AVICHM(SH:600765) Changjiang Securities·2024-03-19 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - In 2023, the company achieved revenue of 10.577 billion, a year-on-year increase of 0.07%, and a net profit attributable to shareholders of 1.329 billion, up 10.7% year-on-year [5][6] - The company is expected to see a revenue growth of 12.51% in 2024, reaching 11.9 billion, with a profit total growth of 15.86%, amounting to 1.86 billion [6][5] - The company has made significant investments in R&D, with R&D expenses increasing by 52.3% to 661 million, indicating a focus on new product development [5][6] Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 2.609 billion, a decrease of 8.49% year-on-year but an increase of 5.91% quarter-on-quarter [5] - The gross profit margin for 2023 was 31.28%, an increase of 2.04 percentage points year-on-year, attributed to cost-saving measures and efficiency improvements [5][6] Business Segments - The forging and casting business generated revenue of 8.561 billion, up 6.22% year-on-year, while the hydraulic and environmental control business achieved revenue of 2.017 billion, a 1.54% increase [5] - The company successfully acquired 80% of Hongshan Company, enhancing its capacity with a 50,000-ton super-large forging press, which is expected to contribute significantly to revenue growth in 2024 [5][6] Inventory and Contracts - The company's inventory balance remained high at 3.721 billion, a year-on-year increase of 12.2%, with inventory products increasing by 27% [6] - Contract liabilities at the end of 2023 reached 710 million, a year-on-year increase of 17.8%, indicating strong downstream demand [6] Future Outlook - The company is focusing on expanding its production capacity and enhancing its integrated delivery capabilities, with capital expenditures increasing significantly in Q3 and Q4 of 2023 [6] - The strategic layout in material R&D and the management of Qinghai Juneng Titanium Industry Co., Ltd. are expected to bolster the company's market position [6]