structure, and the increase of the proportion of new products, resulting in the increase of costs.
The operation of the company was stable, and the expense rate decreased year-on-year. On the expense side, the sales expense of 2022q1 company was 103 million yuan, a year-on-year increase of 128.23%, mainly due to the increase of after-sales support tasks and sales service fees; The management fee was 351 million yuan, a year-on-year decrease of 13.59%; The R & D cost was 68 million yuan, a year-on-year increase of 8.89%; The financial expense was RMB 02 million, with a year-on-year decrease of 88.62%, mainly due to the increase of the company’s interest income and the decrease of interest expenditure; The expense rate during the period was 9.71%, with a year-on-year increase of -4.57 PCTs.
The boom continued. The contract liabilities of 2022q1 company were 21.282 billion yuan, a year-on-year increase of 787.99%, and the contract orders increased significantly compared with the same period last year. The advance payment of 2022q1 company was 2.703 billion yuan, a year-on-year increase of 346.31%; The company’s inventory was 24.173 billion yuan, a year-on-year increase of 5.62%. The company has sufficient orders, strong demand, increased production tasks and procurement, and the overall operational indicators are improving.
Investment suggestion: the company is the only listed company of aero-engine assembly in China, which is scarce. 2022q1 company’s performance has increased significantly, the number of contract orders has increased significantly, and its operation is stable. It is optimistic about the development of the company during the 14th Five Year Plan period. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.513 billion, RMB 1.994 billion and RMB 2.700 billion respectively, and the PE will be 67 times, 51 times and 37 times, maintaining the rating of “prudent recommendation”.
Risk warning: the risk of business income decline caused by the R & D of new models not as expected; 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.
