AVIC SAC(600760) 兴业证券·2024-11-28 10:27Investment Rating - The report maintains an "Overweight" rating for the company [2] Core Views - The company's self-developed new-generation medium stealth multirole fighter, J-35A, made its debut at the 15th China International Aviation & Aerospace Exhibition [3][8] - The company's Q3 2024 revenue and profits declined year-on-year and quarter-on-quarter due to delays in contract signings [9][10] - The company aims to achieve annual revenue of 51.026 billion yuan and net profit of 3.762 billion yuan, requiring significant growth in Q4 2024 [24] Financial Analysis - In Q3 2024, the company's revenue was 3.673 billion yuan, down 68.01% YoY and 69.73% QoQ [10] - Net profit attributable to shareholders in Q3 2024 was 199 million yuan, down 77.11% YoY and 77.90% QoQ [10] - The company's gross margin for the first three quarters of 2024 was 12.48%, up 1.63 percentage points YoY [16] - The company's inventory at the end of Q3 2024 was 11.489 billion yuan, down 1.38% from the beginning of the year but up 21.72% YoY [21] Profit Forecast - The company's net profit attributable to shareholders is expected to be 3.765 billion yuan in 2024, 4.527 billion yuan in 2025, and 5.407 billion yuan in 2026 [25] - The EPS is forecasted to be 1.37 yuan in 2024, 1.64 yuan in 2025, and 1.96 yuan in 2026 [25] Industry and Product Development - The J-35A fighter is designed for air superiority missions, capable of engaging 3rd/4th generation enemy fighters, ground/sea-based air defense systems, and intercepting enemy aircraft, bombers, and cruise missiles [8]