AECC AEC(SZ:000738) ZHONGTAI SECURITIES·2024-08-31 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) with a market price of 18.60 [1]. Core Views - The company has shown steady growth in its main business and is advancing its low-carbon and low-altitude business development [1]. - The company is a leading domestic enterprise engaged in the research and production of aircraft engine control systems, characterized by high technical barriers and significant R&D challenges [2]. Financial Summary - Revenue Forecasts: The company is expected to achieve revenues of 58.00 billion, 65.29 billion, and 73.12 billion for the years 2024, 2025, and 2026 respectively [2]. - Net Profit Forecasts: The projected net profits for the same years are 8.27 billion, 9.94 billion, and 11.88 billion [2]. - Earnings Per Share (EPS): Corresponding EPS values are expected to be 0.63, 0.76, and 0.90 for 2024, 2025, and 2026 respectively [2]. - Price-to-Earnings (P/E) Ratios: The P/E ratios are projected to be 30X, 25X, and 21X for the years 2024, 2025, and 2026 respectively [2]. Business Performance - The company reported a revenue of 28.06 billion for the first half of 2024, representing a year-on-year growth of 2.61% [1]. - The net profit attributable to the parent company for the same period was 4.70 billion, with a year-on-year increase of 4.46% [1]. - The company achieved a sales net profit margin of 16.82%, which is an increase compared to the previous year [1]. Operational Insights - The company has enhanced its cost control capabilities while continuously increasing R&D investment, which is crucial for maintaining core competitiveness and improving operational performance [1]. - The company is actively expanding its market presence, particularly in civil aviation and low-altitude sectors, and is focusing on new energy solutions such as dual-fuel and hydrogen fuel systems [1].