AVIC XAC(SZ:000768) CMS·2025-08-26 03:05Investment Rating - The report maintains a "Strong Buy" rating for the company [2][3]. Core Insights - In the first half of 2025, the company reported operating revenue of 19.416 billion yuan, a decrease of 4.49% year-on-year, while net profit attributable to the parent company reached 689 million yuan, an increase of 4.83% year-on-year [1][8]. - The company's gross margin improved significantly, increasing by 1.38 percentage points to 7.27% [8]. - The company expects to maintain high levels of related party transactions, indicating strong downstream demand and a positive order growth outlook [8]. - A stock incentive plan was implemented to motivate core employees, with the first grant of 13.095 million shares at a price of 13.45 yuan per share [8]. Financial Performance - The company forecasts net profits attributable to the parent company for 2025, 2026, and 2027 to be 1.141 billion, 1.302 billion, and 1.488 billion yuan, respectively, with corresponding valuations of 71, 63, and 55 times [2][9]. - The company’s total revenue is projected to grow from 40.301 billion yuan in 2023 to 59.188 billion yuan in 2027, reflecting a compound annual growth rate [17][18]. - The net profit margin improved by 0.32 percentage points to 3.55% [8]. Key Financial Metrics - The company’s total market capitalization is approximately 81.3 billion yuan, with a current share price of 29.24 yuan [3]. - The return on equity (ROE) is reported at 4.9% [3]. - The asset-liability ratio stands at 70.7% [3].