Avic Hi-Tech(SH:600862) EBSCN·2024-03-17 16:00Investment Rating - The report maintains a "Buy" rating for the company, considering its strong position in the domestic aerospace composite materials sector and the potential for performance improvement due to new military aircraft production and the trend of domestic material substitution [3]. Core Insights - The company reported a revenue of 4.78 billion yuan in 2023, a year-on-year increase of 7.50%, and a total profit of 1.213 billion yuan, reflecting a growth of 35.75% compared to the previous year [2]. - The aerospace composite materials business saw a revenue increase of 7.20% to 4.671 billion yuan, driven by sales growth in raw materials and brake products [2]. - The company achieved 97.54% of its revenue target and exceeded its profit target by 3.15% in 2023 [2]. - The fourth quarter of 2023 showed a revenue of 1.157 billion yuan, up 6.90% year-on-year, with a net profit of 187 million yuan, marking a significant increase of 98.39% [2]. Summary by Sections Revenue and Profit Performance - The company achieved a total revenue of 4.78 billion yuan in 2023, with a profit of 1.213 billion yuan, indicating a strong performance in its core business [2][3]. - The revenue growth rate for 2023 was 7.50%, while the profit growth rate was 35.75% [4]. Business Segments - The aerospace new materials segment generated 4.671 billion yuan in revenue, a 7.20% increase, and a net profit of 1.097 billion yuan, up 33.20% [2]. - The equipment business reported a revenue of 66.18 million yuan, down 21.52%, but reduced its net loss significantly by 285.08 million yuan [2]. Innovation and Market Demand - The company is increasing investment in independent innovation and technology to enhance research and development in new materials and high-end equipment [2]. - The domestic aerospace market is rapidly growing, with significant demand for composite materials, especially following the delivery of multiple C919 large passenger aircraft by COMAC [2]. Financial Forecasts - The forecast for the company's net profit for 2024 and 2025 has been adjusted downwards by 12.43% and 12.48% to 1.095 billion yuan and 1.316 billion yuan, respectively [3]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.79 yuan, 0.94 yuan, and 1.12 yuan, respectively [3].