2022-05-06 Tianfeng Securities Co., Ltd. Li Lujing and Liu Mingyang conducted research on AVIC Heavy Machinery and released a research report "2022Q1 Net Profit attributable to the Parent +174.95%, Profitability Continues to Improve". This report gives a buyout of AVIC Heavy Machinery into the rating, the current stock price is 38.03 yuan.
AVIC Heavy Machinery (600765)
2022Q1 net profit attributable to parent companies +174.95%, profitability continues to improve
The company achieved operating income of 2.065 billion yuan in Q1 of 2022, +15.65% year-on-year. Operating income achieved sustained and stable growth, mainly due to the increase in market orders. The company's delivery capabilities have improved. The net profit attributable to the parent company was 208 million yuan, +174.95% year-on-year, achieving higher-than-expected growth. The main reason was that the increase in cost expenses was smaller than the increase in operating income, and the profit margin was improved. Achieved non-net profit of RMB 206 million, +185.53% year-on-year.
In Q1 of 2022, the company achieved a sales gross profit margin of 28.55%, +4.14pcts year-on-year; in terms of period expenses, the company incurred sales expenses (17 million yuan, -21.52%), administrative expenses (147 million yuan, +6.04%), and financial expenses during the period (RMB 07 million, -71.87%), R&D expenses (RMB 57 million, +10.39%). During the period, the company’s period expense ratio was 11.04%, -2.27pcts year-on-year, a record low. The company has achieved remarkable results in improving quality and efficiency. Affected by this, the net sales profit margin reached 10.95%, +5.15pcts year-on-year, and the company's profitability significantly improved. We believe that the company is expected to see an increase in production capacity utilization brought about by product structure optimization (small batches and multiple varieties affect production capacity deployment), and at the same time, the marginal cost will decrease due to the scale effect after the new product ramps up (including the reduction in fixed cost sharing and factors). (Reduction in variable costs brought about by manufacturing upgrades), profitability may enter a track of continuous improvement in the future based on increased volume.
Contract liabilities increased by 1579.17% over the same period, and product delivery may be accelerated.
The company's prepayments at the end of the period reached 388 million yuan, +29.14% from the end of the previous period, an increase of 53.25% from the same period last year; contract liabilities reached 593 million yuan, an increase from the same period last year. 1579.17%, indicating that the company has sufficient orders on hand, the industrial chain boom continues to strengthen, product delivery speed may continue to increase, and profitability is expected to enter a continuous upward trajectory.
invests in Anji Precision Casting to accelerate the industrial layout of the forging and casting industry.
announced on March 14 that it plans to increase its investment in the joint-stock company Aviation Industry Anji through public delisting from the Beijing Equity Exchange, and will increase its capital investment in Aviation Industry Anji by 50 million yuan in cash. We believe that this capital increase will help accelerate the company's industrial layout in the forging and casting industry, improve the core competitiveness of the overall forging and casting business, and become an overall solution service provider for high-end forging, casting, and additive manufacturing. At the same time, it can help Anji Precision Casting improve the manufacturing process level and production capacity of key core products, strengthen the main precision casting business, improve the shareholder structure, optimize the allocation of resource factors, and improve operational stability and risk resistance.
's new production capacity is about to be released, and the expansion demand for aircraft aerospace engine forgings drives the high growth of construction period performance.
, as a leading enterprise in aviation forging, produces aircraft fuselage and wing structural forgings, aerospace engine disc shafts and ring forgings, aerospace engine ring forgings, Small and medium-sized forgings may fully benefit from the expanding demand for forgings. In order to meet the dual-driven high-business cycle of the replacement of military aircraft weapons and equipment and the development of domestic civil aircraft, the company raised 1.327 billion yuan and 1.91 billion yuan in funds in 2018 and 2021 respectively, for advanced forging, civil aviation ring forgings, and key hydraulic foundations. parts supporting, high-efficiency heat exchanger, aviation precision die forging and isothermal forging production line projects to improve the company's aviation precision die forging parts development and production supporting capabilities, realize the company's industrial transformation and upgrading, and meet the needs of domestic military aircraft, commercial aircraft and international commercial aircraft large Market demand for precision die forgings. As the company's investment projects are gradually completed and reached production from 2022 to 2025, the company's production capacity will be improved, further consolidating and strengthening the company's industry leading position in the forging field.
Profit Forecast and Rating: We believe that the company's core business will benefit from the upgrading of our military's aviation equipment and is expected to continue to grow rapidly in the next three years; at the same time, with the gradual implementation of my country's large aircraft projects, the company's civil aircraft forging and casting products are expected to achieve a leap forward Volume growth.To sum up, we estimate that the company's net profit attributable to the parent company in 2022-2024 will be 13.09/18.97/2.587 billion yuan respectively, and the corresponding P/E will be 28.89/19.94/14.62x. Maintain a "buy" rating.
Risk Warning: The risk of military product business fluctuations; the risk of raw material supply; the risk of investment project progress and income not meeting expectations, etc.
Securities Star Data Center calculates based on the research report data released in the past three years. The research team of China Merchants Securities Wang Chao has conducted more in-depth research on this stock. The average forecast accuracy in the past three years is 77.25%. It predicts that the attributable net profit in 2022 will be profitable. 547 million, and the predicted PE based on current price conversion is 65.57. The latest profit forecast details of
are as follows:
A total of 18 institutions have rated the stock in the past 90 days, 12 have buy ratings, and 6 have overweight ratings; the average target price of institutions in the past 90 days is 52.05. The Securities Star valuation analysis tool shows that AVIC Heavy Machinery (600765) has a good company rating of 3 stars, a good price rating of 2 stars, and a comprehensive valuation rating of 2.5 stars. (Rating range: 1 ~ 5 stars, the highest is 5 stars)
The above content is compiled by Securities Star based on public information. If you have any questions, please contact us.
