AVICHM(600765) 中泰证券·2024-09-02 09:44Investment Rating - The report maintains a "Buy" rating for the company with a market price of 17.23 [1][5]. Core Insights - The company is expected to see significant capacity release in the second half of the year, driven by the successful implementation of two large forging machines, which will enhance its commercial and civil engineering projects [3][4]. - Despite a slight decline in revenue and net profit in the first half of 2024, the company’s profitability metrics, such as gross margin and net margin, have shown improvement, indicating a positive trend in operational efficiency [3][4]. - The company has secured long-term contracts with major clients, including Safran and Boeing, which are expected to contribute to revenue growth in the civil aviation sector [3][4]. Summary by Sections Financial Performance - In the first half of 2024, the company reported revenue of 5.472 billion yuan, a decrease of 0.59% year-on-year, and a net profit of 723 million yuan, down 7.02% year-on-year [3]. - The second quarter of 2024 saw revenue of 2.824 billion yuan, a decline of 10.75% year-on-year, with a net profit of 401 million yuan, down 20.81% year-on-year [3]. - The company achieved 46% of its annual revenue and profit targets in the first half of 2024 [3]. Capacity and Orders - The company is set to release capacity from two large forging machines in the second half of 2024, which will support its growth in commercial and civil engineering projects [3][4]. - The company has signed long-term contracts worth approximately 70 million yuan with Safran, Baker Hughes, and Rolls-Royce, and has also established collaborations with Boeing for titanium alloy components [3][4]. Business Segments - The hydraulic and control business has shown stable growth, with revenue of 1.076 billion yuan in the first half of 2024, an increase of 8.65% year-on-year [3]. - The company’s civil aviation revenue grew by 112.62% year-on-year, while its civil products business revenue increased by 26.25% year-on-year, indicating diversification in its business operations [3][4]. Future Outlook - The company’s revenue projections for 2024-2026 are adjusted to 11.956 billion yuan, 13.798 billion yuan, and 15.649 billion yuan, respectively, with net profits expected to be 1.541 billion yuan, 1.779 billion yuan, and 2.095 billion yuan [5]. - The expected earnings per share (EPS) for 2024-2026 are 1.04 yuan, 1.20 yuan, and 1.41 yuan, with corresponding price-to-earnings (P/E) ratios of 17X, 14X, and 12X [5].