中航机载：主营产品营收稳步增长，吸收合并圆满完成提升核心竞争力

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved a revenue of 29.007 billion yuan in 2023, a year-on-year increase of 4.63%, and a net profit attributable to shareholders of 1.886 billion yuan, up 39.62% year-on-year, primarily due to the completion of a merger [1] - The defense aviation industry has shown significant development, with subsidiaries meeting production tasks and enhancing delivery quality and efficiency [1][2] - The company is advancing its strategic layout in the civil aviation sector, with multiple products obtaining necessary certifications and achieving mass delivery of emergency rescue products [1][2] Summary by Sections Financial Performance - In 2023, the company's aviation products generated revenue of 24.738 billion yuan, a year-on-year increase of 8.63%, accounting for 85% of total revenue [2] - The gross margin was 29.73%, a decrease of 1.81 percentage points year-on-year, while the net margin was 7.41%, down 0.65 percentage points [2] - The company expects a revenue of 28.522 billion yuan in 2024, a slight decrease of 1.67% year-on-year, with a projected total profit of 2.437 billion yuan, an increase of 8% [4] Mergers and Acquisitions - The successful completion of the merger with AVIC Electromechanical has enhanced the company's core competitiveness and resource integration [3] - The merger allows the company to optimize its industrial layout and leverage scale effects, aligning with global trends in the aviation industry [3] Research and Development - The company is increasing its R&D investment, which is crucial for maintaining its competitive edge in the high-tech aviation industry [2] - The company possesses strong capabilities in independent R&D and innovation, which are expected to support steady performance growth [2] Market Position - The company holds a significant market share in the aviation electromechanical field and has a comprehensive product line with a competitive advantage [2] - The strategic importance of the aviation industry to national defense and modernization efforts underlines the company's role in the sector [2]