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Zhongzhi Shares (600038) 2018 Annual Report Commentary Report: New Trend of Prosperity Trend Helps the Company to Continue High Growth

Zhongzhi Shares (600038) 2018 Annual Report Commentary Report: New Trend of Prosperity Trend Helps the Company to Continue High Growth

The report guide company released the 2018 annual report, which achieved 130 revenue this year.

66 ppm, a ten-year increase of 8.

44%; net profit attributable to mother 5.

100 million, basic profit income 0.

87 yuan / share, the average annual growth rate of 12.

07%; ROE is 6.

83%, increasing by 0 every year.

34 units; net cash flow from operating activities9.

5.5 billion, an increase of 55 in ten years.

59%.

Financial indicators for investment are improving overall. The new increase helps the company ‘s high-performance growth. The company ‘s gradual revenue and profit growth in 2018 indicate that military equipment 厦门夜网 procurement has returned to normal after the end of the military reform.It is expected to return to high growth; at the same time, the company’s fourth-quarter 2018 revenue and profits increased simultaneously. In combination with the annual report, it was found that the decrease in research and development costs was mainly due to the completion of some research and development projects.

According to the characteristics of the aviation product delivery cycle, the new aircraft has a “climbing period” of 2-3 years in the initial delivery period. We expect the company to maintain a year-on-year growth trend in the next three years.

The company’s ROE has returned to historical highs, and net cash flow from operating activities has increased by 55 each year.

59%.

Advances in balance sheets (changed to contractual 杭州桑拿养生会所 debt) grow each year.

62%, the inventory increased by 4 in ten years.

08%, indicating that the company has sufficient orders and maintains stockpile production; invoices receivable increase and increase by 24.

69%, with an expected ten-year growth rate of 34.

39%, first and foremost is an increase in delivered products.

We believe that the company’s business climate this year will reset the balance sheet to the income statement and cash flow statement.

The demand for helicopters continues to expand, and the market for military-civilian integration is broad. After the military reform, the Army Aviation Corps expansion and the construction of the Marine Corps have increased the demand for military helicopters.

As a leader in the helicopter industry, the company will benefit from the good development of the entire industry.

With reference to the preparation of the U.S. Army helicopters, we predict that the demand for Army helicopters will reach 1,500 in the future, and the market space is about 1800 ppm. According to the “13th Five-Year Plan” of General Aviation, we predict that there will be about 600 domestic helicopters in 2020Gap, the company’s civil aircraft business promoted.

Asset injection expectations are catalysed, military pricing reforms improve the company’s profit margins, and the company is the only listing platform for AVIC’s helicopter business, with clear asset integration attributes.

Listed companies also have related assets such as military helicopter final assembly, helicopter R & D design, and some helicopter operation and maintenance, which will increase the company’s performance after injection in the future.

The current pricing mechanism of military products seriously violates the profitability of military industrial enterprises. The reform of the pricing mechanism of military products is good for OEMs, and there is still much room for improvement in the company’s net interest rate.

Profit forecast and estimation According to the company’s announcement on daily connected transactions, the company is expected to grow by about 26% in the first half of 2019. We expect the company to achieve revenue of 162 in 2019-2021.

48/206.

71/264.

68 ppm, an increase of 24 in ten years.

35%, 27.

23%, 28.

05%, net profit attributable to mothers was 6 respectively.

51/8.

61/11.

460,000 yuan, an increase of 27 in ten years.

50%, 32.

31%, 33.12%, corresponding EPS is 1.

10/1.

46/1.

94 yuan / share, currently the corresponding PE for 2018-2020 is 41.

45/31.

33/23.

53 times, give “overweight” rating.

Risks suggest that the pace of aviation product delivery is slower than expected; the demand for helicopters is less than expected.