AVIC Jianghang(SH:688586) Soochow Securities·2024-09-02 19:37Investment Rating - The report maintains a "Buy" rating for Jianghang Equipment (688586) [1] Core Views - The company focuses on its core business in aviation emergency response, with an emphasis on research and innovation as a key growth driver [2] - Despite a decline in revenue and net profit in the first half of 2024, the company increased its R&D expenditure to 12.27% of revenue, indicating a commitment to future technological upgrades and product innovation [1][2] - The company is expanding into new industries related to aviation emergency rescue, including high-altitude oxygen vehicles and emergency vehicles, leveraging its oxygen production technology [2] - Jianghang Equipment holds a leading market position as the only domestic research and manufacturing base for aviation oxygen systems and specialized inerting systems for fuel tanks [2] Financial Summary - In the first half of 2024, the company reported revenue of 593 million yuan, a year-on-year decrease of 6.51%, and a net profit of 104 million yuan, down 22.20% year-on-year [1] - The company's projected net profits for 2024-2026 are 244 million, 289 million, and 340 million yuan respectively, with corresponding P/E ratios of 27, 23, and 19 times [2] - The asset-liability ratio stands at 29.17%, indicating a healthy asset structure and strong short-term solvency [1][2] - The company has a market capitalization of approximately 6.62 billion yuan, with a closing price of 8.36 yuan per share [4][5]