AVIC Shen Fei (600760) Interim Review: Balanced Production Outstanding Outstanding Performance Meets Expectations

AVIC Shen Fei (600760) Interim Review: Balanced Production Outstanding Outstanding Performance Meets Expectations

The company’s net profit attributable to mothers increased by 331 in 2019H1.

68%, performance growth in line with expectations The company issued a semi-annual report for 2019, with revenue of 112 in the first half.

85 ppm, an increase of 80 in ten years.

35%, net profit attributable to mother 4.

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

68%, net profit after deduction is 4

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

16%, the first half performance growth in line with expectations.

The current air force and navy’s equipment performance and operational level are inconsistent with those of the United States and Russia.

The inheritance of Air Force fighters and the construction of domestic aircraft carriers will inevitably increase the demand for advanced fighters.

AVIC Shen Fei is responsible for the production of advanced fighters. With long-term accumulated production experience and technology, it has continuously improved the production speed and scale of advanced fighters, and has broad development prospects driven by demand and technology.

What do we expect the company 2019?
In 2021, the EPS will be 0.



81 yuan, maintain “Buy” rating.

  In the first half of 2019, Shenfei, a wholly-owned subsidiary, had a revenue of 112.

45 ‰, an annual increase of 79.

71%; Net profit 4.

250 thousand yuan, an increase of 323 in ten years.


The company focuses on the three key planning timetables of raw material supply, parts production and assembly test flight, continuously strengthens the construction of the planning system, continues to improve the supply chain management system, and improves the balance of product delivery every quarter.

Judging from the company’s revenue and net profit data in the first and second quarters, the company’s enhanced balanced production in 2019 has achieved outstanding results, and its business income and profit have grown significantly.

  Reform and merger growth, the company’s future revenue and profits are expected to continue to rise. AVIC Shen Fei is the only aviation defense equipment manufacturer that integrates the design, processing and production of fighter aircraft and parts.

AVIC Shenfei, as one of the two giants of aviation industry fighters, mainly manufactures military aviation products. Its core models include J11, J15, J16, FC31, etc. Among them, J-16 is a multi-purpose fighter, which can be used as an attack assistance andThe reserve can be used in conjunction with the J-20, and can also perform a variety of other combat missions. It is expected that the Air Force will break through the demand for the J-16 in the future; the J-15 is the only carrier-based fighter currently. With the construction of the aircraft carrier formation in the future, the navy will definitely face the J-15 Carrier aircraft demand bearing capacity.

In addition, as an assembly unit, AVIC Shenfei will benefit from the reform of the pricing mechanism of military products in the future.

  We are optimistic about the company’s future development potential and maintain a “Buy” rating. AVIC Shen Fei is a leading enterprise in domestic military fighters. In the future, it will continue to transform the navy and air force equipment, expand the reform of military pricing mechanisms, and adjust internal state-owned enterprises.Profit levels are expected to rise steadily.

It is expected to have revenue of 227 in 19-21.



0.6 billion, net profit attributable to mother 8.



3.1 billion.

Comparable companies 2019Wind consensus PE average 51.

21X, taking into account the scarcity and leading position of a stock of AVIC Shen Fei, gives a certain estimated premium, giving the company 5合肥夜网5-56 times P / E estimates for 2019, with a target price range of 33.


46 yuan / share, maintain “Buy” rating.
  Risk Warning: Expenditures for military spending and military-civilian integration are expected, and the final batch of new products is not up to expectations.