AVICHM(SH:600765) SINOLINK SECURITIES·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for the company, with expected growth in net profit for 2024-2026 at 18%, 20%, and 20% respectively, corresponding to a PE ratio of 14, 12, and 10 times [2]. Core Insights - The company is projected to achieve a revenue of 26.5 billion in Q1 2024, reflecting a year-on-year increase of 13.1%, and a net profit of 3.2 billion, up 17.9% year-on-year [1]. - The company is focusing on enhancing its market share in high-end equipment, with significant growth in commercial aircraft and foreign trade businesses, particularly a robust 96.4% year-on-year increase in foreign trade revenue [1]. - The company has set a revenue target of 119 billion for 2024, representing a 12.5% increase year-on-year, and a profit target of 18.6 billion, which is a 15.9% increase year-on-year [1]. - The company is extending its business vertically into high-temperature alloy and titanium alloy recycling, as well as downstream machining operations, aiming to become a comprehensive supplier of aviation infrastructure components [1]. Summary by Relevant Sections Performance Review - The company reported a Q1 2024 revenue of 26.5 billion, a 13.1% increase year-on-year, and a net profit of 3.2 billion, up 17.9% year-on-year [1]. - The foreign trade business saw a significant revenue increase of 2.64 billion, marking a 96.4% year-on-year growth [1]. Financial Projections - Expected net profits for 2024, 2025, and 2026 are 15.7 billion, 18.8 billion, and 22.7 billion respectively, with growth rates of 18%, 20%, and 20% [2]. - The company aims for a revenue target of 119 billion in 2024, with a profit target of 18.6 billion [1]. Business Strategy - The company is enhancing its supply chain management and production efficiency through material procurement, lean production projects, and technological innovations [1]. - The establishment of a subsidiary to manage the development of high-temperature alloy and titanium alloy recycling indicates a strategic move towards vertical integration [1].