Zhongzhi shares (600038) event comment: new growth accelerates performance growth

Zhongzhi shares (600038) event comment: new growth accelerates performance growth

Event: The company released an interim report: The report realized an operating income of 6.9 billion US dollars, an annual increase of 28.

75%; realize net profit attributable to mother 2.

40,000 yuan, an increase of 35 in ten years.


Key points of investment: strong production and delivery, and cost optimization during the period.

According to the number of reports, while the company’s inventory scale has remained stable, the number of production and delivery has increased, and the revenue growth rate has reached 28.

75%; in terms of cost, gross margin decreased by 1.

36PCT; In terms of three fees, the scale of sales and management expenses remained stable. Most of the rejections were operating debts and cash expenditures in hand, and the total reported revenue reached 0.

340,000 yuan, under the overall impact, the company’s period expense ratio dropped to 7.

42%, the lowest level of the average.

The Army needs equipment urgently for transformation, and new releases of services accelerate the release of demand.

Helicopters are the supporting equipment for Army Aviation construction. The quantity and level of equipment are important indicators of the combat effectiveness of the army.

At present, the domestic army is in the transitional development stage. The air assault force represented by the army aviation has become the focus of current construction, and the size of the army is constantly expanding.

Relatively speaking, the new general-purpose helicopter Zhi-20 has the advantages of strong environmental adaptability and good versatility. It is a helicopter model that is gradually needed.

According to 杭州夜网论坛 the analysis of Jane’s Defense Weekly, the Zhi-20 may have entered the Army Aviation Service in small batches, and the subsequent delivery has gradually increased, becoming an important driving force for the company’s performance growth.

Earnings forecast and investment rating: Maintain Buy rating.

Under the transformation and development of the army, the gap in demand for helicopter equipment is obvious; new general-purpose helicopters have been commissioned, and subsequent delivery has continued to climb.

It is expected that the net profit attributable to mothers for 2019-2021 will be 6, respectively.

5.8 billion, 7.

9.3 billion and 9.

44 trillion, corresponding EPS is 1.

12 yuan, 1.

35 yuan and 1.

60 yuan, corresponding to the current expected PE is 42 times, 35 times and 29 times, maintain BUY rating.

Risk reminders: 1) The new delivery is less than expected; 2) The cost control is less than expected; 3) The company’s profit is less than expected; 4) Systemic risk.