Zhongzhi shares (600038): Helicopter leader continues good growth

Zhongzhi shares (600038): Helicopter leader continues good growth

The third quarterly report continued the growth trend of the interim report. Industry leading companies were scarce, and maintained a “buy” rating until the company achieved operating income of 105 in the first three quarters of 2019.

29 ppm, an increase of 28 in ten years.

63%; net profit attributable to mother 4.

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

12%, performance was in line with expectations.

The company continued its good growth trend in this year’s interim report, and its net profit growth rate was the highest in three quarters since 2014.

The company is the highest-scale helicopter production company, with breakthrough growth space and expected to reform. We expect the company’s EPS to be 1 in 2019-2021.

07 yuan, 1.

30 yuan, 1.

55 yuan. At present, the company estimates that it is in a higher position among aviation OEMs and maintains a “buy” rating.

  The operating income grew rapidly, and the period’s expenses performed well. In the first three quarters of 2019, the company achieved gross profit11.

880,000 yuan, an increase of 16 in ten years.

79%, business gross profit margin 11.

29%; realized operating profit 4.

51 ppm, an increase of 28 in ten years.


Initially, the company’s period 都市夜网 expenses totaled 7.

52 ppm (period expense ratio 7).

14%), an increase of 9 in ten years.

14%, an increase of 6296.

580,000 yuan.

Of the period expenses, operating expenses were 7485.

560,000 yuan, an increase of 8 in ten years.

78%, an increase of 603.

950,000 yuan; administrative expenses 5.

70 ppm, a six-year increase of 6.

61%, an increase of 3,532.

300,000 yuan; research and development costs

26 ppm, an increase of 33 in ten years.

12%, an increase of 3123.

130,000 yuan; negative financial expenses, realized interest income of 1805 from the balance.

250 thousand yuan, an increase of 114 in ten years.

29%, an increase of 962.

80,000 yuan.

The company’s rapid growth in operating income in the first three quarters of 2019 led to an increase in gross profit, and the period’s expenses performed well.

  The leading company in the domestic helicopter industry. The downstream demand is strong, and the company with a large amount of new growth is the only large-scale helicopter development and production company. Its products include military helicopters and AC series civilian helicopters., Has formed a “multi-type machine, dual-use military and civilian, serial development” product layout.

With the construction of the landing army aviation and the construction of naval and air force helicopter equipment, the downstream demand of the company’s products is strong.

The new 10-ton general-purpose helicopter Straight 20, which targets the “Black Hawk” of the United States, has made its public appearance at the 70th anniversary of the founding of the People’s Republic of China and the Tianjin Helicopter Air Show.General helicopters are the main model of military helicopters. According to “World Air Force 2019”, 3,862 of the 5,429 military helicopters of the US military are Blackhawks and their modifications. Therefore, we expect that the space will be transmitted in 20 increments in the future, and the installation progress will be accelerated.This constitutes a positive factor for the company’s performance growth.

  The domestic helicopter industry leader, the growth space is coaxial and is expected to benefit from reforms. The company is given a “Buy” rating as a domestic helicopter leader, which directly benefits from the domestic military helicopter equipment installation and navigation industry development, and as a main engine factory is conducive to military pricing reform.To improve asset profitability.

We maintain our profit forecast and expect the company 2019?
The net profit attributable to mothers will be 6 in 2021.

2.9 billion, 7.

64 billion, 9.

12 trillion, the corresponding EPS is 1.

07 yuan, 1.

30 yuan, 1.

55 yuan.

Comparable company wind unanimously predicts that PE will be 50 in 2019.

47 times, considering the company’s market level and growth space, the three quarterly report performed well, giving the company a PE of 50 in 2019?
53 times, giving a target price range of 53.


71 yuan / share, maintain “Buy” rating.

  Risk warning: military spending growth exceeds expectations, new product stereotypes exceed expectations, and navigation development is lower than expected.