\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 760 Avic Shenyang Aircraft Company Limited(600760) )
Key investment points
In the first quarter of 2022, the revenue increased by 35% year-on-year, and the net profit deducted from non parent company increased by 61% year-on-year
1) in the first quarter of 2022, the revenue was 7.8 billion, with a year-on-year increase of 35%, the net profit attributable to the parent was 510 million, with a year-on-year increase of 48%, and the net profit not attributable to the parent was 470 million, with a year-on-year increase of 61%.
2) profitability: the gross profit margin in the first quarter of 2022 was 9.6%, a year-on-year decrease of 0.3pct; The net interest rate was 6.6%, up 0.6pct year-on-year. The slight decrease of gross profit margin and the increase of net profit margin are mainly due to the decrease of R & D expense rate, the increase of financial income and the decrease of credit impairment loss.
3) period expense rate: the sales expense rate and management expense rate are basically the same year on year; The R & D expense ratio was 0.67%, with a year-on-year decrease of 0.48pct; The financial expense ratio was – 0.69%, which further increased the financial income compared with – 0.4% last year.
The financial budget predicts high growth in 2022: net profit increased by 25% year-on-year
In 2022, the company plans to achieve an operating revenue of 40.7 billion, an increase of 19% compared with the actual completion in 2021; It is planned to realize a net profit of 2.1 billion, an increase of 25% compared with the actual completion in 2021. The company has exceeded its business objectives since 2018 and is expected to exceed its business objectives in 2022.
Acquisition of Jilin airlines to further improve the aviation defense equipment industry chain
1) the company announced that it plans to acquire 77.35% of the equity of Jilin Airlines by means of cash acquisition and cash capital increase, become its controlling shareholder, and include Jilin airlines into the scope of consolidated statement.
2) Kyrgyzstan Airlines is mainly engaged in aviation defense equipment maintenance business, with an operating revenue of 690 million and a net profit of 16.72 million in 2021. At the end of the first quarter of 2022, the total assets were 1.3 billion and the net assets were 75.72 million.
3) in the medium and long term, the acquisition of JIhang will help the company speed up the construction of batch repair capacity, strengthen the main maintenance industry and complete the vertical extension of the industrial chain. So as to prepare for the rapid improvement of maintenance demand after the increase of the number of advanced military aircraft in the future. In the future, the maintenance business is expected to become another important driving force for the sustainable growth of the company.
China’s military aircraft industry has ushered in a golden period of development, and many factors have boosted the company’s performance
1) “there has been no major change in a century”, the military aircraft industry has ushered in a golden period of development. Many products of the company occupy an important position in the equipment system of China’s air force and navy. Uighur Eagle stealth fighter equipment has broad foreign trade potential.
2) the company is the first national defense host to carry out equity incentive. Subsequently, under the catalysis of “scale effect / small core and large cooperation / pricing reform / large order + large prepayment”, the operating efficiency is expected to continue to improve.
Avic Shenyang Aircraft Company Limited(600760) : the compound growth rate of performance in the next three years is expected to exceed 30%
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.21/28.9/3.84 billion yuan, with a year-on-year increase of 30% / 31% / 33%, EPS of 1.13/1.47/1.96 yuan and PE of 44 / 34 / 25 times. Consider the uncertainty of future performance release and continue to recommend.
Risk tips: 1) the delivery confirmation of military products is less than expected; 2) The development progress of key models is less than expected.
