AVIC XAC(SZ:000768) Jin Rong Jie·2025-03-31 14:48Core Viewpoint - 中航西飞's 2024 annual report shows revenue growth but a decline in non-recurring net profit, indicating concerns about the company's core business profitability [1][4][6] Financial Performance - 中航西飞 achieved an operating revenue of 43.216 billion yuan, a year-on-year increase of 7.23% [1][4] - The attributable net profit reached 1.023 billion yuan, reflecting an 18.87% year-on-year growth [1][4] - However, the non-recurring net profit was 921 million yuan, down 1.40% year-on-year, suggesting a decline in core profitability [1][4] - The gross profit was 2.530 billion yuan, with a gross margin of 5.85%, significantly below the industry average, indicating pressure on cost control and product pricing [4] Industry Context - The defense and military industry faced significant capital outflow, with a 1.81% decline on March 31, 2025, and a net outflow of 2.175 billion yuan [5] - 中航西飞 experienced a net outflow of 89.175 million yuan, accounting for 15.94% of total trading volume, reflecting market skepticism about the military industry [5] International Market Challenges - 中航西飞 is involved in international cooperation and subcontracting, manufacturing components for Airbus and Boeing, but the reliance on these major clients is high [6] - In 2024, the company delivered 1,267 units for international subcontracting, with 677 units for Airbus and 559 units for Boeing, indicating limited market share [6] - The company faces increasing competition in the international market and needs to enhance technology development and product quality to improve competitiveness [6]