Zhongzhi Shares (600038) 2019 Interim Report Review: Aviation Product Delivery Accelerates Growth and Exceeds Expectations

Zhongzhi Shares (600038) 2019 Interim Report Review: Aviation Product Delivery Accelerates Growth and Exceeds Expectations

In the event, Zhongzhi Shares released its semi-annual report for 2019, reporting that the two companies realized operating income of 69.

00 ppm, an increase of 28 per year.

75%; realize net profit attributable to shareholders 武汉夜生活网 of listed companies.

410,000 yuan, an increase of 35 in ten years.

50%; net profit attributable to shareholders of listed companies after deduction of non-deduction.

32 ppm, an increase of 35 in ten years.

18%.

  Commenting on the rapid delivery of aviation products, performance continued to grow rapidly35.

50% reported the baseline and the company achieved operating income of 69.

00 ppm, an increase of 28 per year.

75%; realize net profit attributable to shareholders of listed companies.

41 trillion, an increase of 44 in ten years.

73%.

The company’s previous growth in revenue and net profit significantly exceeded previous levels.

We believe that the rapid growth of revenue is mainly due to two aspects: (1) military helicopters enter the accelerated installation stage and rapid downstream demand growth; (2) AVIC Group has vigorously promoted balanced delivery.The ratio is significantly improved.

According to the World Air Force in 2019, there are a total of 5,429 US helicopters, 1,448 Russia, and 902 China.

There are currently only 4 armed helicopters equipped for every 10,000 active military personnel in the country.

13 aircraft, significantly lower than the United States (42.

35 aircraft), Russia (14.

29).

At present, 13 army aviation brigades and 2 air assault brigade structures have been formed each year. In the future, the number of army helicopters will be about 1620-1830. In the next three years, there will be a gap of about 500 military helicopters.

At the same time, the gradual delivery of new navy amphibious ships, Type 055 and Type 052 destroyers will drive new demand for naval helicopters.

R & D costs increase by 96 per year.

28%, continued to reduce the company’s core competitiveness report, the company’s research and development expenses reached zero.

94 ppm, an increase of 96 in ten years.

28%.

The company continues to increase its R & D investment to provide support for the company’s future growth.

The company’s new 10-ton general-purpose helicopter has strong expansion capabilities. It is expected that new products will be gradually introduced and gradually delivered, which will provide the company with long-term performance growth points.

Profit forecast We expect the company’s operating income to be 156 in 2019-2021.

80, 182.

00, 209.

350,000 yuan, the net profit attributable to shareholders of the parent company is 6.

48, 8.

11, 9.

69 ppm, corresponding EPS is 1.

10, 1.

38, 1.

64 yuan / share, corresponding to PE is 43, 34, 29 times, maintaining the “overweight” level. Risk warning: The delivery of military orders is less than expected, and the growth of the carbon beam business is less than expected.