以"退城进园"为抓手，应流集团投资15.7亿元新建智能化生产线，其中环保投入超亿元，充分彰显绿色 发展的决心。 在地处大别山腹地安徽省六安市霍山县的安徽应流集团智能化车间里，机械手平稳运转，精密加工着航 空发动机叶片。这家从山区小厂起步的企业，如今已成长为国家级专精特新"小巨人"企业，成为革命老 区崛起的高端制造优秀代表。 应流集团的成功蜕变，是六安市推动传统产业转型升级、聚焦科技创新、发展高端制造业的生动缩影。 从生产简单铸件起步，逐步迈向高端部件、核能材料和航空科技三大主业，应流集团走出一条绿色与创 新协同并进的发展道路，近年来业务一直保持增长趋势，其中80%源于绿色能源装备业务。 围绕国家高水平科技自立自强战略，聚焦核电、航天航空、燃气轮机等重点领域，应流集团投入研发资 金10.4亿元，开展28项产学研合作，与16家高校院所协同攻关，成功突破多项关键技术。其120—600千 瓦级混合动力系统已完成测试与试飞，部分产品投入应用，标志着其具备完整大功率混合动力系统设计 生产能力。 "环境保护是企业必须承担的社会责任。"应流集团有关负责人蒲伟表示，公司作为集团实施价值链延伸 战略、实现产业高端化发展的平台，着 ...

Investment Rating - The report maintains a "Buy" rating for the company [1][11][39] Core Views - The company's net profit attributable to shareholders saw a significant year-on-year increase in Q2 2025, driven by robust order growth in the gas turbine sector and ongoing projects in nuclear energy [6][7][11] - The company has secured over 2 billion yuan in new orders in the first half of 2025, reflecting a year-on-year growth of over 35%, with total revenue reaching 1.384 billion yuan, up 9.11% year-on-year [6][11] - The company is well-positioned for sustained growth, with a strong order backlog and a favorable outlook for the two-machine industry chain [11] Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 721 million yuan, a year-on-year increase of 19.05% and a quarter-on-quarter increase of 8.82%. The net profit attributable to shareholders was 96 million yuan, up 56.75% year-on-year [7] - For the first half of 2025, the company reported a net profit of 188 million yuan, a year-on-year increase of 23.91%, with a return on equity (ROE) of 3.98% [6][11] Order Growth and Industry Position - The company has established strategic partnerships with major players such as Siemens Energy and GE Aviation, securing a stable supply of components for gas turbines and expanding its product offerings in the aerospace sector [8][9] - In the nuclear energy sector, the company has signed multiple contracts for product supply, benefiting from government approvals for new nuclear power units [10] Future Projections - Revenue projections for 2025-2027 are estimated at 2.946 billion yuan, 3.610 billion yuan, and 4.441 billion yuan respectively, with net profits expected to reach 405 million yuan, 531 million yuan, and 710 million yuan [11][13]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company achieved a revenue of 1.384 billion yuan in H1 2025, representing a year-on-year increase of 9.11%, and a net profit attributable to shareholders of 188 million yuan, up 23.91% year-on-year [1] - The company has secured over 1.5 billion yuan in orders for its two-machine business, with significant progress in partnerships with major global clients [3] - The nuclear power business is experiencing an upswing, with multiple contracts signed for nuclear power projects [4] - The low-altitude economy segment is advancing with a focus on engine and aircraft integration, targeting high-altitude and cold-weather markets [5] - Profit forecasts for 2025-2027 project net profits of 420 million, 574 million, and 801 million yuan respectively [5] Financial Data Summary - Revenue for 2023 is projected at 2.412 billion yuan, with a growth rate of 9.75% [11] - The net profit attributable to shareholders for 2025 is estimated at 419.51 million yuan, reflecting a growth rate of 46.49% [12] - The company’s EBITDA for 2025 is expected to be 849.74 million yuan [11] - The earnings per share (EPS) for 2025 is projected to be 0.62 yuan [12] - The price-to-earnings (P/E) ratio for 2025 is estimated at 45.26 [12]

Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][22]. Core Insights - The company achieved a year-on-year revenue growth of 56.8% in Q2, reflecting a strong performance and continued optimism regarding its strategic positioning in four new productivity directions [1]. - The company is focusing on four major areas: aviation engines, gas turbines, nuclear energy new materials, and low-altitude economy, which are considered future strategic productivity drivers [6]. Financial Performance Summary - **Revenue Forecast**: Projected total revenue for 2024 is 2,513 million, increasing to 2,943 million in 2025, 3,504 million in 2026, and 4,808 million in 2027, with respective growth rates of 4.2%, 17.1%, 19.1%, and 37.2% [2][12]. - **Net Profit Forecast**: Expected net profit for 2024 is 286 million, rising to 401 million in 2025, 529 million in 2026, and 736 million in 2027, with growth rates of -5.6%, 39.9%, 32.1%, and 39.0% respectively [2][12]. - **Earnings Per Share (EPS)**: EPS is projected to be 0.42 yuan in 2024, increasing to 0.59 yuan in 2025, 0.78 yuan in 2026, and 1.08 yuan in 2027 [2][12]. - **Valuation Ratios**: The price-to-earnings (P/E) ratio is expected to decrease from 64 in 2024 to 25 in 2027, while the price-to-book (P/B) ratio is projected to decline from 3.9 to 3.1 over the same period [2][12]. Business Segment Performance - **High-Temperature Alloy and Precision Casting**: Revenue reached 8.42 billion, with a year-on-year growth of 6.41% and a gross margin of 38.42% [6]. - **Nuclear Power and Large Casting Products**: Generated 3.26 billion in revenue, up 5.57% year-on-year, with a gross margin of 34.59% [6]. - **New Materials and Equipment**: Achieved a revenue of 1.46 billion, marking a significant growth of 74.49% year-on-year, with a gross margin of 31.94% [6]. Strategic Developments - The company has deepened collaborations in the aviation engine sector with major clients like GE Aviation and China Commercial Aircraft Corporation, leading to substantial order volumes [6]. - In the gas turbine segment, the company has become the sole supplier of certain components for Siemens Energy in China, indicating a strong market position [6]. - The nuclear energy business is benefiting from stable approvals for new units, with the company making advancements in new product development [6]. - The low-altitude economy segment is expected to reach a profitability turning point, with ongoing developments in drone technology and airport operations [6].

Investment Rating - The report suggests a positive outlook for the machinery sector, particularly highlighting specific companies for investment opportunities [13]. Core Insights - The engineering machinery sector shows short-term fluctuations in operating rates but maintains a long-term recovery logic driven by domestic demand [7][25]. - The new shipbuilding prices have stabilized and are showing signs of recovery, indicating an upward trend in industry sentiment [7][46]. - The gas turbine sector is experiencing robust growth, with significant increases in orders and production expected [7][55]. Market Review - The SW Machinery Equipment Index increased by 0.26% over the past week, ranking 24th among 31 primary industry categories [3][16]. - Year-to-date, the SW Machinery Equipment Index has risen by 8.29%, ranking 7th among the same categories [3][18]. Key Data Tracking General Machinery - The general machinery sector continues to face pressure, with the manufacturing PMI at 49.7%, indicating contraction [24]. Engineering Machinery - The operating rate for major engineering machinery products was 56.9% in June, down 7.55% year-on-year [7][25]. - The average working hours for these products were 77.2 hours, reflecting a decline of 9.11% year-on-year [7][25]. Shipbuilding - The global new ship price index reached 187.11 in June, marking a 0.22% increase, the first rise since February [7][46]. Oilfield Equipment - The global rig count has stabilized at over 1,600 units, indicating a bottoming out of demand in the oilfield equipment sector [48]. Gas Turbines - The gas turbine sector is on a steady upward trajectory, with GEV's new orders increasing by 44.9% in Q1 2025 [55][56]. Industry Dynamics - The report emphasizes the importance of monitoring the recovery trends in various segments, including engineering machinery, shipbuilding, and gas turbines, as they present potential investment opportunities [7][55].

Investment Rating - The investment rating for the company is "Buy" (首次) [5] Core Viewpoints - The company is a leading manufacturer of high-end casting components, benefiting from trends in AIDC, aerospace technology, and nuclear fusion industries [1][9] - The company has established a complete high-end component production system and is a key member of the high-end equipment manufacturing industry chain in China [18][19] - The company plans to issue 1.5 billion convertible bonds to enhance its production capabilities in turbine blade processing and advanced nuclear materials [9][33] Summary by Relevant Sections Business Overview - The company focuses on aviation engines and gas turbine products, benefiting from the demand for domestic large aircraft and AIDC [18] - The company has a strong presence in the high-end parts, aerospace technology, and advanced materials sectors, serving various high-end equipment fields [18][22] Financial Summary - In 2024, the company expects revenue of 2,513 million yuan, a year-on-year increase of 4.2%, and a net profit of 286 million yuan, a year-on-year decrease of 5.6% [4][25] - The company's sales gross margin is projected to be 34.2%, with a net margin of 10% for 2024 [27][28] Gas Turbine Sector - The global gas turbine market is estimated to be 28.14 billion USD in 2024, with a compound annual growth rate (CAGR) of 7.4% from 2025 to 2034 [46] - The company is recognized as a domestic leader in gas turbine blades, with a significant increase in orders, achieving a 102.8% year-on-year growth in 2024 [2][61] Aerospace Sector - The global aerospace engine market was approximately 113.97 billion USD in 2023, expected to reach 151.20 billion USD by 2030, with a CAGR of 4.12% [67] - The company is positioned to benefit from the doubling of global aircraft numbers over the next 20 years, as predicted by Airbus [68] Nuclear Power Sector - The nuclear power industry is expected to grow, with a projected CAGR of 8.4% for installed capacity from 2023 to 2035 [3] - The company has established joint ventures to engage in nuclear fusion materials and components, enhancing its position in the nuclear energy sector [3][9]

