AVIC XAC(SZ:000768) Minsheng Securities·2024-08-27 07:31Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company achieved a revenue of 20.33 billion yuan in the first half of 2024, representing a year-on-year increase of 4.0%, and a net profit attributable to shareholders of 660 million yuan, up 16.3% year-on-year [2]. - The civil aviation business is expected to accelerate, with the company being a key supplier for major aircraft models like C919 and ARJ21, which may contribute to future growth [2]. - The company has adjusted its net profit forecasts for 2024-2026 to 1.12 billion yuan, 1.44 billion yuan, and 1.83 billion yuan respectively, with corresponding PE ratios of 59x, 46x, and 36x [2]. Financial Performance - In the first half of 2024, the company achieved a net profit margin of 3.2%, an increase of 0.34 percentage points year-on-year, while the gross margin decreased to 5.9% [2]. - The company’s revenue from aviation products was 20.08 billion yuan, accounting for 98.8% of total revenue, with a year-on-year growth of 3.2% [2]. - The company reported significant growth in other income, reaching 275 million yuan compared to 20 million yuan in the same period last year, primarily due to tax incentives [2]. Product and Market Insights - The company is focusing on its core aviation products, with a notable order of 100 C919 aircraft from China National Airlines, valued at 10.8 billion USD, scheduled for delivery from 2024 to 2031 [2]. - The company’s expenses increased slightly, with a total expense ratio of 2.8% in the first half of 2024, up 0.35 percentage points year-on-year [2]. Future Outlook - The company is positioned as a leading player in the large aircraft manufacturing sector in China, benefiting from the growth in special aircraft and large aircraft industries [2]. - The report suggests that the company will continue to implement reforms and efficiency improvements, which may support its growth trajectory in the coming years [2].