Avic Hi-Tech(SH:600862) Minsheng Securities·2024-10-20 08:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Insights - The company reported a revenue of 3.821 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 5.5%. The net profit attributable to shareholders was 912 million yuan, up 8.0% year-over-year, and the net profit excluding non-recurring items was 898 million yuan, reflecting a 12.1% increase year-over-year [2]. - The company is positioned as a leader in the aviation carbon fiber prepreg market and is expected to benefit from the accelerated commercialization of domestic aircraft represented by the C919 and the development of the "low-altitude economy" [2]. - The company plans to invest 102 million yuan to establish a subsidiary in Shenzhen, aiming to capitalize on the national strategy for low-altitude economic development and enhance its control over the aviation composite material industry chain [2]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 1.274 billion yuan, a year-over-year increase of 5.3%, and a net profit of 308 million yuan, up 5.2% year-over-year. The net profit excluding non-recurring items was 304 million yuan, showing a significant increase of 16.9% due to a reduction in non-recurring gains [2]. - The gross margin for Q3 2024 improved by 4.1 percentage points to 41.1%, while the net margin decreased by 0.3 percentage points to 24.4% [2]. - The company’s operating cash flow for the first three quarters was 142 million yuan, down from 368 million yuan in the same period last year, primarily due to reduced sales collections and increased tax expenses [2]. Future Projections - The company is projected to achieve net profits of 1.185 billion yuan, 1.436 billion yuan, and 1.736 billion yuan for the years 2024, 2025, and 2026, respectively. The current stock price corresponds to a price-to-earnings ratio (PE) of 27x, 22x, and 18x for the years 2024 to 2026 [2][3].