Summary of Key Points Core Viewpoint - The aviation engine industry in China is primarily dominated by a few key players, with a significant focus on innovation, research and development, and market expansion to enhance their competitive edge in both military and civilian sectors [1][18]. Group 1: Industry Overview - The aviation engine manufacturing segment includes four main types: turbojet, turbofan, turboshaft, and turboprop engines, largely monopolized by the China Aviation Engine Group [1]. - Key companies in the industry include Aviation Power (航发动力), Aviation Technology (航发科技), and Aviation Control (航发控制), among others [1][3]. Group 2: Company Performance - Aviation Power reported a revenue of 449.94 billion yuan in 2024, leading the industry in terms of revenue [16]. - The average gross margin for listed companies in the aviation engine sector is around 25%, with individual margins ranging from 10% to 35% [16]. - Aviation Control achieved a gross margin of 28.11% in 2024, reflecting its strong technological innovation capabilities [16]. Group 3: Business Layout and Market Position - Aviation Power and Aviation Technology have over 50% of their business focused on aviation engines, indicating a strong commitment to this sector [13]. - The regional distribution of companies shows that titanium alloy leaders are mainly located in Shaanxi, while other material representatives are concentrated in the East China region [5]. Group 4: Future Business Plans - Companies are focusing on innovation and R&D investments to expand their aviation engine business, with plans to enhance their capabilities in high-temperature alloy components and precision casting [19]. - Aviation Technology aims to participate in the development of the C919 aircraft's engines and expand its international subcontracting business [19]. Group 5: Key Financial Metrics - The largest revenue-generating company in the aluminum and high-strength steel sector is China Aluminum, with a revenue of 2370.66 billion yuan [4]. - The revenue of Aviation Power in the aviation engine sector is projected to exceed 400 billion yuan in 2024, highlighting its market leadership [4]. Group 6: Patent and Employee Information - China Aluminum and Aviation Power hold over 1000 patents, indicating a strong focus on innovation [8]. - Southern Airlines has the largest employee count among listed companies, exceeding 100,000 [8].

Industry Overview - The aviation engine industry is crucial for national economy and security, serving as the power source for various aircraft and representing a country's comprehensive strength [1] - Aviation engines can be categorized into several types based on thrust generation principles and oxidizer sources, including piston engines, rocket engines, ramjet engines, and turbine engines [1] Industry Chain Analysis - The aviation engine industry chain includes research and design, manufacturing (raw materials, components, complete machine manufacturing), operation, and maintenance [3] - China has established a complete research and production system for aviation engines, with key participants including universities and research institutes [4] Development History - The Chinese aviation engine industry has evolved from imitation to independent research and development, achieving significant self-innovation capabilities supported by national policies [5][8] Policy Background - The "14th Five-Year Plan" emphasizes accelerating the research and development of advanced aviation engine materials and technologies, promoting the development of civil large bypass ratio turbofan engines [10] Current Market Status - The aviation engine industry has vast market potential, with a global annual output of over 14,000 units and an estimated annual value of around $70 billion [12] - The Chinese commercial aviation engine market is expected to experience explosive growth, with projected deliveries reaching 19,000 units and a market value exceeding $300 billion over the next 20 years [12] Demand Trends - Both military and civil aviation sectors in China are witnessing an upward trend in aircraft numbers, with the military fleet expected to reach 3,309 aircraft by the end of 2024 [14] - The number of civil passenger and cargo aircraft in China has also been increasing, with approximately 4,400 aircraft expected in 2024 [15] Competitive Landscape - The aviation engine market is primarily dominated by foreign manufacturers, with significant gaps in capabilities compared to the US, Russia, and other military powers [17][19] - The global commercial aviation engine market is largely controlled by a few companies, with CFM International and Pratt & Whitney holding substantial market shares [20] Future Development Trends - The Chinese aviation engine manufacturing industry is expected to focus on independent innovation, quality improvement, international cooperation, and sustainable development [24]