AVIC SAC(600760) Tianfeng Securities·2025-05-09 08:15Investment Rating - The investment rating for the company is "Buy" with a target price set for the next six months [6][18]. Core Viewpoints - The company reported a significant increase in contract liabilities by 58% year-to-date, indicating strong future revenue potential. The net cash flow from operating activities improved significantly compared to the previous year [1]. - The company is actively expanding its military trade market, which is expected to enhance its growth prospects. The integration of research, manufacturing, and maintenance capabilities is also being advanced [2]. - The company has adjusted its fundraising plans, extending the validity of its private placement decisions by 12 months and modifying the fundraising targets [3]. Financial Performance Summary - For Q1 2025, the company achieved revenue of 5.83 billion yuan, a year-on-year decrease of 38.6%. The net profit attributable to the parent company was 430 million yuan, down 39.9% year-on-year. The gross margin was 12.6%, an increase of 0.55 percentage points year-on-year, while the net margin was 7.4%, a decrease of 0.14 percentage points year-on-year [1]. - The company forecasts net profits for 2025, 2026, and 2027 to be 3.83 billion yuan, 4.56 billion yuan, and 5.38 billion yuan respectively, with corresponding price-to-earnings ratios of 35.04, 29.40, and 24.91 [4][12]. Financial Data and Valuation - The company’s total revenue is projected to grow from 46.25 billion yuan in 2023 to 66.20 billion yuan in 2027, with a compound annual growth rate of approximately 15.75% [5][12]. - The earnings per share (EPS) is expected to increase from 1.09 yuan in 2023 to 1.95 yuan in 2027, reflecting a positive growth trajectory [5][12]. - The company maintains a strong market position with a total market capitalization of approximately 134.09 billion yuan and a price-to-book ratio of 8.88 [7].