Avic Hi-Tech(SH:600862) Soochow Securities·2024-10-22 13:30Investment Rating - The report maintains a "Buy" rating for AVIC High-Tech (中航高科) [1] Core Views - The company achieved stable revenue and profit growth, with total operating income reaching 3.821 billion yuan, a year-on-year increase of 5.48%, and net profit attributable to shareholders of 912 million yuan, up 8.00% year-on-year [2][1] - The growth is primarily driven by the aerospace new materials business, particularly the delivery increase of prepreg and carbon brake products [2] - The company has enhanced its product delivery capabilities and was selected as the sole supplier for the front fuselage work package of the CR929 aircraft by COMAC [2] - AVIC High-Tech's strategic investment in Changsheng Technology, a carbon fiber company, aims to strengthen its position in the aerospace supply chain and enhance its competitiveness [2] Summary by Sections Financial Performance - For Q3 2024, the company reported operating income of 1.274 billion yuan, a 5.29% increase year-on-year, and a net profit of 308 million yuan, up 5.25% year-on-year [2] - The total operating income for the first three quarters was 3.821 billion yuan, with a net profit of 912 million yuan, reflecting growth rates of 5.48% and 8.00% respectively [2] - The company’s R&D expenses were 100 million yuan, despite a 12.31% decrease from the previous year, indicating ongoing investment in innovation [2] Market Position and Strategy - The company is focusing on technological innovation and market expansion to maintain its leading position in the competitive aerospace industry [2] - The investment in Changsheng Technology for 341.6 million yuan to acquire a 20% stake is expected to enhance its role in the aerospace materials sector [2] Earnings Forecast - The report forecasts net profits for 2024, 2025, and 2026 to be 1.135 billion yuan, 1.379 billion yuan, and 1.630 billion yuan respectively, with corresponding P/E ratios of 28, 23, and 19 [2]