Aerospace Electric (002025) 2019 Interim Report Review: Strong Revenue Growth Military Structure and Material Cost Affect Gross Margin

Aerospace Electric (002025) 2019 Interim Report Review: Strong Revenue Growth Military Structure and Material Cost Affect Gross Margin

Aerospace 厦门夜网 Electric (002025) 2019 Interim Report Review: Strong Revenue Growth Military Structure and Material Cost Affect Gross Margin
The company released its 2019 Interim Report: Revenue 16.190,000 yuan, an increase of 38 in ten years.56%; net profit attributable to mother 1.8.7 billion, an annual increase of 19.17%; net profit after deduction to mother 1.740,000 yuan, an increase of 18 in ten years.17%, non-recurring gains and losses mainly come from government subsidies of 17 million yuan. Revenue for the first quarter of 20196.720,000 yuan, an increase of 39 in ten years.45%; net profit attributable to mother is 77.73 million yuan, an annual increase of 20.01%; the second quarter continued the high-growth trend in the first quarter with revenue of 9.48 ppm, an increase of 37 in ten years.95%, an increase of 41.07%, net profit attributable to mother 1.09 million yuan, an increase of 18 in ten years.58%, an increase of 40 from the previous month.23%, the absolute amount of revenue and profit in the second quarter hit a single quarter high. The company’s main sectors are scheduled to achieve rapid growth in revenue. At the same time, a newly established subsidiary, Guangdong Huajing, has consolidated revenue of 79.77 million yuan from March to June.Excluding the impact of Guangdong Huajing, the company achieved revenue of 15 in the first half of 2019.39 trillion US dollars, an annual increase of 31.67%; net profit attributable to mother 1.89 ppm, an increase of 20 in ten years.95%.In the first half of the year, the proportion of civilian products increased and the gross profit margin of civilian products surpassed that of high-end products; the increase in the supply price of precious metals and special chemical materials required for production led to faster cost growth than revenue, so the gross profit margin decreased in the first half of the year.38pct to 34.69%.Total period expenses 2.8.7 billion, an increase of only 9 per year.4%, 厦门夜网 operating efficiency has improved significantly. As the main industry-wide supporting enterprise for military products, the company is a decisive benefit target for compensatory procurement after the influence of military reform has been eliminated. It is an “integrator” for industry demand and a “weathervane” for prosperity. It will be even greater in 2019-2020Performance elasticity.We maintain our profit forecast for the company and expect the company’s net profit for 2019-2021.31/5.54/6.50 ppm corresponds to a PE of 29/23/19 times the closing price on August 19, maintaining the level of “prudent overweight”. Risk warning: Orders increase significantly after revenue recognition; industry competition intensifies, market share declines; weak capacity organization, performance releases fall short of expectations.