AVIC Shen Fei (600760) 2019 Semi-annual Report Comment: Balanced production caused a significant increase in operating income during the period, the expense ratio fell and the net profit flexibility

AVIC Shen Fei (600760) 2019 Semi-annual Report Comment: Balanced production caused a significant increase in operating income during the period, the expense ratio fell and the net profit flexibility increased

Investment Highlights The company released its semi-annual report for 2019: the company achieved operating income of 112.

$ 8.5 billion, an annual increase of 80.

35%; net profit attributable to mother 4.

310,000 yuan, an increase of 331 in ten years.

68%; net profit after deduction to mother 4.

110,000 yuan, an increase of 352 in ten years.

16%; net operating cash flow -44.

48 ‰, a decrease of 19 per year.

26 trillion; estimated average return on net assets5.

33%, an increase of 3 per year.

94 units.

As the company continues to promote balanced delivery and increase in product sales, it is expected that the cumulative net profit in the third quarter will increase compared with the same period last year.

  In the first half of 2019, the growth of the company’s operating income and net profit attributable to mothers was mainly due to the company’s report of gradually vigorously promoting “balanced production”.

The company achieved high-level revenue target 51 in the first half of the year.

23%, to achieve the annual net profit target of 53.

33%, about 31% of the 2018H1 revenue target completion rate.

05%, the production rhythm is significantly ahead.

From 2017 to 2019, the company’s quarterly revenue balance improved significantly.

In the first three quarters of 2018, the company gradually realized net profit3.

1.5 billion, to achieve 42 of the highest net profit.

21%, net profit has been achieved in the first half of this year4.

33 ppm, 53 of the long-term target profit.

33%, the effect of balanced production is obvious.

  In the first half of 2019, the company’s comprehensive gross profit margin was 8.

54%, an increase of 0 every year.

50 units; net interest rate 3.

84%, an increase of 2 per year.

21 units.

Company period expenses 3.

66 ppm, an increase of 29 in ten years.

80%, accounting for 3% of operating income.

24%, a decrease of 1 per year.

With 26 units, the company’s production and operation efficiency has been greatly improved.

  Shen Fei Company is the only first-level wholly-owned subsidiary of AVIC Shen Fei. It is responsible for the operation of all of AVIC Shen Fei’s business operations, and achieved revenue 112 in the first half of 2019.

45 ‰, an annual increase of 79.

71%, accounting for 99% of the total revenue of listed companies.

65%; realized net profit4.

250 thousand yuan, an increase of 323 in ten years.52%, accounting for 98 of the total net profit of listed companies.


  Shenfei’s net profit margin was 3 from 2015.

18% increased to 3 in 2019H1.


  The company is a junior fighter assembly company and needs to purchase avionics, mechanical and electrical products from China Aviation Industry Corporation and its subsidiaries.

In 2019, the company expects the amount of related transactions of purchased goods to be 122.

68 ppm, an increase of 25 in ten years.

82%; Amount of labor-related transactions accepted 6.

54 ppm, a 71-year increase of 71.


  In the first half of 2019, the company’s accounts receivable and bills29.

28 ppm, an increase of 41 in ten years.


Company inventory 88.

7.3 billion, down 3 each year.

84%, the first is the reduction in work in progress.

The company received funds in advance 19.

41 trillion, the score at the beginning of the period fell 79.

55%, 67 funds received in advance in the same period in 2018.

62 trillion, an estimated drop of 38 early last year.


According to 2018H1 in 2019H1, the pre-receipt revenue has decreased significantly, which also reflects that the pace of product delivery in 2019H1 is earlier than 2018H1.

  In the first half of 2019, Shenfei Company completed the performance commitment value of 61 for the year.

59%, gradually completing the 3-year performance 淡水桑拿网 commitment value of 87.

20%; the wire harness company completed the year’s performance commitment value of 119.

82%, gradually completing the 3-year performance commitment value of 112.


  We maintain our profit forecast and expect the company’s net profit attributable to the parent to be 9 in 2019-2021.



1.6 billion, EPS is 0.



87 yuan / share, corresponding PE is 48/36/36 times (corresponding to the company merger on August 27, 2019), maintaining the rating of “prudent increase”.

  Risk Warning: The delivery of military products is less than expected.