AVICOPTER(SH:600038) Minsheng Securities·2024-03-16 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company achieved a revenue of 23.33 billion yuan in 2023, representing a year-over-year increase of 19.8%. The net profit attributable to shareholders was 440 million yuan, up 14.1% year-over-year [2][3]. - The fourth quarter saw a decline in performance, with Q4 2023 revenue at 7.58 billion yuan, down 14.5% year-over-year, and net profit at 150 million yuan, down 55.8% year-over-year [2][3]. - The company is focusing on the low-altitude economy, which is expected to provide new growth opportunities, especially as it is a leading player in the domestic helicopter manufacturing industry [2][3]. Financial Performance Summary - The company’s 2023 revenue was 23.33 billion yuan, with a gross margin of 10.1%, a decrease of 0.16 percentage points year-over-year. The net margin was 1.5%, down 0.50 percentage points year-over-year [2][3]. - R&D expenses increased by 47% year-over-year to 750 million yuan, indicating a strong commitment to innovation [2][3]. - The company’s cash flow improved significantly due to increased customer payments, with net cash flow from operating activities reaching 720 million yuan, compared to a negative 1.69 billion yuan in the previous year [2][3]. Future Projections - The company is projected to achieve net profits of 535 million yuan, 660 million yuan, and 827 million yuan for 2024, 2025, and 2026, respectively [2][3]. - The current stock price corresponds to a price-to-earnings ratio (PE) of 43x for 2024, 35x for 2025, and 28x for 2026 [2][3].