Avic Hi-Tech(600862) Orient Securities·2024-10-24 03:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of 30.81 yuan, based on an adjusted EPS forecast for 2024 and 2025 [2][4]. Core Insights - The company reported a revenue of 3.821 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 5.48%, and a net profit attributable to shareholders of 912 million yuan, up 8.00% [1]. - The third quarter of 2024 saw a significant quarter-on-quarter profit growth, with a revenue of 1.274 billion yuan, a 5.29% increase, and a net profit of 308 million yuan, reflecting a 22.09% quarter-on-quarter growth [1]. - The company is actively preparing for production and inventory, indicated by substantial increases in prepayments and accounts payable, suggesting a proactive approach to meet downstream demand [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a gross margin of 38.52%, an increase of 1.08 percentage points year-on-year, and a net profit margin of 24.12%, up 0.69 percentage points [1]. - The company’s revenue and net profit forecasts for 2024 and 2025 have been adjusted to 5.056 billion yuan and 1.306 billion yuan, respectively, with an EPS of 0.79 yuan for 2024 and 0.94 yuan for 2025 [2][4]. Business Development - The company plans to invest 102 million yuan to establish a subsidiary focused on the low-altitude economy, which is expected to create new growth opportunities [1]. - The new subsidiary will target the low-altitude economy, including eVTOL and drone sectors, providing competitive standardized products [1]. Market Position - The company is positioned as a leader in the composite materials sector, with steady growth in its core business and a commitment to research and innovation for future development [6].