AVIC Shen Fei (600760) 2019 Third Quarterly Report Review: Balanced production achieved significant profitability and steady improvement

Event: The company released the third quarter 杭州夜网论坛 report of 2019, reporting that the combined company realized operating income of 158.

900,000 yuan, an increase of 37 in ten years.

07%; net profit attributable to mother 6.

20 ppm, an increase of 98 in ten years.


The company’s 2019 operating goal is to achieve operating income of 220.

2.6 billion, achieving a net profit of 8.

1.2 billion.

As of the third quarter, revenue and net profit targets were respectively 72.

14% and 76.


Comment: The balanced production has significant benefits, and it is expected to achieve the goal of exceeding the target: the company achieved revenue of 158 in the first three quarters of 2019.

9 billion, an increase of 37 in ten years.


In the first three quarters, revenue was 50.

8.5 billion, 6.2 billion and 46.

0.6 billion, accounting for 四川耍耍网 23 of the long-term business goals.

09%, 28.

15% and 20.

91%, approximately equal to 8% of total revenue in the first three quarters of 2018.

7%, 22.

4% and 26.

48%, the company’s balanced production efficiency is significant, and gradually achieve the business goals expected to be exceeded.

Profitability improved significantly: the company’s comprehensive gross profit margin for the first three quarters was 8.

81%, increase by 1 every year.

05 averages.

In terms of expenses, sales expenses were 715.

870,000 yuan, an increase of 8 in ten years.

53%, selling expenses 0.

05%, reduced by 0 every year.

01 units; management costs 4.

6.5 billion, an increase of 10 in ten years.

11%, management expense ratio 2.

93%, reduced by 0 every year.

72 units; financial expenses-6108.

97 thousand, -7583 in the same period last year.

630,000; R & D expenses1.

4.7 billion, an increase of 88 in ten years.77%, R & D expense ratio is 0.

93%, increasing by 0 every year.

25 units; period expenses total 5.

5.9 billion, an annual increase of 29.

50%, period expenses3.

52%, a decline of 0 every year.

20 units.

During the period when the comprehensive gross profit rate increased, the expense ratio decreased, and the company’s net profit reached 3 in the first three quarters.

92%, increase by 1 every year.

21 single, profitability has improved significantly.

Demand for aviation’s main business remains strong, and pricing mechanism reforms are expected to unlock the company’s development potential: there will be a demand for gradual development of fighter jets in the United States and Russia, and there is a need to upgrade and replace the stock.

As a domestic fighter leader, the company is expected to fully benefit from the dividends brought by the great development of the industry.

In addition, the reform of the military product pricing mechanism is gradually being implemented, or it will continue to reshape the military product procurement system and improve procurement efficiency. As the main engine factory, the company’s right to speak on the industrial chain will continue to expand and its development potential will be released.

Profit forecast, estimation and investment grade: We maintain the company’s net profit forecast for its mothers for 2019-2021 is 8.

9.8 billion, 10.

71 ppm and 12.

810,000 yuan, the corresponding EPS is 0.

64 yuan, 0.

77 yuan and 0.

91 yuan.

The range of PE estimates from 2018 to present is 37-80 times. Taking into account the company’s aviation defense field structure and medium and long-term development prospects, we give the company 55 times PE in 2020, maintain a target price of 40 yuan, and maintain a “strong push” rating.
Risk reminder: Equipment is being installed faster than expected, and reform progress exceeds expectations.