Avic Hi-Tech(SH:600862) GF SECURITIES·2024-10-23 05:08Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 25.51 CNY per share, reflecting a 30x PE for 2024 [3][6]. Core Insights - The company reported a revenue of 1.274 billion CNY for Q3 2024, representing a year-on-year growth of 5.29% and a quarter-on-quarter growth of 3.61%. The net profit attributable to shareholders was 308 million CNY, with a year-on-year increase of 5.25% and a quarter-on-quarter increase of 22.09% [1][2]. - The company has a strong operational stability and is strategically positioned in the composite materials sector through its stake in Changsheng Technology, which is crucial for the supply chain [1]. - The establishment of a new subsidiary aims to accelerate the company's involvement in the low-altitude economy, enhancing its control over the aerospace composite materials industry [1][2]. Financial Summary - For the first three quarters of 2024, the company achieved a revenue of 3.821 billion CNY, a year-on-year increase of 5.48%, and a net profit of 912 million CNY, reflecting an 8.00% year-on-year growth [1]. - The company's gross margin for Q3 2024 was 41.07%, up by 4.12 percentage points year-on-year, while the net margin was 24.41%, down by 0.31 percentage points year-on-year [1]. - The earnings per share (EPS) for 2024 is projected to be 0.85 CNY, with estimates of 1.07 CNY for 2025 and 1.31 CNY for 2026 [2][6]. Business Segmentation - Revenue and net profit from the aerospace new materials segment grew by 6.19% and 10.74% year-on-year, respectively, driven by increased deliveries of prepreg and carbon brake products [1]. - The advanced manufacturing technology segment saw a revenue growth of 4.64% year-on-year, with a reduction in net loss due to decreased labor costs and fewer low-margin product deliveries [1].