AECC AST(SH:600391) EBSCN·2025-05-05 15:22Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment over the next 6-12 months [5]. Core Insights - The company achieved a revenue of 3.85 billion yuan in 2024, a decrease of 14.77% year-on-year, while the net profit attributable to shareholders was 0.69 billion yuan, an increase of 42.85% year-on-year [1]. - The foreign trade revenue is growing rapidly, and the company is benefiting from equipment upgrades and opportunities in domestic aviation engine localization [2]. - The company aims for a revenue target of 4.46 billion yuan and total operating costs of 4.34 billion yuan for 2025 [1]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 3.85 billion yuan, down from 4.52 billion yuan in 2023, while the net profit increased to 0.69 billion yuan from 0.48 billion yuan in 2023 [4]. - The gross profit margin and net profit margin for 2024 were 16.09% and 3.53%, respectively, both showing improvements compared to the previous year [1][4]. Subsidiary Performance - The subsidiary China Aviation Engine Harbin Axle achieved a revenue of 0.907 billion yuan and a net profit of 0.118 billion yuan in 2024, with a net profit margin of 13.06% [2]. - The subsidiary Fast reported a revenue of 0.189 billion yuan and a net profit of 0.022 billion yuan, with a significant net profit margin increase of 11.62% [2]. Market Outlook - The company is positioned to benefit from the increasing demand for domestic aviation products due to the trend of localization in commercial aviation engines [2]. - The company plans to capture opportunities in the recovering international aviation and gas turbine markets, particularly targeting the European market for new growth points [1]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been raised by 40% and 77%, respectively, with projected net profits of 1.01 billion yuan and 1.52 billion yuan [3]. - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 0.30 yuan, 0.46 yuan, and 0.61 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 81x, 53x, and 40x [3][4].