AVICHM(SH:600765) GF SECURITIES·2024-03-17 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 27.37 CNY per share, indicating an expected performance that exceeds the market by 5% to 15% over the next 12 months [4][10]. Core Insights - The company announced its 2023 annual report, achieving a revenue of 10.577 billion CNY, a slight increase of 0.07% year-on-year, and a net profit attributable to shareholders of 1.329 billion CNY, representing a year-on-year growth of 10.70% [2][3]. - Excluding the impact of subsidiary consolidation and VAT policy changes, the revenue growth for 2023 was 12.77% year-on-year. The net profit margin reached a historical high of 13.21% for the year [2][3]. - The company has made significant progress in its aviation business, with a steady increase in market share and the initial establishment of large forging production capabilities. It has initiated 50 large forging projects, with 6 successfully completing process validation trials [2][3]. - The company has set ambitious revenue and profit targets for 2024, forecasting revenues of 11.9 billion CNY and total profits of 1.86 billion CNY, representing year-on-year growth of 12.51% and 15.86%, respectively [2][3]. Financial Summary - For 2023, the company reported a revenue of 10.577 billion CNY, with a year-on-year growth rate of 0.1%. The EBITDA was 1.974 billion CNY, and the net profit attributable to shareholders was 1.329 billion CNY, reflecting a growth rate of 10.7% [3][6]. - The earnings per share (EPS) for 2023 was 0.90 CNY, with projections for 2024, 2025, and 2026 to be 1.07 CNY, 1.29 CNY, and 1.59 CNY, respectively [3][6]. - The company’s return on equity (ROE) for 2023 was 11.6%, with expectations to rise to 12.4% in 2024 [3][7].