Hangfa Power (600893): Steady growth of Hangfa’s main business in the first quarter indicates that gradual growth can be expected

Hangfa Power (600893): Steady growth of Hangfa’s main business in the first quarter indicates that gradual growth can be expected
Events: 1. The company announced its 2018 annual report and realized a real operating income of 231.02 trillion, an annual increase of 2.43%; net profit attributable to mother 10.6.3 billion, an increase of 10 in ten years.82%; net profit after deduction is 7.1.9 billion, an annual increase of 36.83%, basic profit income is 0.47 yuan. 2. The company’s first quarter report of 2019 announced that it achieved operating income of 33.400 million, an annual increase 都市夜网 of 20.36%; net profit attributable to mothers was 3.91 million yuan, an increase of 61.6 million yuan over the same period last year; net profit attributable to mothers after deduction was 72.21 million yuan, an increase of 44.52 million yuan. Comments: 1. Aviation Development’s main business grew steadily, and gross margin declined slightly due to changes in product structure. In 2018, the company’s aero-engine and derivative products benefited from increased military orders and realized revenue of 197.1.2 billion, an annual increase of 4.02%, accounting for more than 85% of the total revenue, and the proportion of business revenue increased slightly, indicating that the company further focused on the main business.However, the gross profit margin of the aviation industry of Tier 1 companies decreased slightly.97 good 北京夜网 to 18.36% is basically the reason for the change in the product structure. At the same time, although the military product business and scientific research sales revenue increased, the repair business with a higher gross profit margin declined.In addition, the increase in labor costs and fixed depreciation expenses in fixed costs has also weighed on the gross profit margin.In terms of expenses, long-term companies incurred selling expenses2.14 billion, a decrease of 15 per year.52%; administrative expenses 17.4.6 billion, a decrease of 8 per year.14%; financial expenses 4.2.1 billion, a sharp decrease of 42 previously.9%, mainly because the company’s 17-year raised funds in place improved financial structure, the three expense ratios significantly reduced2.51 advantages, significantly improve profitability.During the 13th Five-Year Plan period, a number of new aviation equipment from developing countries will be delivered and delivered, and the aviation industry will maintain a high level of prosperity. As the main bearer of the aviation engine industry, the company will fully benefit from it.With the continuous delivery of new models, it is expected that more and more measurements will enter the maintenance period, and the proportion of the company’s repair business is expected to gradually increase, helping the company to improve its overall gross profit margin. 2. The first quarter was a good start, and the balance sheet indicates that incremental growth can be expected. The company’s first quarter performance in 2019 ushered in a good start, with its revenue hitting a record high in the same period, and its net profit turned into a loss for the first time in the first quarter.Mainly benefited from the increase in military delivery to drive revenue growth, and thus the company’s gross sales margin.08% is basically the same as the same period of last year, and the three expense ratios are 17.16%, a slight decrease from the same period last year.7 partners also contributed to the improvement of profitability.In terms of balance sheet, the initial company’s inventory was 17 billion, a record high, and accounts received in advance18.8.9 billion, a new high of nearly 4 years. Considering that military products generally arrange production plans according to order tasks, balance sheet data indicates that the company’s subsequent orders and production tasks are full, and it is optimistic that the company will gradually grow steadily. 3. The rapid development of aero-engines has gradually improved revenue and profits. The level of domestic aviation equipment manufacturing technology is developing at a high speed, and in the accelerated installation of aviation equipment, the number of fighters, transport aircraft and helicopters continues to increase, the demand for engines continues to increase, and the maturity of domestic military aviation engines continues to increase.The localization replacement process is progressing steadily, the overall number of scales will continue to increase, and the restructuring and maintenance business will continue to grow. It is expected that the company’s revenue will continue to increase and accelerate; gradually, the reform of the military industry is expected to continue to heat up this year. According to China Aviation News,The reform of the pricing mechanism for military products is coming soon. As the leader of aero engine general loading and unloading in developing countries, the company’s current gross profit margin and net profit margin clearly exceed the industry average. The reform of the pricing mechanism has gradually improved and improved the company’s profitability. 4. Profit forecast It is estimated that the company’s net profit attributable to the parent in 2019-2021 will be 12 respectively.25 billion, 15.69 billion, 19.2.4 billion, corresponding to an estimated 43/33/27 times, maintaining the “strongly recommended” level! Risk Warning: The risk of the new model development progress is less than expected.