AVIC Aircraft (000768) 2019 Third Quarterly Report Review: Product structure optimization management continues to improve
Introduction to this report: The company’s third quarterly report is in line with expectations.
The product structure is optimized to increase gross profit margin, the replacement of civil aircraft business has led to a decline in the comprehensive expense ratio, and the dual enhancement of management and efficiency has brought net profit to the mother and has continued to grow.
Investment points: Investment advice: Lean factory construction will continue to optimize the product supply structure. Internal tapping will increase management efficiency. Maintain target price to 20.
57 yuan, maintaining the “overweight” level.
With the full implementation of the lean unit, the company ‘s high-margin products have gradually increased production capacity, which has led to increased sales revenue and profit margins, improved management efficiency and reduced the proportion of operating expenses.
Maintain 2019-2021 EPS forecast to 0.
37 yuan unchanged.
Performance is in line with expectations, product optimization and management improvement.
The company’s operating income for the first three quarters of 2019 was 196.
780,000 yuan (at least -3.
57%), net profit attributable to mother is 3.
430,000 yuan (ten years +47.
61%), net profit after deducting non-attribution is 2.
64 ppm (decade +20.
Selling expenses 2.
590,000 yuan (at least -12.
35%); administrative expenses 5.
56 ppm (at least -13.
84%); finance costs -0.
3.6 billion (+48.
10%), foreign exchange gains decreased compared to the previous year.
The increase of the company’s net profit attributable to its mother in the first three quarters is that the structure of aviation products has been optimized and the gross profit margin has continued to increase to 6.
29%, 0 per year.
Reducing the burden and focusing on the main business, profit margins still have room for improvement.
Due to the uncertainty of the development of the civil aircraft business, the company replaced the introduction of large, focusing on the main business instead of the civil aircraft business.
As Shen Fei’s civil aircraft no longer exceeds the scope of consolidated statements, the corresponding tax expenses have decreased.
The company is reporting budgeted taxes and surcharges of 2959.
220,000 yuan, at least -50.
The company is reporting a maximum gross margin of 5.
67%, the expected price of new products will be converted to the 天津夜网 official production price, and gross margin is expected to improve structurally.
Catalysts: reform of the pricing mechanism for military products; restructuring of research institutes.
Risk warning: The progress of new model development is not up to expectations; competition in the global aviation industry is intensifying.