AVIC SAC(SH:600760) Guoyuan Securities·2024-09-06 04:00Investment Rating - The report assigns a "Buy" rating for AVIC Shenyang Aircraft Corporation (600760) [10]. Core Views - The company is experiencing steady improvement in profitability, with ongoing cost reduction and efficiency enhancement efforts [3]. - The operational plan for the year is progressing smoothly, with significant completion rates for both revenue and net profit against annual targets [4]. - The company focuses on high-quality development in the aviation manufacturing sector, maintaining a stable revenue contribution from aviation products [5]. - As a key player in China's aviation industry, the company is advancing its defense equipment business and has made significant strides in developing next-generation aircraft [6]. - The company is a major supplier for the C919 aircraft project, positioning itself to benefit from the growing demand in the civil aviation market [9]. Financial Performance - In the first half of 2024, the company achieved operating revenue of 21.625 billion yuan, a year-on-year decrease of 6.59%, while net profit attributable to shareholders was 1.618 billion yuan, an increase of 8.39% [3]. - The company's operating expenses ratio was 3.25%, an increase of 0.88 percentage points year-on-year, with R&D expenses rising significantly [3][9]. - The company completed 42.38% of its annual revenue target and 42.93% of its net profit target by the end of Q2 2024 [4]. R&D and Market Position - R&D expenses increased by 38.73% year-on-year, reflecting the company's commitment to enhancing core technologies and maintaining a competitive edge [9]. - The company has seen a steady increase in technical personnel, indicating a strong focus on talent development [9]. - The civil aviation market is projected to receive 9,284 aircraft over the next 20 years, with the company positioned to capture a significant share of this market [9]. Future Outlook - The company is expected to achieve net profits of 3.401 billion yuan, 4.010 billion yuan, and 4.751 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 1.23 yuan, 1.46 yuan, and 1.72 yuan [10].