AVIC Hi-Tech (600862): Performance growth and growth in 2019 optimistic about the company’s composite materials business continues to develop

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AVIC Hi-Tech (600862): Performance growth and growth in 2019 optimistic about the company’s composite materials business continues to develop

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AVIC Hi-Tech (600862): Performance growth and growth in 2019 optimistic about the company’s composite materials business continues to develop

Event: The company announced the 2019 annual performance forecast, and the internal net profit attributable to the mother in 2019 will be about 5.

50 ppm, an increase of 80 in ten years.

8%; the net profit of alternative non-recurring gains and losses attributable to shareholders of the listed company is approximately 2.

3.5 billion, down 13% a year.

Comments: 1.

The company’s annual net profit attributable to mothers in 2019 has increased year by year. It is optimistic that the company focuses on its main business, improves quality and efficiency, and the composite materials business continues to develop for a long time.

(1) The report initially achieved a net profit of approximately 5.

50 ppm, an increase of 80 in ten years.

8%, mainly driven by the following factors: ① The report increased, the new materials business income showed a steady growth trend, and the net profit was about 2.

880,000 yuan, an annual increase of about 78 million yuan, an annual increase of 37.

14%; ② The number of reports, the machine tool business actively explored the market, strengthened control over costs, and reduced losses by 0 in one year.

11 trillion; ③ the scale of real estate business income has narrowed, withdrawing completed at the end of 2019, and the consolidated net profit decreased by about 1.

260,000 yuan, but the actual net profit of Zhihao Real Estate’s distribution and transfer of consolidated caliber 南京龙凤网 is about 2.

5 ppm, that is, the actual net contribution of the real estate business as a whole increased by approximately 1.

24 ppm; ④ The investment income of the companies participating in the headquarters increased by approximately 0.

17 trillion; ⑤ The number of reports, the consolidated value-added assessment and amortization decreased by about 0.

1.2 billion.

(2) The non-recurring profit or loss attributable to shareholders of the listed company is approximately 2.

35 ppm, a year-on-year decrease of 13%, mainly due to the decline in land operations.

(3) According to the announcement of the company, the current aviation industry group has absorbed the former controlling shareholder of the merged company AVIC Hi-Tech Development Co., Ltd., so that the company becomes a second-level subsidiary of the aviation industry group, the merger level is reduced, and the company’s management efficiency is gradually improved.

In fact, Aviation Industry Group is working hard to promote the strategic integration of professional integration. After directly holding the equity of AVIC Hi-Tech, it will also help promote internal resource integration, promote the development of related industries, and provide stronger support for the company.

We are optimistic that the company’s composite materials business will continue to develop for a long time under the background of high downstream demand boom, focus on the main business, and improvement of quality and efficiency.

2.

The real estate business has exited, focusing on new aviation materials and the development of special equipment.

The company’s main business is new aviation materials business, the main equipment business and actual business of machine tools, covering new aviation materials, high-end intelligent equipment, rail transportation, automobiles, medical equipment, equipment manufacturing, real estate and other fields.

In December 2019, in order to supplement the annual commitment to withdraw from the real estate business in an orderly manner within five years of the major asset reorganization in 2015, the company issued an announcement that it has transferred 100% equity of Jiangsu Zhihao, a subsidiary held by Beijing Stock Exchange, to the transferee.For Nantong Industry Holding Group Co., Ltd.

With the orderly withdrawal of the company’s real estate-related business, the company will form a business layout with the main industries of new aviation materials and high-end intelligent equipment manufacturing, and the rapid development of the new aviation materials business will be highlighted.

3.

Core aviation composite materials companies are expected to benefit from accelerated equipment replacement.

The company’s subsidiary aviation industry composite materials is a professional high-tech enterprise integrating research and development, production, sales and service of composite materials. According to the company’s announcement, its main customers are aviation industry OEMs and parts production units.

The company’s composite material technology and industrial scale are at the leading domestic level. The composite material design technology and engineering capabilities are internally competitive. In terms of high-performance resin and prepreg technology, resin-based composite material manufacturing technology, and advanced non-destructive testing technology, etc.In the domestic advantage area.

As the core company of aviation composite materials, the company is expected to benefit from the subsequent continuous replacement, and the composite materials business is committed to maintaining rapid growth.

4.

Actively lay out the market for civilian composite materials, with ample room for growth.

The company is currently actively promoting the application and industrialization of aviation composite materials technology in the fields of civil aircraft, automobiles, rail transportation and new energy, and actively exploring the civil aviation market.

According to the company’s announcement, China ‘s civil aircraft industry is currently in a leapfrog development stage. The domestic large-scale passenger aircraft C919 successfully flew for the first time and entered the experimental stage. The Sino-Russian joint development of the wide-body passenger aircraft CR929 also entered the preliminary design stage, and its composite materials accounted for more than 50%.
In the future, various civil aircraft models will enter the batch production stage, and the demand for composite material components will be strong. The replacement of raw materials such as aviation prepregs and honeycomb core materials will also increase. The domestic civil aviation composite materials industry is expected to become a future developmentAttractions.

At the same time, composite applications for automobiles, rail transit, and ships have entered a stage of rapid development, and the civilian market for composite materials has broad development space. 5,

Earnings forecast and rating: Considering that the company is expected to continue to benefit from the advantages of card slots and refurbishment construction, and the civil composite materials market has ample space, we give the company a “recommended” rating. Our 2019/2020/2021 EPS forecasts are 0.

39/0.

32/0.

42 yuan, corresponding to 28/34/26 times the PE in 2019/20/21.

Risk Warning: Military product orders fail to meet expectations; civilian product market development fails to meet expectations; major development projects fail to meet expectations