AVICHM(600765) SINOLINK SECURITIES·2024-11-28 04:41Investment Rating - The report maintains a "Buy" rating for AVIC Heavy Machinery [4][6] Core Views - AVIC Heavy Machinery has become the largest shareholder of Anji Precision Casting, acquiring a 24.77% stake, which enhances its position in the aviation casting market [5][6] - The company aims to leverage synergies from this acquisition to strengthen its casting capabilities and focus on becoming a leader in the forging and casting industry [6] - The report highlights the significant growth potential in the aviation casting market, referencing Howmet's 2023 revenue of 765 million [6] Financial Projections - The projected net profit for AVIC Heavy Machinery from 2024 to 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 [6][9] - The report anticipates a revenue increase from 10.577 billion RMB in 2023 to 12.233 billion RMB in 2024, reflecting a growth rate of 15.66% [9] Business Strategy - The company is transitioning from a forging leader to a key player in aviation infrastructure, aiming to create an integrated supply chain from material research to precision component delivery [6] - AVIC Heavy Machinery is actively investing in upstream and downstream operations to enhance its production capabilities and market reach [6] Market Position - Anji Precision Casting is noted as the only specialized casting enterprise in the national defense system, expected to benefit from new aircraft engine production [6] - The report emphasizes the company's strategic moves to consolidate its position in the aviation industry and capitalize on high demand [6]