AVIC Shen Fei (600760) Quarterly Report Comment: High Performance Growth of Inventory and Accounts Received a Significant Growth
The company’s products are delivered in a balanced manner and its sales volume has increased. The performance has increased significantly. The company released its third quarter report and achieved revenue of 158 in the first three quarters of 2019.
900,000 yuan (ten years +37.
07%), achieving net profit attributable to mother 6.
200,000 yuan (ten years +98.
37%), the company’s revenue grew faster, and net profit attributable to mothers increased, mainly due to balanced product delivery and increased sales.
The profitability of the main business has been enhanced. During the first three quarters of the period when effective cost control was effective, the company’s overall gross profit margin was 8.
81%, increase by 1 every year.
05pct, net interest rate is 3.
92%, increase by 1 every year.
Period costs increase by 29 per year.
50%, far lower than the growth rate of revenue, of which, management costs increased by 10% per year; 杭州桑拿网 financial expenses decreased by more than 14.75 million due to interest income; research and development expenses further increased by 89% due to research and development investment.
Inventories, advance receipts increased significantly, judgement of undelivered product replacement, new batch orders have been placed as of September 30, the company’s advance receipts of US $ 7.7 billion, an increase of over 13%, an increase of 298%, we judge theGrowth orders have been placed; inventories of 105 million US dollars, a year-on-year increase of 17% and a month-on-month increase of 18%. We judge the products to be delivered and the stocking of raw materials for new orders.
The company’s asset side is better, and revenue is expected to maintain steady growth next year.
The company’s profitability has continued to improve. It is optimistic that the development space of the main aviation industry will be reduced. With the expansion of the military pricing mechanism, the company’s profitability will continue to improve.
The company is the first core military assembly company to implement incentives, and its management efficiency promotes continuous improvement.
As an air force core equipment supplier, we are optimistic about the development space of the company’s aviation industry.
Profit forecast and investment advice The company’s performance is high growth, profitability continues to improve, Air Force equipment installation is in a boom cycle, and the company’s net profit attributable to its mother in 19-21 is estimated to be 8.
65 ppm, corresponding to 47/39/33 times the current sustainable PE.
The company is a core assembly company. The business is scarce and benefits from the boom in equipment procurement. We maintain a reasonable value40.
The view of 32 yuan per share remains unchanged, corresponding to the 19x 63xPE estimate, maintaining the company’s “Buy” rating.
Risk warning: Military procurement and delivery are uncertain; there is uncertainty in retrofitting and mass production; gross profit margin change report reports product structure, and distortions or potential phenomena occur.