AVICHM(600765) Orient Securities·2024-09-02 06:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 22.05 CNY, based on a projected EPS of 1.05, 1.25, and 1.50 CNY for 2024-2026 [2][4]. Core Insights - The company reported a slight revenue decline of 0.59% year-on-year for H1 2024, with total revenue of 5.472 billion CNY and a net profit of 0.723 billion CNY, down 7.02% [1]. - The civil aviation and civilian product sectors showed strong growth, with revenues increasing by 112.62% and 26.25% respectively, indicating a diversification in business operations [1]. - Excluding the impact of the consolidation of Hongshan, the company's performance remained stable, with a net profit margin of 13.92% and a gross margin of 30.65% [1]. Financial Performance Summary - For H1 2024, the company achieved a revenue of 5.472 billion CNY, with a net profit of 0.723 billion CNY, reflecting a decline of 0.59% and 7.02% respectively [1]. - The Q2 2024 results showed a revenue of 2.824 billion CNY, down 10.75%, and a net profit of 0.401 billion CNY, down 20.81% compared to the previous year [1]. - The gross margin decreased by 3.81 percentage points to 30.65%, while the expense ratio improved slightly to 12.29% [1]. Business Development Insights - The company is positioned as a leader in aerospace forging, benefiting from military aircraft upgrades and domestic engine replacements, which are expected to drive rapid growth in the aerospace forging sector [1]. - The company is actively pursuing new projects and products in the domestic civil aircraft market, aiming for comprehensive coverage of forging products [1]. - The international competitiveness of the company is steadily improving, supported by rapid growth in foreign trade outsourcing [1].