AECC AP(600893) Soochow Securities·2024-09-02 23:40Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company reported a revenue of 18.548 billion yuan in the first half of 2024, representing a year-on-year growth of 4.35%, while the net profit attributable to the parent company decreased by 17.99% due to a significant reduction in investment income [2][3] - The company is the only domestic entity capable of developing a full range of military aviation engines, thus holding a unique position in the domestic military aviation market [2][3] - Continuous optimization of management efficiency has led to stable profitability, although there is a need for further improvement in profit margins [2][3] Financial Forecast and Valuation - The company is expected to achieve net profits of 1.615 billion yuan, 1.998 billion yuan, and 2.554 billion yuan for the years 2024, 2025, and 2026 respectively, corresponding to P/E ratios of 59, 47, and 37 times [3][6] - The total revenue forecast for the company is projected to be 48.524 billion yuan, 56.624 billion yuan, and 64.724 billion yuan for the years 2024, 2025, and 2026 respectively, with growth rates of 10.95%, 16.69%, and 14.30% [6] Operational Insights - The company has maintained stable profitability across its subsidiaries, with some experiencing significant fluctuations, such as a 72.11% decline in profits for one subsidiary and a 317.56% increase for another, indicating potential performance turning points [2][3] - The company has applied for 213 invention patents and has been granted 154 patents, with 152 being invention patents, showcasing its commitment to technological innovation [2][3]