Inner Mongolia No. 1 Aircraft (600967): Railway business accelerates procurement of military products

Inner Mongolia No. 1 Aircraft (600967): Railway business accelerates procurement of military products

The event company issued announcements on June 21 and 25 respectively. China Railway Corporation and its subsidiary, Northern Venture, contracted for the purchase of 2,000 C70E general convertibles and 600 C80B special convertibles, with contract amounts of 7, respectively.

$ 3.4 billion and 2.

6.7 billion.

Key points for investment Accelerate the procurement of railway vehicles and increase the company’s second-half performance. Through multiple procurement contracts, the company’s railway vehicle delivery was concentrated in the third quarter, which increased year by year and promoted the company’s second-half performance.

China Railway plans to purchase 21 in the next three years.

60,000 railway wagons have been purchased over 100 billion yuan.

The continuous advancement of “transit-to-rail” can be seen everywhere, and the railway freight industry is expected to maintain stable growth for a long period of time. As the main supplier of railway vehicles, the company will continue to benefit from the purchase orders of the Corporation.

At the end of the “Thirteenth Five-Year Plan” period, the prosperity of military products business continued to be based on the military construction plans of developing countries. Mechanized construction will 无锡桑拿网 be basically realized in 2020, and the People’s Liberation Army will build a world-class military in 2050.

As the main contract manufacturer of upstream marine equipment, the company will greatly benefit from the future mechanized construction of the army.

As new models are successively installed, the company’s performance will usher in new growth points.

At the same time, in the past few years, military products delayed by the military reform will be compensated for delivery this year and next, and the company’s performance will promote accelerated growth.

Profit forecast and estimation Considering the accelerated installation of tank and armored vehicles and the recovery of the railway vehicle industry, we expect the company’s net profit to be returned to its mothers in 2019-2021 to be 6, respectively.

6.8 billion, 8.

50 billion, 11.

1.3 billion, with a budget benefit of zero.

40, 0.

50, 0.

66 yuan, corresponding to 28 for PE.

34, 22.

27, 17.

At the same time, we believe that the cash flow can better reflect the company’s true operating conditions to a certain extent. Using the DCF method, the company’s reasonable market value is 34.3 billion. As the only domestic listed marine equipment leader, the company continues to benefit fromFor new equipment construction, we give a “Buy” rating.

Risks suggest that the company’s domestic military product installation is slower than expected; the military trade market development is slower than expected; railway vehicle delivery is previously expected; group mixed reforms and military product pricing mechanism reforms are slower than expected.