AVIC XAC(SZ:000768) Soochow Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in net profit attributable to shareholders, up 64.41% year-on-year, with total revenue reaching 40.301 billion yuan, a 7.01% increase from the previous year [2][3] - The company has initiated a stock incentive plan to motivate key personnel and enhance performance, which is expected to drive sustained growth [3] - As the sole main manufacturer of large aircraft in the full spectrum, the company plays a crucial role in China's military and civil aviation sectors, with a strong order backlog for the C919 aircraft [3] Financial Performance Summary - Total revenue for 2023 was 40,301 million yuan, with a year-on-year growth of 7.01%. The fourth quarter of 2023 saw revenue of 11,888 million yuan, a 27.63% increase year-on-year [2][3] - The net profit attributable to shareholders for 2023 was 860.97 million yuan, reflecting a 64.41% increase compared to the previous year [2][3] - The gross profit margin for 2023 was 6.87%, slightly down from the previous year, while the net profit margin improved to 2.14% [2][3] - The company has implemented cost reduction and efficiency improvement measures, leading to a decrease in overall expense ratios [2][3] Earnings Forecast and Valuation - The company’s earnings forecasts for 2024 and 2025 have been slightly adjusted to 1,151.62 million yuan and 1,513.27 million yuan respectively, with a new forecast for 2026 at 1,847.77 million yuan [3] - Corresponding P/E ratios for the forecasted years are 51.60 for 2024, 39.26 for 2025, and 32.16 for 2026 [2][3]