AVIC AVIONICS(SH:600372) Soochow Securities·2024-08-28 19:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has deepened its layout in the civil aviation industry and is continuously advancing its construction goals for 2024 [1] - Despite a decline in revenue and profit in the first half of 2024, effective cost control measures have been implemented [2][3] - The company has made significant progress in its strategic layout for the civil aviation industry, establishing a solid foundation in aircraft research and maintenance systems [3] - The company is committed to accelerating transformation and upgrading, focusing on technological innovation and high-quality development [3] - The earnings forecast for the company remains optimistic, with projected net profits for 2024-2026 being 2.148 billion, 2.500 billion, and 2.834 billion respectively [3] Financial Performance Summary - In the first half of 2024, the company achieved total revenue of 11.478 billion yuan, a year-on-year decrease of 17.90%, and a net profit of 903 million yuan, down 11.84% year-on-year [2][3] - The gross profit margin and net profit margin for the first half of 2024 were 25.51% and 8.58%, respectively, with declines of 4.57 percentage points and 2.11 percentage points year-on-year [2] - The company’s total revenue is projected to grow from 29.007 billion yuan in 2023 to 42.104 billion yuan in 2026, reflecting a compound annual growth rate [9] - The projected earnings per share (EPS) are expected to increase from 0.39 yuan in 2023 to 0.59 yuan in 2026 [9] Market Data - The closing price of the company's stock is 11.51 yuan, with a market capitalization of approximately 55.696 billion yuan [5] - The price-to-earnings (P/E) ratio is projected to decrease from 29.52 in 2023 to 19.65 in 2026, indicating potential value appreciation [10]