AVICOPTER(600038) 广发证券·2024-03-13 16:00Investment Rating - The report assigns a rating of "Buy" for the company [1]. Core Views - The company is a leading manufacturer of helicopters in China, with a comprehensive product line that includes both military and civilian applications. The integration of helicopter assets into the A-share market is expected to enhance its operational capabilities and market position. The company is actively pursuing domestic substitution in the civilian helicopter sector, evidenced by a recent contract for 22 AC series helicopters [1]. - Key investment logic includes: (1) The company is a leader in helicopter manufacturing with a complete product range from 1 ton to 13 tons; (2) There is significant growth potential in both military and civilian sectors, driven by equipment upgrades and supportive low-altitude economic policies; (3) The asset restructuring will facilitate the overall listing of helicopter business in A-shares, with plans to raise up to 3 billion yuan to enhance production and maintenance capabilities [1]. Financial Forecast and Investment Recommendation - The company is projected to have an EPS of 0.75, 1.06, and 1.39 yuan per share for the years 2023, 2024, and 2025 respectively. Given the strong demand in the military and civilian markets, along with recent order recoveries, the company is expected to see a performance rebound. A PE valuation of 45 times for 2024 suggests a reasonable value of 47.77 yuan per share, supporting the "Buy" rating [1]. Company Overview - The company is the largest and most comprehensive helicopter manufacturer in China, with a product line that includes helicopter components, civilian helicopters, and general aviation aircraft. It has developed a robust system and integration solution for various clients [8]. - The company has undergone significant restructuring, including the absorption of helicopter assembly assets, which has led to a more integrated and independent business model [19]. Market Space - The company is well-positioned to benefit from the growing demand in both military and civilian markets, particularly with the rise of low-altitude economic policies that support the development of the helicopter industry [1][19]. Operational Performance - The company experienced a decline in performance in 2022 due to order adjustments, but there are signs of recovery in 2023, with significant year-on-year growth in revenue and net profit [19][21]. Business Structure - The company operates under the control of the Aviation Industry Corporation of China, with four main divisions responsible for various helicopter models and components [13][14]. Financial Data - The company reported revenues of 21.79 billion yuan in 2021, which decreased to 19.47 billion yuan in 2022, but is expected to rebound to 22.19 billion yuan in 2023 [2]. Employee Structure - The company has a strong focus on technical and production personnel, with over 80% of its workforce dedicated to these areas, ensuring a robust talent pool for ongoing and future projects [26].