AVIC AVIONICS(SH:600372) Orient Securities·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 11.61 CNY [3][5]. Core Views - The company reported a revenue of 29.007 billion CNY in 2023, representing a year-on-year increase of 4.63%, and a net profit attributable to shareholders of 1.886 billion CNY, up 39.62% [2]. - The company has improved its profitability, with a net profit margin rising to 7.41% and a gross margin of 29.73% in 2023, attributed to increased R&D investments [2]. - For 2024, the company expects a slight decline in revenue to 28.522 billion CNY (-1.67%), but anticipates a profit increase of 8% to 2.437 billion CNY [2]. - The completion of the merger with AVIC Electromechanical has positioned the company for a new growth phase, enhancing its capabilities in airborne systems [2]. Financial Summary - The company achieved a revenue of 29,007 million CNY in 2023, with a year-on-year growth of 4.6% [4]. - The net profit attributable to shareholders for 2023 was 1,886 million CNY, reflecting a 39.6% increase compared to the previous year [4]. - The projected revenues for 2024 and 2025 are 29,079 million CNY and 32,092 million CNY, respectively, with expected growth rates of 0.2% and 10.4% [4]. - The gross margin for 2023 was reported at 29.7%, with a projected increase to 30.0% in 2024 [4]. - The net profit margin is expected to improve from 6.5% in 2023 to 7.1% in 2024 [4].