Zhongzhi Shares (600038): Net profit in three quarters reported to high-growth companies in ten years growth expected

Zhongzhi Shares (600038): Net profit in three quarters reported to high-growth companies in ten years growth expected

On October 25th, the company released the third quarter report of 2019 and achieved operating income of 105.

2.9 billion, an annual increase of 28.

63%; net profit attributable to shareholders of listed companies4.

500,000 yuan, an increase of 32 in ten years.


Brief comment on the continuous high growth of operating income and net profit.

Affected by the volume of aviation products and balanced production, the company achieved operating income of 105.

29 ppm, an increase of 28 in ten years.

63%; operating profit 4.

51 ppm, an increase of 28 in ten years.

61%; net profit attributable to shareholders of listed companies4.

500,000 yuan, an increase of 32 in ten years.


The current contract debt is 37.

1.5 billion, a decrease of 13 from the previous period.

52%, indicating that the United Nations contract has achieved batch delivery in the report.

The company actively reduced costs and increased efficiency, with higher net profit growth.

The company’s selling expenses for the first three quarters were zero.

75 ppm, an increase of 8 per year.

78%; administrative costs remain below 5.

700 million, an annual increase of 6.

61%, both lower than the growth rate of sales revenue.

Finance costs are -0.

180,000 yuan, mainly for interest income.

The main companies in the report closely focus on the main line of supply-side structural reforms and adhere to innovation-driven. The company’s operations pay more attention to “improving quality, efficiency, and upgrading.” The company’s products pay more attention to “security, system, and innovation.””Order, service, integration”, the quality and efficiency of the company’s development continue to improve.

Helicopter manufacturing is the absolute main force, and the military aircraft market provides long-term performance support. The civilian aircraft market has gradually opened and Zhongzhi has become the only listing platform, which is the absolute main force of helicopter manufacturing.

AVIC Helicopter Co., Ltd. was formerly known as Hafei Aviation Industry Co., Ltd.

In 2013, AVIC Group injected operating assets related to the production and processing of aviation parts and components of its helicopter business segment into the civilian helicopter business into Hafei. At the end of 2014, the company changed its name to Zhongzhi.

After the injection of assets, in the helicopter sector, except for the assembly of armed helicopters, the overall listing has been basically achieved, and Zhongzhi has become the only listing platform.

The company’s core products are helicopters and related components, which have replaced each other in the non-linear helicopter industry.

After the improvement of product structure adjustment and development, the company has gradually completed the replacement of main product models, perfected the helicopter pedigree, and basically formed a good layout of “one machine with multiple types and series development”.

The huge demand for military aircraft provides long-term performance support.

According to WAF statistics, the number of military helicopters before 2017 accounted for about 4% of the world’s total, and there is still a gap with military powers such as the United States.

Frontier operations, amphibious landing operations, cross-border operations, and warship cruises all demand new military helicopters in the future. The number of helicopters needs to be changed quickly.

With the completion of the naval military reform, the Army Aviation Corps has been expanded to 11 Army Aviation Brigade and another Army Aviation Regiment. There is an urgent need for armed helicopters, new general-purpose helicopters and shipboard helicopters.

We believe that the company as a leader in the industry will directly benefit from the huge demand for military helicopters. The annual average growth rate of the company’s military revenue in the next 2-3 years is expected to maintain steady and rapid growth.

Demand for civil aircraft has grown rapidly, and product markets have gradually opened.

The number of Chinese helicopters differs greatly from the expected scale of navigation, and the advancement of low-altitude openness and the explosion of the navigation industry will further open up the company’s long-term growth space (it takes time).The Zhuhai Airshow Company signed a series of civil aircraft intent agreements that covered almost all the company’s civilian products.

With the gradual opening of domestic and foreign markets for civilian products, driven by the 深圳桑拿网 demand for civil aircraft and policy support, civilian products are expected to become a strong support for the company’s performance in the future.

The company is a leading company in domestic helicopters and will benefit directly from the rapid development of the military and civilian helicopter market in the future.

We are very optimistic about the company’s future development prospects and predict that the company’s net profit attributable to mothers from 2019 to 2021 will be 6 respectively.

310,000 yuan, 7.

5.2 billion, 8.

32 ppm, an increase of 23 per year.

55%, 19.

28%, 10.

66%, the corresponding 19 to 21 years EPS are 1.

07, 1.

28, 1.

41 yuan, corresponding to the current expected PE of 40.

05, 33.

58, 30.

24x, maintain BUY rating.