AVIC SAC(SH:600760) SINOLINK SECURITIES·2024-08-29 03:02Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [25]. Core Insights - The company achieved a revenue of 21.625 billion RMB in H1 2024, a year-on-year decrease of 6.6%, while the net profit attributable to shareholders was 1.618 billion RMB, reflecting an increase of 8.4% year-on-year [4][11]. - In Q2 2024, the company reported a revenue of 12.132 billion RMB, down 13.2% year-on-year but up 27.8% quarter-on-quarter, with a net profit of 902 million RMB, which is a 6.0% increase year-on-year and a 26.0% increase quarter-on-quarter [4][11]. - The company's gross margin improved to 12.5% in H1 2024, up 2.1 percentage points year-on-year, and the net profit margin was 7.5%, up 1.0 percentage point year-on-year [14]. Summary by Relevant Sections Performance Overview - The company’s revenue in H1 2024 was 21.625 billion RMB, down 6.6% year-on-year, while the net profit was 1.618 billion RMB, up 8.4% year-on-year. The decline in revenue was attributed to delays in contract signings affecting product demand [4][11]. - As of the end of Q2 2024, the company’s contract liabilities were 2.952 billion RMB, a decrease of 55.97% from the end of Q4 2023, mainly due to the recognition of revenue from previously received advance payments [21]. Profitability Analysis - The gross margin for H1 2024 was 12.5%, an increase of 2.1 percentage points year-on-year, while the net profit margin was 7.5%, up 1.0 percentage point year-on-year. In Q2 2024, the gross margin was 12.9%, up 3.0 percentage points year-on-year [14][18]. - The company’s operating cash flow improved significantly, with a net cash flow of -5.89 billion RMB in H1 2024, an increase of 3.58 billion RMB year-on-year [21]. Asset and Investment Insights - As of the end of Q2 2024, the company’s fixed assets amounted to 5.066 billion RMB, an increase of 11.70% from the beginning of the year, while construction in progress was 1.07 billion RMB, down 21.01% [18]. - The company’s intangible assets increased to 1.609 billion RMB, a rise of 65.03% from the beginning of the year, primarily due to the acquisition of land use rights [18].