Core Viewpoint - The report from Huafu International projects that the revenue of Cirrus Aircraft (02507) will reach $1.426 billion, $1.654 billion, and $1.928 billion in 2025, 2026, and 2027 respectively, with net profits of $162 million, $199 million, and $242 million for the same years. The firm initiates coverage with an "outperform" rating and a target price of $11.12 (equivalent to HKD 86.72) based on a discounted cash flow (DCF) valuation model [1]. Group 1: Company Overview - Cirrus Aircraft is a pioneer and global leader in the private aviation industry, having delivered over 10,000 SR2X series aircraft and more than 600 Vision Jets since its establishment in 1984. By the end of 2024, the company is expected to hold a dominant market share of 23.2% in the private aviation sector [2]. - The financial performance of Cirrus Aircraft shows strong revenue growth, increasing from $587 million in 2020 to $1.197 billion in 2024, while net profit surged from $36 million to $121 million during the same period, reflecting a compound annual growth rate (CAGR) of 32.3%. The net profit margin improved from 6.2% in 2020 to 10.1% in 2024 [2]. Group 2: Industry Trends - The global private aircraft market is experiencing steady growth in both delivery volume and value, driven by the expansion of high-net-worth individuals (HNWIs) and flight training students, as well as ongoing infrastructure development. The average sales price of private aircraft is also on the rise [3]. - The industry is characterized by high concentration, with Cirrus Aircraft leading in the piston aircraft segment. The market share of its two main aircraft series is on an upward trend, supported by the company's industry-leading safety performance and a comprehensive "product + service" ecosystem [3]. Group 3: Product and Competitive Advantage - Cirrus Aircraft's product line, ranging from the SR2X series to the Vision Jet, caters to diverse market needs, with the SR series targeting the high-end piston aircraft market and the Vision Jet positioned as a cost-effective option in the turbine aircraft category. The company's competitive advantages stem from innovative safety features, including the life-saving Cirrus Airframe Parachute System (CAPS) and the revolutionary Safe Return Emergency Autoland system [4]. - Cirrus has evolved beyond traditional manufacturing to offer a comprehensive "product + service" ecosystem, which includes flight training, aircraft management, and financing services. This high customer retention model generates recurring revenue, enhances brand loyalty, and leads to high repurchase rates and strong pricing power [4].
华福国际：首次覆盖西锐给予“优于大市”评级 目标价为86.72港元