AVIC XAC(SZ:000768) Minsheng Securities·2024-04-30 04:30Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company reported a revenue of 8.46 billion yuan in Q1 2024, representing a year-on-year increase of 6.5%. The net profit attributable to shareholders was 270 million yuan, up 15.7% year-on-year, while the net profit excluding non-recurring items grew by 24.5% year-on-year to 280 million yuan [2]. - The company has improved its profit margins and cost control, with a gross margin of 8.0% (up 0.53 percentage points year-on-year) and a net margin of 3.2% (up 0.26 percentage points year-on-year) in Q1 2024 [2]. - The company expects a 22% increase in related procurement for 2024, driven by new orders for the C919 aircraft, which includes an additional 100 units ordered by China National Airlines [2]. Financial Performance Summary - In Q1 2024, the company achieved a revenue of 8.46 billion yuan, completing 19% of its annual target of 45.1 billion yuan [2]. - The company’s Q1 2024 operating expenses ratio was 3.2%, a decrease of 0.06 percentage points year-on-year, with specific changes in expense categories: sales expense ratio increased to 1.1%, management expense ratio decreased to 2.6%, and R&D expense ratio remained stable at 0.3% [2]. - The company’s cash flow from operating activities was -9.14 billion yuan in Q1 2024, compared to -6.79 billion yuan in the same period last year, primarily due to increased prepayments for procurement [2]. Future Outlook - The company forecasts net profits for 2024, 2025, and 2026 to be 1.236 billion yuan, 1.585 billion yuan, and 2.046 billion yuan respectively, with corresponding price-to-earnings ratios of 51x, 39x, and 31x [2][3]. - The report emphasizes the company's focus on enhancing its core business and improving product quality, which is expected to contribute to steady performance growth in the future [2].