Zhongzhi Shares (600038) 2018 Annual Report Comment： The expected growth of the related party transaction results shows that the company’s rapid growth in 2019 is highly certain
Zhongzhi Shares (600038) 2018 Annual Report Comment: The expected growth of the related party transaction results shows that the company’s rapid growth in 2019 is highly certain
The company released its 2018 annual report, and the company gradually realized an operating income of 130.
7 ppm, a ten-year increase of 8.
44%; net profit attributable to mothers5.
10,000 yuan, an increase of 12 in ten years.
07%, basically speaking, the return is 0.
87 yuan, the profit distribution plan is to pay a cash dividend of 2 for every 10 shares.
60 yuan (including tax).
In addition, the company released the forecast of related party transactions in 2019. It is estimated that the total upper limit of sales of goods and materials to other subsidiaries of China Aviation Industry Corporation will be 190.
80,000 yuan, an annual increase of 25.
Opinion: The main business of aviation has grown steadily, and the company’s operations are gradually getting better.
Pioneer Aviation’s main business realized revenue of 127.
9.7 billion, an annual increase of 8.
16%, accounting for 98% of total revenue, gross margin 13.
92%, a decrease of 1 per year.
48%; 1.3 billion during the period, an increase of 3 in ten years.
53%, of which selling expenses1.
19 ppm, an increase of ten years.
84%; administrative expenses 8.
90,000 yuan, an increase of 21 in ten years.
68%, mainly due to the increase in employee compensation, depreciation and repair costs; research and development expenses of 300 million, so a decrease of 25.
14%, mainly due to the completion of some research and development projects leading to a reduction in research and development expenditure; the company’s current asset impairment loss and credit impairment loss -4304.
380,000 yuan, a reduction of 7374 per year.
470,000 yuan, mainly due to the increase in payment recovery and the implementation of new accounting estimates for the current period; 爱北京体验网 in addition, the increase in company government subsidies led to other income of 49.12 million yuan, a total increase of 41.3 million yuan.
Net operating cash flow 9.
55 ppm, an increase of 55 per year.
59%, the company’s overall business is gradually getting better.
The estimated value of connected transactions shows that the company’s high growth certainty in 2019 is high, and the company is expected to enter a new round of growth cycle.
In 2019, the company expects that the total cap of sales of goods and materials to other subsidiaries of China Aviation Industry Corporation will be 190.
80,000 yuan, an annual increase of 25.
7%, indicating that the company’s high certainty for high growth in 2019, we believe that it is mainly due to the typed installation of the new 10-ton helicopter.
Looking forward to the future, we believe that the new helicopters have high single-machine prices and high demand. Their gradual maturity and stereotyped delivery forces will enable the company to enter a new round of growth cycle, and the helicopter leader will usher in a new journey.
The civil aviation market has huge potential.
According to Rotorspot statistics, as of December 1, 2018, the number of Chinese civilian helicopters was 1064, only 1/12 of the United States, but the growth rate was obvious, and the CAGR in 10 years was close to 20%.
According to the statistics of Yaxiang Aviation, in 2017, the domestic helicopter market in the domestic civil helicopter market mainly consisted of the company ‘s AC series products, accounting for only 7%.huge.
Profit forecast, estimation and investment rating: We expect the company’s net profit attributable to its mother to be 6-2019.
400 million, 7.
97 trillion and 10 trillion, the original plan was estimated that the net profit attributable to mothers in 2018-2020 was 5 respectively.
00 ppm, 5.
9.4 billion and 7.
US $ 1.8 billion. Taking into account the valuation of comparable companies in the industry and the historical evaluation level of the company, we give the company 50 times PE in 2019, raise the target price to 55 yuan, and upgrade the rating to “strong push” rating.
Risk reminder: Equipment is being installed faster than expected, and reform progress exceeds expectations.