AVIC Aircraft (000768): Continuous improvement in management performance helps performance growth
The leading company in the aviation manufacturing industry, the rarity target of military large and medium-sized aircraft, maintains a “buy” rating until the company achieves operating income of 196 in the first three quarters of 2019.
78 ‰, a decrease of 3 per year.
57%; net profit attributable to mother 3.
430,000 yuan, an increase of 47 in ten years.
61%, performance is in line with expectations.
The company has the core resources of domestic large and medium-sized military and civilian aircraft, a full range of aircraft landing gear and wheel braking systems, and is the backbone of the domestic aviation industry.
We expect the company’s EPS for 2019-2021 to be 0.
29 and 0.
33 yuan, the future growth space bears and is expected to benefit from reforms, maintain a “buy” rating.
The management efficiency has been improved, and the cost performance during the period has been good. In the first three quarters of 2019, the company achieved gross profit12.
38 ppm, a 10-year increase2.
08%, an increase of 25.27 million yuan; taxes and additional 28.59 million yuan, a decrease of 50.
23%, a decrease of 28.85 million yuan; the total cost during the period was 8.
51 ppm, a reduction of 10 per year.
22%, a decrease of 96.86 million yuan; asset disposal income of 24.25 million yuan, an increase of 582.
27%, an increase of 20.7 million yuan.
The company is vigorously pushing forward the lean reform of production units, and has issued a road map for the construction of lean factories covering all elements 杭州桑拿网 of management. The management efficiency has been steadily improved, and the decline in expenses during the period has a positive impact on the company’s performance.
A leading company in domestic large and medium-sized military aircraft. The main products are accelerated to assist the national defense construction company. The major products currently delivered are large strategic transport aircraft 20, medium-sized tactical transport aircraft 8/9, and 8/9 special operations modified aircraft (electronic warfare,Psychological warfare, anti-submarine and other purposes) and medium and long-range bomber bomber 6 series.
All the above-mentioned main battle equipments were unveiled at the 70th National Day military parade of the founding of the revolution, and they respectively served as the main force of the transport 杭州夜网论坛 fleet, maritime patrol fleet and bomber fleet.
Under advanced war conditions, sea-to-air operations are related to the ultimate victory. In the current geosecurity environment, the pressure on sea-to-air operations is increasing.
We expect that the future national defense budget expenditure will focus on the field of air and sea equipment. The company’s related products have placed short boards for our military’s equipment system in their respective fields. From the perspective of the National Day military parade, we are accelerating the deployment and helping to promote modern defense construction.
The switchboard unit is expected to benefit from the reform of military pricing. The civil aviation market has a broad space. The company is one of AVIC’s core switchboard units. In the future, it is expected to benefit from the reform of the military pricing mechanism and achieve a significant improvement in asset profitability.
The civil aviation manufacturing industry represented by C919, AG600, ARJ21, etc. is currently being promoted.
As the backbone of the domestic aviation industry, the company is a supporting manufacturer of related micro-core structural components.
Currently, the ARJ21 has been commercialized and started mass production. The fifth C919 aircraft has been put into test flight and is accelerating the progress of C919 certification.
The domestic market for civil aviation manufacturing has great potential, which brings broad growth space for the company.
Leading military transport aircraft and bombers. The military and civilian market has a bright future. We give the rating of “Buy” and we maintain our profit forecast for the company. It is estimated that the company’s operating income for 2019-2021 will be 355.
05 billion, 376.
6.4 billion and 398.
4.6 billion, net profit attributable to mothers was 6.
7.8 billion, 7.
89 ppm and 9.
00 ppm, corresponding EPS is 0.
29 and 0.
We are optimistic that the company’s industrial prospects are outstanding and the future growth space is broad. Based on the historical average market sales rate (excluding the extreme value in the 2015 bull market), the company is given January 2019.7-1.
8 times the estimated P / S ratio, corresponding to 21.
05 yuan / share, continue to give a “buy” rating.
Risk reminder: National military expenditures fall short of expectations, new products are not delivered as expected, and the progress of military pricing reform is not up to expectations.