Avic Hi-Tech(SH:600862) EBSCN·2025-08-29 05:24Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved a revenue of 2.747 billion yuan in H1 2025, representing a year-on-year growth of 7.87%, and a total profit of 726 million yuan, up 3.06% year-on-year [1] - The company's net profit attributable to shareholders reached 605 million yuan, with a slight increase of 0.24% year-on-year [1] - The company is actively expanding in the civil aviation and low-altitude sectors, with significant growth in its core composite materials business [3] Summary by Sections Financial Performance - In H1 2025, the aerospace new materials business generated revenue of 271.73 million yuan, a year-on-year increase of 7.89%, driven by the growth in the delivery of prepreg products [2] - The net profit attributable to shareholders from this segment was 64.38 million yuan, up 1.75% year-on-year [2] - The aerospace advanced manufacturing technology business saw revenue of 28.85 million yuan, a substantial increase of 83.37% year-on-year, primarily due to the growth in revenue from aerospace components and specialized equipment [2] Profitability and Cash Flow - The company's gross margin slightly improved to 37.79%, an increase of 0.54 percentage points year-on-year, attributed to changes in product delivery structure [2] - Operating cash flow reached 894 million yuan, a significant increase of 160.85% year-on-year, mainly due to the maturity of notes received in the previous year [2] Growth Prospects - The company is focusing on the rapid incubation and transformation of advanced civil resin and prepreg technologies, enhancing the application of prepreg in low-altitude fields [3] - The subsidiary has completed certification for carbon brake discs for Boeing 747-400/400F and ARJ21-700 aircraft, and is working on certification for another model [3] - The company is actively advancing its capacity layout for commercial engine components and general aviation equipment, which will support the ongoing expansion in civil aviation and low-altitude economy [3] Earnings Forecast and Valuation - The report maintains the net profit forecasts for 2025 and 2026 at 1.316 billion yuan and 1.566 billion yuan, respectively, and introduces a new forecast for 2027 at 1.791 billion yuan [3] - The expected EPS for 2025, 2026, and 2027 are 0.95 yuan, 1.12 yuan, and 1.29 yuan, respectively, with corresponding PE ratios of 27X, 22X, and 20X [3]