AVIC XAC(SZ:000768) Minsheng Securities·2024-04-02 16:00Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Views - The company achieved a revenue of 40.3 billion yuan in 2023, representing a year-on-year growth of 7%. The net profit attributable to shareholders was 0.86 billion yuan, up 64.4% year-on-year, while the net profit excluding non-recurring items reached 0.81 billion yuan, reflecting a 93.6% increase year-on-year [2][3]. - The fourth quarter of 2023 saw a significant revenue increase of 28%, with a quarterly revenue of 11.89 billion yuan, and a turnaround in net profit to 0.06 billion yuan from a loss of 0.13 billion yuan in the same quarter of the previous year [2][3]. - The company is focusing on its core business and improving efficiency, which has led to an increase in the number of aviation products delivered compared to the previous year [2][3]. Financial Performance Summary - The company reported a gross margin of 6.9% for the year, a decrease of 0.18 percentage points year-on-year, while the net margin improved by 0.75 percentage points to 2.1% [2][3]. - The operating expenses ratio for 2023 was 3.4%, down 0.62 percentage points year-on-year, with a sales expense ratio of 1.2%, a management expense ratio of 2.3%, and a research and development expense ratio of 0.6% [2][3]. - The company expects a 22% increase in related procurement for 2024, indicating a positive outlook for downstream demand [3][4]. Future Projections - The revenue target for 2024 is set at 45.1 billion yuan, representing a 12% increase from the actual revenue in 2023 [3][4]. - The projected net profit for 2024 is 1.23 billion yuan, with further increases expected in subsequent years, reaching 2.05 billion yuan by 2026 [3][4].