AVIC SAC(SH:600760) SINOLINK SECURITIES·2025-08-25 15:20Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a significant quarter-on-quarter increase in performance, indicating a potential bottoming out of its financials, with a substantial increase in contract liabilities reflecting order recovery [1][3] - The gross margin remained stable, while the net profit margin saw a slight increase, indicating operational efficiency [2] - Successful fundraising of 4 billion RMB through a private placement is expected to accelerate new capacity construction, showcasing the company's confidence in future growth [2][4] Financial Performance Summary - For H1 2025, the company achieved revenue of 14.628 billion RMB, down 32.4% year-on-year, with a net profit of 1.136 billion RMB, down 29.8% [1] - In Q2 2025, revenue was 8.795 billion RMB, a decrease of 27.5% year-on-year but an increase of 50.8% quarter-on-quarter, with a net profit of 706 million RMB, down 21.8% year-on-year but up 63.9% quarter-on-quarter [1] - The company’s gross margin for H1 2025 was 12.3%, a slight decrease of 0.3 percentage points year-on-year, while the net profit margin was 7.8%, an increase of 0.3 percentage points [2] Future Projections - The company is projected to achieve net profits of 3.819 billion RMB, 4.634 billion RMB, and 5.577 billion RMB for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 12.54%, 21.33%, and 20.36% [4] - The estimated price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 48, 39, and 33 times, respectively [4]