HYATECH(SH:688510) AVIC Securities·2024-04-24 09:30Investment Rating - The investment rating for the company is "Buy" with a target price of 27.00 yuan, indicating an expected return of over 10% relative to the CSI 300 index in the next six months [24][34]. Core Insights - The company achieved record-high revenue and profit in 2023, with revenue of 544 million yuan (+49.93%) and net profit of 90 million yuan (+349.61%). The first quarter of 2024 also showed strong performance with revenue of 161 million yuan (+41.76%) and net profit of 32 million yuan (+153.27%) [3][24]. - The international business, particularly in aviation engine components, is growing rapidly, with a projected increase in LEAP engine shipments by 20-25% in 2024, which will drive further revenue growth [27]. - The company is expanding its production capacity and optimizing its product structure, which is expected to enhance profitability and operational efficiency [10][30]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 161 million yuan, a 41.76% increase year-on-year, and a net profit of 32 million yuan, reflecting a 153.27% increase [3]. - For the full year 2023, the company achieved a revenue of 544 million yuan (+49.93%) and a net profit of 90 million yuan (+349.61%), marking the highest figures in the last five years [24][34]. Business Segments - The aviation products segment saw a revenue growth of 50.86%, while the medical products segment grew by 37.18%. The revenue contributions from aviation and medical products were 89.13% and 9.95%, respectively [6]. - The international engine components business generated 270 million yuan in revenue, a 68.27% increase, accounting for 49.67% of total revenue [7]. Operational Efficiency - The company improved its cash flow management, with net cash flow from operating activities reaching 121 million yuan, up from 52 million yuan in the previous year [6]. - The gross margin improved to 35.99% (+6.29 percentage points), and the net margin increased to 16.10% (+10.97 percentage points) due to enhanced production efficiency and product maturity [24][34]. Future Outlook - The company is expected to maintain strong growth, with projected revenues of 713 million yuan, 869 million yuan, and 1.017 billion yuan for 2024, 2025, and 2026, respectively [34]. - The expansion of production capacity and the introduction of new products are anticipated to support sustained revenue growth and profitability [10][30].