AVIC AVIONICS(SH:600372) Soochow Securities·2025-11-04 06:29Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved total revenue of 16.774 billion yuan in the first three quarters of 2025, a year-on-year increase of 1.25%, while the net profit attributable to shareholders was 990 million yuan, a year-on-year decrease of 17.73% [8] - The decline in profit is primarily attributed to a reduction in non-recurring gains and losses, as well as an increase in credit impairment losses, which reached 171 million yuan, a year-on-year increase of 139.89% [8] - Despite the slight revenue increase, the gross profit margin improved to 27.94%, indicating progress in product structure optimization or cost control [8] - The company has maintained a strong focus on core technology, with R&D expenses reaching 1.574 billion yuan, a year-on-year increase of 14.50% [8] - The asset-liability ratio stood at 50.63%, reflecting a moderate increase in leverage, while short-term borrowing pressures have increased [8] Financial Summary - The company forecasts net profits attributable to shareholders of 1.152 billion yuan, 1.337 billion yuan, and 1.580 billion yuan for 2025, 2026, and 2027 respectively, corresponding to P/E ratios of 51, 44, and 37 times [8] - The report indicates that the company's operating cash flow for the first three quarters of 2025 was -1.377 billion yuan, although this represents a significant improvement of 62.29% year-on-year [8] - The company’s total assets are projected to reach 91.387 billion yuan by 2026, with a steady focus on capacity expansion [9]