AVIC I.F(SH:600705) KAIYUAN SECURITIES·2024-04-22 14:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company's total revenue and net profit for 2023 were CNY 1.694 billion and CNY 290 million, respectively, representing a year-on-year decline of 6.7% and 82.8% [2] - The leasing subsidiary showed relative stability, while the trust and securities subsidiaries experienced significant profit declines, and the investment performance of the headquarters was under pressure [2] - Due to the underperformance of the trust and securities businesses, the profit forecast for 2024-2025 has been revised down to CNY 1.2 billion and CNY 100 million, respectively, with a new forecast for 2026 set at CNY 1.8 billion [2] - The company is positioned as a financial holding platform under the Aviation Industry Group, benefiting from investment advantages in the military-industrial sector [2] Financial Summary - In 2023, the revenue and net profit of the leasing subsidiary were CNY 1.084 billion and CNY 195 million, with a year-on-year change of -0.4% and -3.8%, respectively [2] - The trust subsidiary reported revenue and net profit of CNY 180 million and CNY 8 million, reflecting a year-on-year decline of 40% and 90% [2] - The securities subsidiary's revenue and net profit were CNY 166 million and CNY 8 million, down 20% and 86% year-on-year [2] - The company’s total assets were CNY 506.5 billion in 2023, with a projected increase to CNY 517.8 billion in 2024 [7] Valuation Metrics - The current stock price is CNY 2.96, with a market capitalization of CNY 26.122 billion [6] - The price-to-book (P/B) ratio for 2024-2026 is projected to be 0.6 [2] - The earnings per share (EPS) for 2024-2026 are forecasted at CNY 0.1, CNY 0.2, and CNY 0.2, respectively [2]