AECC AP(SH:600893) Soochow Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Buy" [1][3] Core Views - The company achieved a total revenue of 43.734 billion yuan in 2023, representing a year-on-year growth of 17.89%, and a net profit attributable to shareholders of 1.421 billion yuan, up 12.17% year-on-year [2][3] - The growth in performance is driven by increased demand in the aviation engine and gas turbine markets, with the aviation engine and derivatives business generating revenue of 40.893 billion yuan, a year-on-year increase of 18.17% [2][3] - The completion of investment projects has enhanced the company's aviation engine repair capabilities, contributing positively to the overall service capacity in the aviation engine sector [2][3] Financial Forecasts - The company’s projected total revenue for 2024 is 48.524 billion yuan, with a net profit forecast of 1.615 billion yuan, and for 2025, the revenue is expected to reach 56.624 billion yuan with a net profit of 1.998 billion yuan [1][6] - The earnings per share (EPS) are projected to be 0.61 yuan for 2024 and 0.75 yuan for 2025, with a price-to-earnings (P/E) ratio of 56.05 and 45.31 respectively [1][6] - The company’s net profit for 2026 is estimated at 2.554 billion yuan, corresponding to a P/E ratio of 35.45 [1][3] Market Position and Strategy - The company is positioned as a leader in the domestic aviation engine sector, benefiting from both military and civilian demand, as well as the ongoing push for domestic production capabilities [2][3] - The expansion of the downstream market is supported by the increasing number of military aircraft and the growing orders for domestic commercial aircraft, such as the C919 [2][3]