AVIC Shen Fei (600760): Revenue in the first quarter hits record highs and transforms and high growth is expected

AVIC Shen Fei (600760): Revenue in the first quarter hits record highs and transforms and high growth is expected

Event: The company announced the first quarter of 2019 report and actually realized operating income of 50.

USD 8.5 billion, an annual increase of 191.

27%, achieving net profit attributable to owners of the parent company.

9.8 billion yuan, 2 higher 杭州桑拿网 than the same period last year.

2.1 billion yuan, net profit after deduction to mother 1.

92 billion yuan, 2 higher than the same period last year.

2.5 billion.

Comments: 1. In the first quarter, revenue reached a record high. Revenue and profits increased a series of increasing company revenue growth, hitting a record high in the first quarter, with revenue reaching 25 in the same period of 18 years.

23%, compared with only 8.


In the initial period, the company incurred sales expenses of 19.42 million yuan, a decrease of 13.

66%; administrative expenses 1.

56 billion, an annual increase of 11.

47%; due to the decrease in interest income, the financial expenses were -5.44 million, with each reduction of 21.39 million yuan, the expenditure expenses remained stable as a whole. The company’s 杭州桑拿养生会所 first-quarter profit growth increased mainly due to the company’s significant increase in military revenue.

In addition, the company’s net cash flow from operating activities1.

81 billion yuan, an increase of 3 over the same period last year.

6.9 billion, also hitting the highest value in years, reflecting the company’s good operating conditions, expected to achieve rapid growth in performance.

2. The fighter jet assembly leader, benefiting from the high degree of prosperity in the industry, we believe that Shenfei is known as the “cradle of Chinese fighter jets”. The product lineage covers already listed heavy, long-range second- and third-generation fighter jets.Derived from a sea-based fighter.

We believe that the fourth-generation aircraft has been gradually reduced to speed up the replacement and replacement, and the fifth-generation aircraft has gradually stepped onto the historical stage. During the “13th Five-Year Plan” period, the internal aviation equipment industry has begun to enter an important stage of rising volume and price. The industry’s high prosperity is expected to remain.Combining deep historical accumulation and technological advantages, it is expected that the company’s industry leader position will continue to be solid and will fully enjoy the feast brought by industry growth.

And gradually, through the five-year procurement cycle of military products, the company’s military products orders began to accelerate, the company will enter the performance cashing phase, and high profit growth will continue to maintain.

3. Equity incentives motivate the company’s vitality and benefit long-term development. On October 18, 2018, the company issued the “Announcement on the Approval of the First Phase Equity Stock Incentive Plan Approved by the State-owned Assets Supervision and Administration Commission of the State Council.”
The incentive plan intends to award 317 to 12 company executives and 68 management and technical backbones who have a direct impact on the operating performance and sustainable development of listed companies.

10,000 shares of budget stock, accounting for 0 of the company’s share capital when the incentive plan was signed.


The reward price is priced at 22.

53 yuan / share.

In terms of unlocking conditions, it is required to be divided into three periods, and the previous fiscal year of the unlocking date of each period must be satisfied: 1) ROE is not less than 6 respectively.

5%, 7.

5%, 8.

5%; 2) Net profit compound productivity is not less than 10 respectively.

0%, 10.

5%, 11.

0%, and the average value of the two indicators is not lower than the 75th percentile of the target 12 companies; 3) The completion of the EVA index has reached the assessment target issued by the group company, and △ EVA is greater than 0; we believe that this distribution of equity incentive planIt helps to fully stimulate the enthusiasm of leaders and is beneficial to the long-term development of the company.

4. Profit forecast We estimate that the company’s net profit attributable to the parent in 2019-2021 will be 8, respectively.

7 billion, 10.

53 billion, 12.
4.4 billion, corresponding to an estimated 49/40/34 times, maintaining the “strong recommendation” level.

Risk Warning: The development of military products exceeds expectations.