AVIC XAC(000768) 中泰证券·2024-08-20 01:39Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company is positioned as a leading manufacturer of military and civilian large and medium-sized aircraft in China, benefiting from increasing demand and the implementation of equity incentives that drive high-quality growth [2][3]. - The company has a significant strategic position in the military aircraft sector, with core platforms undergoing series development and military trade opening up long-term opportunities [3][4]. - The domestic civil aircraft sector is also poised for growth, with the company being a key supplier for major projects like the C919, which is expected to ramp up production significantly by 2030 [3][4]. Summary by Sections Company Overview - The company is a comprehensive base for the research, design, production, and maintenance of large and medium-sized military and civilian aircraft, backed by AVIC (Aviation Industry Corporation of China) [9][11]. - It has undergone significant restructuring and resource integration to focus on complete aircraft manufacturing and component production [9][11]. Financial Analysis - The company has shown steady revenue growth, with a projected revenue of 460.82 billion, 527.22 billion, and 605.32 billion yuan for 2024, 2025, and 2026 respectively [4][13]. - The net profit is expected to reach 10.82 billion, 13.49 billion, and 16.69 billion yuan for the same years, indicating a strong recovery and growth trajectory [4][13]. Military Aircraft Business - The company holds a monopoly in the manufacturing of large and medium-sized military transport and bomber aircraft, with platforms like the Y-20 and H-6 being central to its operations [3][18]. - The military transport aircraft segment is crucial for strategic deployment capabilities, with ongoing developments in platforms like the Y-20 and Y-9E [3][18]. Civil Aircraft Business - The company is a core supplier for the C919, ARJ21, and AG600 aircraft, with significant responsibilities in the production of major components [3][4]. - The C919 is expected to achieve a delivery capacity of 100 aircraft per year by 2030, marking a significant milestone for the domestic aviation industry [3][4]. International Outsourcing - The company has established deep partnerships with Boeing and Airbus, focusing on creating a world-class wing manufacturing center, which is expected to contribute positively to its revenue [3][4].