AECC AEC(000738)2024-08-31 04:13Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company's revenue showed steady growth driven by its main business, with a 2.61% year-on-year increase in revenue to 2.806 billion yuan in H1 2024 [2][3]. - The net profit attributable to shareholders increased by 4.46% year-on-year to 470 million yuan in H1 2024 [2][3]. - The company benefits from increased orders and deliveries in its "two-machine" control systems, particularly in military aviation power control systems, which accounted for 84% of revenue in H1 2024 [3]. Summary by Sections Revenue Performance - In H1 2024, the company achieved revenue of 2.806 billion yuan, a 2.61% increase year-on-year [2]. - Q2 2024 revenue was 1.390 billion yuan, a slight decrease of 0.21% year-on-year [2]. - Revenue from key segments included 2.515 billion yuan from aviation engine and gas turbine control systems, 183 million yuan from international cooperation, and 108 million yuan from control system technology derivatives [3]. Profitability - The company's gross margin and net margin improved to 31.09% and 16.82%, respectively, with year-on-year increases of 0.36 percentage points and 0.26 percentage points [3]. - The overall expense ratio decreased by 0.51 percentage points compared to the previous year, with sales expenses increasing due to enhanced service support [3]. R&D and Operational Efficiency - R&D investment increased to 307 million yuan, a 5.11% year-on-year rise, with R&D intensity reaching 10.94% [3]. - Labor productivity improved to 224,800 yuan per person, a year-on-year increase of 8.49% [3]. Subsidiary Performance - The four major subsidiaries showed varied performance, with Hangfa Xikong achieving 1.208 billion yuan in revenue (up 1.70%) and a net profit of 187 million yuan (up 9.59%) [3]. Earnings Forecast and Valuation - The report forecasts net profits of 870 million yuan, 1.02 billion yuan, and 1.18 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 0.66 yuan, 0.77 yuan, and 0.90 yuan [4]. - The current stock price corresponds to P/E ratios of 29x, 25x, and 21x for the years 2024, 2025, and 2026 [4].