Avic Hi-Tech(600862) 国元证券·2024-09-12 00:08Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 18.30 yuan [4] Core Views - The company achieved revenue of 2.547 billion yuan in the first half of 2024, a year-on-year increase of 5.58%, and net profit attributable to the parent company of 604 million yuan, a year-on-year increase of 9.47% [1] - The aviation new materials business contributed 2.518 billion yuan in revenue, a year-on-year increase of 6.12%, driven by increased deliveries of prepreg and carbon brake products [1] - The company's gross margin and net margin improved to 37.25% and 23.98% respectively in the first half of 2024, reflecting enhanced profitability [3] Business Performance - The aviation advanced manufacturing technology industrialization business experienced a 37.6% decline in revenue to 15.7349 million yuan, mainly due to decreased sales of ordinary machine tools and special equipment [1] - The aviation industrial composite materials subsidiary achieved revenue of 2.401 billion yuan, a year-on-year increase of 3.82%, and net profit of 618 million yuan, a year-on-year increase of 6.04% [2] - Youcai Baimu, a subsidiary, saw a significant increase in revenue and net profit, with revenue reaching 117 million yuan, a year-on-year increase of 105.68%, and net profit of 14.5038 million yuan, a year-on-year increase of 17.9438 million yuan [2] Financial Metrics - The company's period expense ratio decreased to 8.56% in the first half of 2024, down by 1.48 percentage points year-on-year, with reductions in management, financial, and R&D expense ratios [3] - The company's ROE improved to 16.70% in 2024E, with a projected increase to 18.15% by 2026E [7] - The company's P/E ratio is expected to decrease from 21.78 in 2024E to 15.03 in 2026E, indicating potential undervaluation [7] Future Outlook - The company is constructing a new advanced prepreg production line, which is expected to significantly increase prepreg production capacity upon completion [4] - The company's revenue is projected to grow from 52.1374 billion yuan in 2024E to 73.7019 billion yuan in 2026E, with net profit attributable to the parent company expected to increase from 1.18811 billion yuan in 2024E to 1.72188 billion yuan in 2026E [7] - The company's EPS is forecasted to rise from 0.85 yuan in 2024E to 1.24 yuan in 2026E, reflecting strong growth potential [7]