AECC AEC(SZ:000738) Tianfeng Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential upside of over 20% within six months [3][12]. Core Views - The company achieved a revenue of 5.32 billion yuan in 2023, representing a year-on-year growth of 7.74%. The net profit attributable to shareholders was 726.58 million yuan, up 5.55% year-on-year [1][2]. - The main business of aviation engines and gas turbine control systems generated 4.69 billion yuan in revenue, accounting for 88.17% of total revenue, with a year-on-year increase of 10.06% [1]. - International cooperation business revenue reached 349 million yuan, a significant increase of 47.04% year-on-year, indicating accelerated development in international collaboration [1]. - The company is positioned as a core supplier in the aviation engine control system industry, benefiting from strong demand in both upstream and downstream sectors [1]. Financial Performance Summary - In 2023, the gross profit margin was 27.46%, slightly down by 0.30 percentage points year-on-year, while the net profit margin was 13.71%, also down by 0.30 percentage points [1][8]. - The company’s operating expenses ratio was 10.95%, a decrease of 1.25 percentage points year-on-year, indicating improved cost management [1]. - The forecasted net profits for 2024, 2025, and 2026 are expected to be 836.44 million yuan, 1.00 billion yuan, and 1.22 billion yuan respectively, with corresponding P/E ratios of 27.08, 22.54, and 18.51 [2][6]. Business Outlook - The company anticipates continued growth in associated transactions, with the expected total for 2024 being no more than 4.80 billion yuan, an increase of 11.78% from 2023 [1]. - The aviation industry is expected to remain robust, with a recovery trend in the international civil aviation market, which will positively impact the company's operations [1].