AVIC AVIONICS(SH:600372) GF SECURITIES·2026-03-31 01:13Investment Rating - The investment rating for the company is "Accumulate" [3] Core Views - The company has demonstrated stable operating performance, with a focus on developing its second growth curve in civil aviation, high-end equipment, and international business [7] - The company achieved a revenue of RMB 24.212 billion in 2025, representing a year-over-year growth of 1.39%, and a net profit attributable to shareholders of RMB 1.067 billion, with a year-over-year increase of 2.56% [7] - The company is expected to benefit from the upward demand in the aviation equipment sector, with a projected EPS of RMB 0.25, RMB 0.30, and RMB 0.39 for 2026, 2027, and 2028 respectively [7] Financial Performance Summary - Revenue and Profitability: - Revenue for 2024 is projected at RMB 23.880 billion, with a decline of 17.7%, followed by a slight increase of 1.4% in 2025 [2] - EBITDA is expected to be RMB 3.248 billion in 2024, with a gradual increase in subsequent years [2] - Net profit attributable to shareholders is forecasted to be RMB 1.041 billion in 2024, with a significant decline of 44.8% [2] - Margins: - The gross margin for 2025 is reported at 28.70%, showing a year-over-year increase of 0.52 percentage points [7] - The net profit margin for 2025 is 5.55%, reflecting a year-over-year increase of 0.55 percentage points [7] - Business Segmentation: - Revenue from aviation products, non-aviation defense, and modern industries accounted for 78%, 5%, and 17% respectively in 2025, with respective year-over-year changes of -3.31%, +36.21%, and +19.03% [7] - The automotive products segment generated revenue of RMB 3.188 billion, with a year-over-year growth of 35.48% [7] Valuation - The reasonable value of the company is estimated at RMB 15.26 per share, based on a PE ratio of 60 times for 2026 [7]