Avic Hi-Tech(SH:600862) Minsheng Securities·2024-04-26 02:30Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a revenue of 1.32 billion yuan in Q1 2024, representing a year-over-year increase of 5.2%. The net profit attributable to shareholders was 350 million yuan, up 4.9% year-over-year, and the net profit excluding non-recurring items was also 350 million yuan, reflecting a 7.8% increase year-over-year. The performance aligns with market expectations [2]. - The aviation new materials business showed steady growth, with revenue of 1.31 billion yuan in Q1 2024, a year-over-year increase of 5.05%. The net profit attributable to shareholders from this segment was 360 million yuan, up 4.95%, driven by increased deliveries of aviation composite materials [2]. - The company’s gross margin increased by 0.7 percentage points to 41.2%, and the net profit margin rose by 0.4 percentage points to 26.9%, indicating stable profitability [2]. - Operating cash flow improved, with a net cash flow from operating activities of 250 million yuan, a year-over-year increase of 23.9% [2]. - The company plays a leading role in the aviation composite materials industry, being the only specialized supplier in China engaged in the research and engineering of composite materials for aviation [2]. - The report forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 1.185 billion yuan, 1.435 billion yuan, and 1.736 billion yuan, respectively, with corresponding price-to-earnings ratios of 22x, 18x, and 15x [2]. Summary by Sections Financial Performance - Q1 2024 revenue was 1.32 billion yuan, up 5.2% YoY; net profit was 350 million yuan, up 4.9% YoY; net profit excluding non-recurring items was also 350 million yuan, up 7.8% YoY [2]. - The gross margin increased to 41.2%, and the net profit margin rose to 26.9% [2]. - Operating cash flow was 250 million yuan, reflecting a 23.9% increase YoY [2]. Business Segments - Aviation new materials segment revenue was 1.31 billion yuan, up 5.05% YoY; net profit was 360 million yuan, up 4.95% YoY [2]. - Equipment segment revenue decreased to 368.11 thousand yuan, down 46.88% YoY, with a net loss of 875.51 thousand yuan [2]. Industry Position - The company is recognized as a leader in the aviation composite materials sector, contributing to significant projects like AG600 and C929 [2]. - The report highlights the company's strategic position in the supply chain of aviation carbon fiber prepreg materials, benefiting from the growth of the domestic aviation market [2].