Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 89.41 RMB per share, based on a 60x PE for 2025 [4][6]. Core Insights - The company, Aviation Industry Chengfei (中航成飞), is a leading player in China's aviation defense equipment sector, having achieved significant milestones in military aircraft development, including the J-10 and J-20 fighter jets [2][18]. - The company has demonstrated robust revenue growth, with a CAGR of 18.5% from 2021 to 2023, increasing revenue from 533.9 billion RMB to 749.68 billion RMB, and net profit growing from 18.5 billion RMB to 24.23 billion RMB during the same period [36][38]. - Chengfei is positioned to benefit from the increasing demand for military aircraft and the expansion of its export capabilities, with a military trade scale that is the largest in China [2][3]. Summary by Sections Company Overview - Chengfei, established in 1958, is a major base for the research and production of aviation equipment in China, having developed various military and civilian aircraft components [18][21]. - The company recently went public through a reverse merger with AVIC Electromechanical, with shares listed on January 22, 2025 [18][21]. Investment Logic - Chengfei leads the domestic military aircraft development wave, with significant advancements in both manned and unmanned aircraft technologies [2][3]. - The company has a strong revenue generation capability, with 2023 revenue reaching 749.68 billion RMB, translating to an impressive per capita revenue of 543.2 million RMB [2]. Industry Positioning - Chengfei's integrated approach to research, manufacturing, testing, and maintenance enhances its competitive edge within the aviation industry [3][24]. - The company is actively involved in creating an aviation innovation ecosystem, focusing on high-end aerospace technologies and digital transformation [3][4]. Financial Projections - The report forecasts net profits of 1.27 billion RMB, 39.89 billion RMB, and 50.41 billion RMB for the years 2024, 2025, and 2026, respectively, with corresponding EPS of 0.21, 1.49, and 1.88 RMB [4][8].
中航成飞：歼击机龙头华丽上市，引领我国航空防务装备跨越发展-20250228