Avic Hi-Tech(600862)2024-11-13 08:53Investment Rating - The investment rating for the company is "Add" [1][20][23] Core Views - The company reported a steady growth in revenue and profit for the first three quarters of 2024, achieving an operating income of 3.821 billion yuan, a year-on-year increase of 5.48%, and a net profit attributable to shareholders of 912 million yuan, up 8.00% year-on-year [2][5][6] - The gross margin and net margin have increased, with the gross margin for the first three quarters of 2024 at 38.52%, up 1.08 percentage points year-on-year [13][15] - The company is enhancing its control over the industrial chain by investing in Longsheng Technology and establishing a new subsidiary focused on the low-altitude economy [19][20] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved an operating income of 3.821 billion yuan, completing 76.42% of its annual operating plan, and a total profit of 1.074 billion yuan, completing 83.80% of its annual plan [5][6] - The net profit attributable to shareholders for Q3 2024 was 308 million yuan, a year-on-year increase of 5.25% [6][10] Revenue and Profitability - The revenue from the aerospace new materials business reached 3.772 billion yuan, a year-on-year increase of 6.19%, while the advanced manufacturing technology business reported revenue of 45.468 million yuan, up 4.64% year-on-year [10][11] - The company maintained a gross margin of 38.52% for the first three quarters of 2024, with a net margin of 23.87% [13][15] Cash Flow and Receivables - The net cash flow from operating activities for the first three quarters of 2024 was 142 million yuan, a decrease of 61.51% year-on-year, primarily due to reduced sales receipts [16][18] - Accounts receivable increased significantly, reaching 4.511 billion yuan, up 105.27% from the beginning of the year [18] Strategic Initiatives - The company invested 342 million yuan to acquire a 20% stake in Longsheng Technology to enhance its industrial chain control capabilities [19] - A new subsidiary, Shenzhen AVIC Aviation Manufacturing Technology Innovation Center Co., Ltd., is being established to focus on low-altitude economy projects [19][20] Earnings Forecast - The company maintains its profit forecast, expecting net profits attributable to shareholders of 1.146 billion yuan, 1.322 billion yuan, and 1.521 billion yuan for 2024, 2025, and 2026 respectively [20]