AVIC SAC(SH:600760) Tianfeng Securities·2024-09-09 05:30Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months [5]. Core Views - The company reported a revenue of 21.625 billion yuan for H1 2024, a decrease of 6.59% year-on-year, primarily due to delays in contract signing. However, the net profit attributable to shareholders increased by 8.39% year-on-year to 1.618 billion yuan [1][2]. - The company is expected to benefit from the increasing demand for national defense equipment and its leading position in the aviation sector, which should support long-term performance growth [3][4]. Financial Performance Summary - For H1 2024, the company's gross margin was 12.53%, up by 2.1 percentage points year-on-year, and the net profit margin was 7.47%, an increase of 1.11 percentage points year-on-year [2]. - The company’s cash and cash equivalents stood at 8.311 billion yuan, a decrease of 46.63% from the end of the previous year, while accounts receivable increased by 97.88% to 14.097 billion yuan [2]. - The company’s revenue projections for 2024-2026 are 55.96 billion yuan, 64.91 billion yuan, and 75.30 billion yuan, respectively, with net profits expected to be 3.775 billion yuan, 4.491 billion yuan, and 5.397 billion yuan [3][4]. Strategic Initiatives - The company has launched a "Quality Improvement and Efficiency Enhancement" action plan aimed at accelerating technological innovation and enhancing production capabilities [3]. - The focus will be on developing a collaborative growth model for military and civilian aircraft, leveraging its position as a key player in the national defense sector [3]. Valuation Metrics - The projected P/E ratios for 2024, 2025, and 2026 are 29.78x, 25.04x, and 20.83x, respectively, indicating a favorable valuation trend as earnings grow [4][5].