AVIC Mechanical & Electrical (002013): The military aviation and defense sector grew at a rate of up to 8.

2% fully benefit from epitaxial growth and airborne special

AVIC Mechanical & Electrical (002013): The military aviation and defense sector grew at a rate of up to 8.

2% fully benefit from epitaxial growth and airborne special

Revenue from the military aviation segment was +8 in 2018 for ten years.

2%, the group’s related party transactions will increase by 57% in 2019. March 15, 2018 annual report released, the company exceeded the performance target, revenue 116.

370,000 yuan, rating +26 before 17-year adjustment.

05%, +4 after adjustment.

08%; net profit attributable to mother 8.

370,000 yuan, rating +44 before 17 years of adjustment.

51%, +16 after adjustment.

49%; gross margin 26.

3%, rising by 0 every year.

Single digit, this is the 5th consecutive year of gross margin up.

In addition, the company’s weight loss and fitness work has achieved results, with three fees accounting for 17%.

11%, a decline of 0 per year.

For 34 units, the rational use of funds raised by the company’s convertible bonds was an important reason, and the funds raised were used for project construction and liquidity improvement, and endogenous growth was expected.

We believe there are two reasons for the company’s continued growth.

(1) Concentration of the main military products industry is expected to make full use of the resources of the Aviation Industry Group to achieve growth: Of all the sub-sectors, the military aviation and defense sector achieved revenue 72.

8.3 billion, +8 in ten years.

17%; the company is expected to conduct 14 billion connected transactions with the group in 2019, each time +57.

3%, the release of military performance is expected.

(2) Continued epitaxial growth, and asset integration of Wuhan Instrument and others can be expected.

Xinxiang Airlines and Yibin Sanjiang Aviation contributed to the company’s performance. It is expected that the company is expected to continue to promote the merger of assets such as Wuhan Aviation Instrumentation (mainly military aircraft anti-icing system and other business) announced in 2014, and achieve effective extensional growth.

The two major sub-items of inventory directly point to the promotion of production, the continuous expansion of research and development, and the full benefit of airborne special funds. From the financial indicators: the company’s inventory reached 41 in 2018.

48 ppm, +3 for ten years.

9% of which is +7 for ten years in production.

8%, original average +4.

9%. It is expected that the company’s production and delivery will continue to develop in a healthy and long-term manner in the future.

Accounts receivable of the company for 67 years.

76 million, an estimated increase of 16 in the same period last year.

7.3 billion, previously +32.

8%, we think it is caused by the gradual transition from military procurement to budget payment.

It is expected that 18 years will be the year of recovery of military procurement, and 19 years is expected to be the year of restoration of financial indicators of supporting enterprises.

From the perspective of R & D investment: aviation mechanical and electrical products are the core functional products of the country’s weapon, and independent innovation has become its important development direction.

18 years of company research and development funding up to 11.

23 ppm, +16 a year.

99%, the proportion of operating income since August 17

59% rose to 9 in 18 years.
China’s 16 billion airborne major projects have been announced. AVIC, as the only domestic supplier of several important aircraft systems, has gradually continued to expand research and development investment, and the aero-mechanical product pedigree will be further improved, and the level of profit is expected to further increase.

The Group’s electromechanical platform fully benefits from airborne specializations and reforms of central enterprises. The strategic manufacturing forecast is expected to be revised. The company is a specialized research and development, experiment, and manufacturing platform for the aviation industry group’s affiliated electromechanical systems.Make an important contribution.

On March 1st, the Securities Regulatory Commission issued the “Administrative Measures for the Registration of the Science and Technology Innovation Board for the Initial Public Offering”. We believe that technology-based enterprises that meet the 杭州桑拿 national strategy and break through key core technologies will also usher in the possibility of revaluation.

In addition, 2019 is a tough year for the reform of state-owned enterprises. Under the background of state-owned enterprise reform, the company gradually integrates the mechanical and electrical assets of the companies affiliated to the group’s parent company and scientific research institutes, and continuously improves the ability to transform scientific and technological achievements.

Profit forecast: Due to the potential risks in the automotive industry, revenue growth in 19 will increase from 17.

87% fine-tuned to 17%, optimistic about the development of the civil aircraft market, raised 20-year revenue growth rate from 18.

26% to 20%, with revenue expected to be 136 in 2019-2021.



10,000 yuan, the net profit attributable to the mother is 10.



30,000 yuan, EPS is 0.



4.2 billion, PE is 28.




Risk reminder: the development prospects of the automotive industry, the progress of acquisition and integration is gradual, and the recognition of military revenue is delayed.