AVIC Mechanical & Electrical (002013): Focus on the improvement of aviation’s main business profitability

AVIC Mechanical & Electrical (002013): Focus on the improvement of aviation’s main business profitability

I. Overview of the event On August 25, the company released its semi-annual report for 2019 and achieved an operating income of 53.

3.9 billion, a decline of 2 every year.

02%; net profit attributable to mother 3.

25 ppm, an increase of 12 per year.

39%.

Second, the analysis and judgment focus on the main business, the performance of stable growth in the first half of 2019, the company achieved operating income53.

3.9 billion, a decline of 2 every year.

02%; net profit attributable to mother 3.

25 ppm, an increase of 12 per year.

39%, profitability has further improved.

In the first half of the year, the period fee was 15.

98%, a slight increase of 0 compared with the same period last year.

95pct, primarily for the company’s financial expenses and R & D investment increase.

The company achieved a gross profit margin of 22.

99%, the gross profit level of the same period of each year remains stable.

Report intelligence, aviation product revenue 35.

30 ppm, an increase of 9 in ten years.

68%; revenue from non-aeronautical products 17.

64 ppm, a decrease of 16 per year.

91%.

In terms of revenue, aviation products accounted for an increase of 7 over the same period last year.

06pct, the proportion of non-aeronautical products decreased by 5.

92pct, reflecting the company’s further focus on aviation.

The procurement of military aircraft resumed to promote the growth of supporting mechanical and electrical equipment. The aviation industry will continue to develop. The World Air Force 2019 report shows that there are 3187 military aircraft in service and 13,398 in the United States, of which only 23 are in the United States.

79%, the increase in the number of fighters in the future will drive the demand for transmission systems.

The existing aerospace electromechanical systems have generation gaps. In order to meet the technical needs of the fourth generation aircraft, the state’s R & D promotion and policy support for 深圳桑拿网 electromechanical systems are expected to increase.

Benefiting from the increase in the number of military aircraft in the future and the upgrading of mechanical and electrical systems, the company’s main aviation industry strives to maintain stable growth.

The Nanjing Center is divided into custodian scopes, and the Asset Continuity and Sustainable Company is the listing platform for AVIC-related aviation electromechanical systems.

In 2014, AVIC entrusted AVIC Mechanical and Electrical to manage the equity of 18 enterprises.

Among them, the acquisition of Fenglei and Fengyang has been completed by the end of 2016.

In 2017, the company issued convertible bonds to acquire Singapore Airlines Group and Yibin Sanjiang Machinery, which have been consolidated in 2018.

At the end of 2018, the company adjusted the 北京夜网 scope of hosting, reduced 7 hosting companies, and increased 1 Nanjing Center.

Immediately after the adjustment, the average custodian scopes of the 609 and 610 affiliated research institutes within the mechatronic system will be gradually transformed into institutional reforms, and asset consolidation will continue in the future.

Third, profit forecasting and investment advice The company is a leader in aviation machinery and electronics, and the platform is subdivided. We are optimistic about the company’s long-term development.

Expected company 2019?
In 2021, the EPS will be 0.

26, 0.

29 and 0.
35 yuan, corresponding to PE 25X, 22X and 19X, comparable company PE35X 19 years, give “recommended” rating.
4. Risk warnings: 1. The military aircraft installation fails to meet expectations; 2. The institutional reform does not meet expectations