Hunan Aerospace Huanyu (688523) 民生证券·2024-04-30 05:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company reported a significant revenue increase of 72% year-on-year in Q1 2024, driven by growth in aerospace and large aircraft business [1]. - The company has a strong position in the aerospace sector, benefiting from the accelerating demand for aviation equipment and satellite internet [1]. - The forecasted net profit for 2024-2026 is adjusted to 188 million, 261 million, and 364 million respectively, with corresponding PE ratios of 45x, 33x, and 23x [1]. Financial Performance Summary - In 2023, the company achieved a revenue of 460 million, a year-on-year increase of 13.7%, and a net profit of 130 million, up 9.6% [1]. - The gross margin for 2023 was 51.2%, down 8.66 percentage points year-on-year, while the net margin was 30.3%, down 1.65 percentage points [1]. - For Q1 2024, the gross margin decreased to 36.0%, a decline of 23.38 percentage points year-on-year, and the net margin was 10.3%, down 10.50 percentage points [1]. Business Development - The subsidiary, Feiyu Company, won a major order for the C929 project worth up to 175 million [1]. - The company has completed the design and manufacturing of key tooling for various aircraft models, positioning itself to benefit from the booming large aircraft industry [1]. Research and Development - The company increased its R&D investment, with R&D expenses reaching 50 million in 2023, a year-on-year growth of 6.6% [1]. - The R&D expense ratio for 2023 was 10.5%, a decrease of 0.70 percentage points year-on-year [1].