Guohai Securities·2025-09-22 14:03Investment Rating - The report maintains a "Buy" rating for the company [2] Core Insights - The report addresses key issues such as global aviation demand changes from Boeing and Airbus orders and delivery capabilities, analysis of major engine models and components, and the growth drivers for the company's compressor blades and rotating components [9] - Global passenger turnover is recovering, with a record high seat occupancy rate, and nearly 80% of the current commercial aircraft will be replaced in the next 20 years [9] - Boeing and Airbus orders have significantly increased, with the company’s precision forging blade business expected to accelerate growth due to faster engine deliveries [9] - The company is entering the overseas rotating component business to create a second growth curve amid tight overseas supply chains [9] - The company possesses core technologies in precision forging blades and structural component machining, making it one of the few specialized enterprises capable of mass production of compressor blades for leading international engine manufacturers [9] Summary by Sections Market Data - Current price: 25.43 CNY - 52-week price range: 12.90-28.10 CNY - Total market capitalization: 6,570.67 million CNY - Average daily trading volume: 109.42 million CNY [6] Performance Metrics - The company’s stock has outperformed the CSI 300 index over 1 month (0.0%), 3 months (20.2%), and 12 months (95.7%) [7] - Revenue and net profit projections for 2025, 2026, and 2027 are 904 million CNY, 1,234 million CNY, and 1,682 million CNY respectively, with corresponding net profits of 157 million CNY, 232 million CNY, and 345 million CNY [10] Revenue Breakdown - The company’s revenue from aviation products is projected to contribute 92% of total revenue in 2024, with a steady increase in gross margin [36][44] - The aviation product revenue for 2024 is expected to be 646 million CNY, with a gross margin of 38.1% [11] Financial Performance - The company has shown a compound annual growth rate (CAGR) of 27.80% in revenue and 44.35% in net profit from 2018 to 2024 [35] - The weighted return on equity (ROE) for 2024 is projected to be 11.64%, indicating a recovery in profitability [55] Strategic Initiatives - The company has implemented a stock incentive plan to motivate talent, with performance targets set for net profit from 2024 to 2026 [60]