AECC AEC(SZ:000738) Tianfeng Securities·2025-05-07 03:00Investment Rating - The investment rating for the company is "Hold" with a downgrade from previous ratings [6]. Core Views - The company reported a revenue of 1.35 billion yuan in Q1 2025, a year-over-year decrease of 4.7%, and a net profit of 150 million yuan, down 43.6% year-over-year, primarily due to tax policy adjustments and price changes [1]. - The company achieved a revenue of 5.481 billion yuan in 2024, a growth of 2.95% year-over-year, and a net profit of 750 million yuan, up 3.26% year-over-year, indicating that the operational goals for 2024 were largely met [2]. - The company is focusing on the collaborative development of military, civilian, and fuel sectors, with a positive outlook on the long-term development of large aircraft business due to advancements in commercial engine development [3]. - The company is positioned as a major supplier of aviation engine and gas turbine control systems in China, benefiting from the growing demand in aviation equipment, large aircraft, general aviation, and drones, indicating significant long-term growth potential [4]. Financial Summary - For 2025, the company expects revenues of 5.316 billion yuan, a slight decrease from 2024, with net profits adjusted to 725 million yuan [4]. - The company’s revenue growth rates are projected to be -3.01% in 2025, followed by 11.36% in 2026 and 13.70% in 2027 [5]. - The company’s EBITDA for 2025 is estimated at 1.520 billion yuan, with a net profit margin of 13.64% [5]. - The company’s financial metrics include a PE ratio of 32.97 for 2025, decreasing to 25.78 by 2027 [5].