AVICHM(600765) SINOLINK SECURITIES·2024-11-26 00:18Investment Rating - The report maintains a "Buy" rating for AVIC Heavy Machinery [4][5] Core Views - AVIC Heavy Machinery is accelerating its integration within the industry chain by managing its subsidiary, Anhong Company, which will enhance its precision processing capabilities and overall functional component capabilities [5] - The management agreement with Anhong Company includes performance incentives and management fees, which are expected to expedite Anhong's development [5] - The company is transitioning from a forging leader to a key player in aviation infrastructure, benefiting from the high demand in the aviation industry [5] Summary by Sections Company Overview - AVIC Heavy Machinery's main business includes the research, design, and manufacturing of aerospace forgings and castings, as well as mechanical processing and manufacturing [5] - The company is establishing a new ecosystem that integrates material research, forging, precision processing, and overall functional components [5] Financial Forecasts - The projected net profit for 2024-2026 is estimated at 1.568 billion, 1.885 billion, and 2.268 billion RMB, representing year-on-year growth rates of 18.0%, 20.2%, and 20.3% respectively [5] - The corresponding price-to-earnings (P/E) ratios are expected to be 19, 16, and 13 times for the years 2024, 2025, and 2026 [5] Performance Metrics - The company's revenue for 2024 is projected to be 12.233 billion RMB, with a growth rate of 15.66% [9] - The return on equity (ROE) is expected to increase from 11.56% in 2023 to 13.68% by 2026 [9]