Avic Hi-Tech(SH:600862) Minsheng Securities·2024-03-15 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a revenue of 4.78 billion yuan in 2023, a year-on-year increase of 7.5%, and a net profit attributable to shareholders of 1.03 billion yuan, up 34.9% year-on-year [1][2]. - The company is positioned as a leader in aviation carbon fiber prepreg materials and is expected to benefit from the rapid development of the industry, particularly with the commercialization of domestic large aircraft and the government's focus on "low-altitude economy" [1][2]. - The forecasted net profits for 2024, 2025, and 2026 are 1.185 billion yuan, 1.435 billion yuan, and 1.735 billion yuan respectively, with corresponding PE ratios of 23x, 19x, and 16x [1][2]. Financial Performance - In Q4 2023, the company achieved a revenue of 1.16 billion yuan, a year-on-year increase of 6.9%, and a net profit of 190 million yuan, up 99.8% year-on-year [1]. - The gross margin for Q4 2023 increased by 10.0 percentage points to 34.6%, while the net margin rose by 7.2 percentage points to 16.3% [1]. - The company's new materials business generated 4.62 billion yuan in revenue, accounting for 97% of total revenue, with a gross margin increase of 5.92 percentage points to 36.8% [1]. Cost Management and R&D - The company maintained a low expense ratio, with a total operating expense ratio of 11.2%, an increase of 1.0 percentage points year-on-year [1]. - R&D expenses increased by 7.5% to 180 million yuan, while the R&D expense ratio decreased by 0.2 percentage points to 3.7% [1]. Market Outlook - The report highlights the growth potential in the aviation new materials sector, driven by increased demand from the domestic large aircraft market and government initiatives [1][2]. - The company is expected to leverage its position in the supply chain to capture more market opportunities as the industry evolves [1].