AVIC Hi-Tech (600862): Stripped real estate focused on aviation manufacturing high-quality track leader broke out of the cocoon
The company issued an announcement on December 25: The company transferred its 100% equity interest in Jiangsu Zhihao Real Estate Development Co., Ltd. by publicly listing through a proprietary transaction in Beijing, and finally determined that the transferee was Nantong Industry Holding Group Co., Ltd. with a transaction price of 100491.
If the listing transaction is completed before the end of 2019, it will have a positive impact on the company’s 2019 annual results.
The company promised 5 years during the major asset reorganization in 2015, and withdrew from the real estate business in an orderly manner. Since 2015, the company has actively reduced the size of the real estate business and has withdrawn from the real estate business altogether.
After that, the company’s main business will focus on aviation new materials and aviation special equipment (machine tool) business.
With the acceleration of military aircraft installation and the increase in the proportion of composite materials, the company’s performance growth momentum is strong.
Aviation carbon fiber prepreg is one of the fastest growing track in the military sector. The high-performance resins, aviation prepregs, and aviation Nomex honeycombs of the subsidiary AVIC are leading the market. They are today’s military aircraft carbon fiber prepregs.The absolute main force of supply is also the main source of the current performance of AVIC Hi-Tech.
The company is the only listing platform for 625 aviation (manufacturing institutes).
The strength of the manufacturing academy is under the jurisdiction of China Aviation Composite Materials Center (military aircraft carbon fiber composite 杭州夜网 material incubator), intelligent manufacturing equipment center, precision institute (303 institutes) and special institutes (637 institutes). Related high-quality assets are expected to be further integrated.
The company’s machine tool business is expected to gradually improve and the loss reduction will be obvious. In the future, it is expected to cooperate with the Intelligent Manufacturing Equipment Center of the Manufacturing Institute to become a new growth point of the company’s performance.
Considering the impact of the divestiture of the real estate business on the current profit and loss, we expect the company to return to its parent’s net profit in 2019-2021.
270,000 yuan, EPS0.
38 yuan / share, corresponding to PE27 / 36/27 times the closing price on December 25, maintaining the rating of “prudent increase”.
Risk warning: The growth rate of the composite material business is less than expected; the machine tool business is less than expected.