AECC AP(600893) 东吴证券·2024-11-01 21:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of 25.956 billion yuan for the first three quarters of 2024, a year-on-year decrease of 1.33%, and a net profit attributable to shareholders of 726 million yuan, down 29.56% year-on-year [1] - Financial and sales expenses have increased, putting pressure on the company's performance, with financial expenses rising by 125.36% year-on-year to 299 million yuan and sales expenses increasing by 18.62% year-on-year to 439 million yuan [1][2] - Despite the pressure on performance in the third quarter, downstream demand remains strong, driven by both military and civilian markets, with a stable growth trend observed [3] Financial Performance - The company’s total revenue for 2022 was 37.097 billion yuan, with projections of 43.734 billion yuan for 2023, 48.524 billion yuan for 2024, 56.624 billion yuan for 2025, and 64.724 billion yuan for 2026, reflecting a compound annual growth rate [1] - The net profit attributable to shareholders is projected to grow from 1.267 billion yuan in 2022 to 2.554 billion yuan in 2026, indicating a robust growth trajectory [1] - The earnings per share (EPS) is expected to increase from 0.48 yuan in 2022 to 0.96 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 91.50 to 45.41 over the same period [1] Market Demand and Growth Potential - The company has seen a significant increase in inventory, reaching a historical high of 40.227 billion yuan, indicating a strong production backlog and sustained demand from downstream customers [3] - The growth in contract liabilities, inventory, and prepayments suggests robust demand for the company's products, with expectations of steady revenue growth as production ramps up [3] - The company is expected to benefit from the maturation of special aviation engine production models and the transition of research models into mass production, which will support performance growth [3]