AVIC SAC(SH:600760) NORTHEAST SECURITIES·2025-08-28 02:13Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company experienced a significant increase in contract liabilities, doubling to 7.532 billion yuan, indicating strong downstream order demand recovery [2] - The operating cash flow turned positive, reaching 3.087 billion yuan in H1 2025, a substantial improvement from the negative 5.89 billion yuan in the same period last year [2] - The gross margin slightly declined to 12.25%, while the net profit margin improved to 7.77%, indicating stable profitability [2] - The company successfully completed a directed issuance of 4 billion yuan to accelerate the development and delivery of aviation weaponry [3] - The new generation of fighter jets, represented by the J-35, is expected to meet the needs of multiple military branches, driving demand and production ramp-up [3] - The company is actively expanding into the international market, participating in events like the Paris Air Show to showcase advanced models [3] Financial Summary - For H1 2025, the company reported revenue of 14.628 billion yuan, a year-on-year decrease of 32.35%, and a net profit of 1.136 billion yuan, down 29.78% [1] - The projected revenues for 2025-2027 are 48.809 billion yuan, 57.555 billion yuan, and 65.012 billion yuan, respectively, with corresponding net profits of 3.922 billion yuan, 4.717 billion yuan, and 5.379 billion yuan [3][4] - The earnings per share (EPS) are expected to be 1.38 yuan, 1.66 yuan, and 1.90 yuan for 2025, 2026, and 2027, respectively [3][4] - The price-to-earnings (PE) ratios for the same years are projected at 44.51, 37.00, and 32.45 [3][4]