AVIC Mechanical & Electrical (002013): 18 Years of Steady Performance and Aviation Electromechanical Leader Prospects Still Expectable
Event: The company announced the 2018 annual report, and the company achieved operating income of 116 in 2018.
370,000 yuan: increase by 4 every year.
08%, realizing net profit attributable to mother 8.
37 ppm, an increase of 16 per year.
49%, the corresponding return is 0.
23 yuan, 0 cash dividends are distributed for every 10 shares.
30 yuan (including tax).
Opinion: The company is operating well, and its long-term revenue has increased slightly. Net profit has benefited from the control of asset impairment losses and increased investment income, achieving rapid growth.
(1) Reporting strength, the company realized operating income of 116.
370,000 yuan, a slight increase over the ten years4.
08%, 105 of the annual plan completed.
First and foremost is that the company, as the only electromechanical system platform in the aviation industry, further concentrates the main business of aviation products. Based on the steady growth of military aviation and defense business, it reduces the non-main business of some units.
Among them, military aviation and defense initially achieved sales revenue.
83 ppm, a ten-year increase of 8.
17%; civil aviation sales revenue3.
5 billion, down 9 a year.
66%; industrial manufacturing revenue 38.
62 trillion, a year down 0.
83%; modern service industry realized sales revenue1.
43 ppm, a decrease of 14 per year.
(2) Reporting strength, the company realized net profit attributable to mother 8.
37 ppm, an increase of 16 in ten years.
49%, higher than revenue growth.
The preliminary results are as follows: ① The company reports that the budgeted financial expenses are reduced by 20 each year.
42%, mainly due to the decline in the average interest-bearing debt scale of the company; ② Reported that major companies benefited from the recovery of annual receivables in bad debts, and their asset impairment losses were reduced to zero.
1.3 billion, a decrease of 0 a year.
3.3 billion; ③ The company reported that it had previously received 0 investment income.
47 ppm, an increase of 0 per year.
US $ 4.4 billion, mainly from investment income generated by the disposal of equity in Qing’an Group Co., Ltd., a subsidiary of the company.
(3) At the end of the reporting period, the company’s bills receivable and accounts receivable 86.
12 trillion, an increase of 19 over the same period last year.
54%, mainly due to the difference in sales receipts in this period compared with previous years.
Net cash flow from operating activities was -9.
09 million yuan, a significant decrease of 28 compared with the same period last year.
98 million U.S. dollars, basically except that the sales receivables are worse than in previous years, but also because the payment of other cash related to operating activities increased by 8 compared with the same period of the previous year.
2.5 billion.At present, the company’s military products business is stable. In the long term, the company expects to continue to benefit from the accelerated mass production of military aircraft and the expansion of the civilian market space, and its performance will continue to grow steadily.
The company is an aviation electromechanical system platform. Mass production of military aircraft has contributed to the steady increase in performance, and the market for civil aircraft has a bright future.
The company is AVIC’s aviation electromechanical system business platform. The company and its parent company AVIC Airborne Systems Co., Ltd. have nearly 100% market share in China’s aviation industry electromechanical system.
The average value of the next ten years will usher in the peak of mass production of military aircraft. With the upgrade of various Air Force aircraft models, the proportion of mechanical and electrical systems will continue to increase, which will bring continuous development to the company’s performance.
In addition, 南宁桑拿 in the field of civil aviation, Airbus predicts that from 2012 to 2031, the global market demand for new passenger and cargo aircraft will reach 28,200, of which China’s new aircraft demand is 6810.
It is expected that during the “13th Five-Year Plan” period, the company will continue to benefit from the development of large passenger aircraft (such as C919), regional aircraft and general aircraft as a leading company in the aerospace electromechanical field.
The establishment of AVIC Airborne System Company helps the development of the aviation airborne industry and consolidates and enhances the industry’s leading position.
The controlling shareholder AVIC Mechanical and Electrical Systems Co., Ltd. merged with AVIC Avionics Systems Co., Ltd. to form AVIC Airborne Systems Corporation.
The selection of AVIC Airborne System Company as a “Double Hundred Actions” 重庆耍耍网 company will not only help the company to establish an incentive and constraint mechanism with equal rights and responsibilities, and accelerate the improvement of market-oriented operating mechanisms, so that the company can better meet the requirements of market competition.Gathering the respective technical advantages of aeronautical electromechanical systems and avionics systems to achieve a strong alliance between the two parties is conducive to consolidating and upgrading the company’s leading components in the electromechanical field.
The company’s capital operation is active, and high-quality assets such as institutions are still expected to be injected.
Since the injection of 7 aviation mechanical and electrical system assets, including Qing’an and Shaanxi, since 2012, the company has actively promoted asset integration and completed the acquisition of Singapore Airlines Group and Yibin Sanjiang Machinery in 2018.
In October 2018, the company announced the adjustment of the scope of custody, reducing the custody of 7 subsidiaries including Beijing Shuguang Aviation Electric Co., Ltd. and adding a Jincheng Nanjing Electromechanical Hydraulic Engineering Research Center.
The company is the capital operation platform of the mechanical and electrical industry affiliated to AVIC. After the adjustment of the custody scope, the related institutions, the company and other high-quality assets are still undergoing subsequent injections.
The repurchase of shares shows confidence, or more core employees may participate in the shareholding.
The company announced on January 9, 2019 that it intends to repurchase 1 through centralized bidding transactions.
Employee shareholding plans or equity incentives of 500 million to 300 million (inclusive) company shares, conversion of corporate bonds issued by convertible stock issued by the company, and repurchase of not more than 9 shares.
95 yuan / share (inclusive).
At present, the actual controller of the company, AVIC Group, has been selected as a pilot enterprise of the state-owned capital investment company, and strives to obtain further authorization and decentralization from the SASAC in strategic planning, incentives and other aspects.
The IPO plan, while demonstrating the company’s confidence in future development, may use more core employees to participate in the shareholding on the basis of the core state-owned enterprise employee shareholding plan implemented by asset management in 2015.
By then, the company’s management and operating efficiency will be further improved.
Earnings forecast and rating: Benefiting from the acceleration of military aircraft installation and the booming development of the civil aviation industry, we continue to be optimistic about the company’s leading value as an AVIC asset platform of AVIC.
We predict that the company’s EPS for 2019/20/21 will be 0.
36 yuan, PE is 27/23/20 times, giving the company a “recommended” rating.
Risk reminder: military equipment is below expectations; progress in institutional reform and asset injection are below expectations.