AVIC Hi-Tech (600862): New Materials Business Maintains High Growth, Focusing on Main Business to Improve Management Efficiency

AVIC Hi-Tech (600862): New Materials Business Maintains High Growth, Focusing on Main Business to Improve Management Efficiency

Event: The company issued a performance forecast. It is estimated that the net profit attributable to shareholders of listed companies will be about 549.73 million yuan in 2019, an increase of about 80 every year.

8%.

Comments: 1. The trend of new materials and machine tools business is improving, driving 19-year performance improvement.

In 2019, the company realized a net profit attributable to shareholders of listed companies of approximately 549.73 million yuan, an annual increase of 245.67 million yuan, an increase of approximately 80.

8%, of which Zhihao Real Estate’s actual net profit of the merger and transfer of consolidated caliber was about 250 million yuan; non-net profit after deduction was about 234.5 million yuan, a decrease of 36.14 million yuan and a decrease of 13%, of which the aviation new materials business profit increased by 78 million yuan, Machine tool business reduced losses of 11 million yuan, real estate consolidated profit decreased by 1.

2.6 billion.

2. The new materials business maintained high growth, with profits growing 37 per year.

14%.

.
In 2018, the company’s aviation new materials business achieved sales revenue15.

800 million, with a net profit of 20,999.

680,000 yuan, the performance forecast for 2019, the new materials business revenue will grow steadily, and the increase in net profit will increase by about 78 million yuan, reaching about 2.

880,000 yuan, an increase of 37 years ago.

14%.

The highest domestic equipment 无锡桑拿网 procurement costs have maintained steady growth for a long time, and the demand for composite materials for aviation equipment has continued to increase. The company’s main customers for composite materials are aviation industry OEMs and component production units, benefiting from the increase in the number of aviation equipment deliveries and the availability of composite materials.Increase in share in structure.

3. Transfer of Jiangsu Zhihao and exit the real estate business.

The company issued an announcement on December 25 to 10.

05 million US dollars transferred the entire equity of Jiangsu Zhihao, and completed the industrial and commercial changes on December 27. Withdrawing from the actual business is conducive to further focusing on new aviation materials and the development of the main aviation special equipment industry.

4. Shareholder mergers and mergers to further expand the management chain.

On December 27, 2019, the company issued an announcement that Aviation Industry Group merged with AVIC Hi-Tech Development Co., Ltd. After completion, Aviation Industry Group Co., Ltd., as the survivor, became the direct controlling shareholder of the listed company and directly held the company.

86% of the shares.

As a pilot project of a state-owned capital investment company, Aviation Industry Group has continued to make breakthroughs in the direction of equity incentives. Recently, a number of listed companies in the group, such as AVIC, and AVIC Heavy Machinery have issued equity incentive plans.

Aviation Industry Group absorbed the merger of AVIC Hi-Tech, shortened the management chain, improved the decision-making process and efficiency, and the company is expected to benefit from the pilot policy bonus of the internal capital investment company.

5. Performance forecast We predict that the company’s net profit attributable to the mother in 2019-2021 will be 5.

50, 3.

87, 5.

6.2 billion, corresponding to PE is 27, 38, 26 times, maintaining the “strongly recommended” level.

Risk warning: The machine tool business continues to grow, and the demand for new materials business decreases.