FSSS(600399) 东方证券·2024-08-08 02:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.28 CNY, based on a 26X PE ratio for comparable companies in 2024 [3][5]. Core Views - The company is expected to benefit from the domestic large aircraft industry chain, particularly with the C919 aircraft orders exceeding 1000 units, which positions the company favorably for future growth [2]. - The company has seen significant improvements in production capacity and cost management, leading to a substantial increase in expected net profit for the first half of 2024, projected to be between 215-240 million CNY, a year-on-year increase of 36.8%-52.7% [2]. - The delivery cycle for the company's main products has decreased from approximately six months to 3-4 months, with further capacity increases anticipated following the launch of high-alloy small bar projects [2]. Financial Summary - Revenue is projected to grow from 8,575 million CNY in 2023 to 9,570 million CNY in 2024, reflecting an 11.6% year-on-year increase [4]. - The net profit attributable to the parent company is expected to rise from 362 million CNY in 2023 to 543 million CNY in 2024, marking a 49.8% increase [4]. - Earnings per share are forecasted to increase from 0.18 CNY in 2023 to 0.28 CNY in 2024 [4]. - The gross margin is expected to improve from 13.5% in 2023 to 16.0% in 2024, while the net margin is projected to rise from 4.2% to 5.7% [4].