AVIC Aircraft (000768) 2018 Annual Report Comment: Lowering Costs During Steady Growth of Operating Income Helps Increase Profits

The company released its 2018 annual report: Report integration achieved revenue of 334.

68 ppm, a ten-year increase of 7.

69%; net profit attributable to mother 5.

580,000 yuan, an increase of 18 in ten years.

38%; net profit after deduction to mother 5.

29 ppm, a 57-year increase of 57.


In 2019, the company plans to achieve an operating income of 32.3 billion yuan, a decrease of 3 per year.

49%; plan to achieve industrial added value of 630,000 yuan, a year-on-year increase of 1.

69%; military and civilian aircraft completed production delivery as planned upstream; 380 landing gear and wheel brakes were delivered; export delivery was completed3.

$ 7.6 billion.

In 2018, the company’s overall gross profit margin was 6.

1%, a decrease of 1 compared with the same period last year.

16 units.

The report summarizes that the growth rate of the company’s net profit attributable 杭州桑拿 to the parent is much higher than the growth rate of revenue, mainly due to the decrease in the company’s expenses and expenses4.

2.8 billion yuan (a decrease of 24 per year).

12%), period expenses accounted for 5% of revenue from the same period last year.

71% dropped to 4.


Including sales expenses 3.

73 ppm, a decrease of 27 per year.

12%; administrative expenses are 900 million, down 6 every year.

45%; R & D expenses1.

22 trillion, down 51 a year.

22%; financial expenses-4918.

570,000 yuan, an estimated 4951 in the same period last year.

110,000 yuan is reduced by 9869 annually.

680,000 yuan, a decrease of 199 per year.


The company is a major production unit of large and medium-sized transport aircraft, bombers and special aircraft in developing countries. The military business is expected to continue to grow steadily in the future.

The company is an important supplier of aircraft landing gear systems and brakes, as well as an important supplier of C919, ARJ21, AG600 and foreign civil aircraft.

With the gradual commercialization of ARJ-21 and C919, the company, as the main structural contracting enterprise, has gradually ushered in a new growth engine.

In the future, the commercialization of C919 and ARJ21 is expected to bring an annual average of 41 to AVIC aircraft.

20,000 yuan to increase market space.

We adjusted our profit forecast according to the latest financial report, the company EPS0 for 2019-2021.



31 yuan / share, corresponding to PE73 / 64/55 times (2019/3/18), maintaining the rating of “prudent increase”. Risk warning: The purchase of military products exceeds expectations, and the domestic civil aircraft market has expanded less than expected.