AVIC SAC(600760) 国金证券·2025-01-18 09:00Investment Rating - The report maintains a "Buy" rating for AVIC Shenyang Aircraft Corporation (600760.SH) [1] Core Views - AVIC Shenyang is a key player in China's aerospace defense equipment sector, with the J-35 series expected to drive new growth [2][3] - The company has demonstrated steady revenue growth from 19.459 billion RMB in 2017 to 46.248 billion RMB in 2023, with a CAGR of 15.5%, and net profit growth from 710 million RMB to 3.01 billion RMB, with a CAGR of 27.3% [1][21] Summary by Sections Company Overview - AVIC Shenyang has over 70 years of experience in aerospace defense, transitioning from aircraft repair to the development of advanced fighter jets [1][2] - The company has a complete model spectrum from first-generation to fourth-generation aircraft, which enhances its competitive advantage [2][15] Investment Logic - The company is positioned to benefit from the dual prosperity of air and naval forces, with the J-15 family and J-16 significantly enhancing China's military capabilities [2][19] - The J-35 series is anticipated to enter a harvest phase, with new aircraft and drones aligning with future combat trends, providing long-term growth potential [2][31] Profit Forecast, Valuation, and Rating - Revenue projections for 2024, 2025, and 2026 are 40.748 billion RMB, 49.660 billion RMB, and 57.373 billion RMB, respectively, with corresponding net profits of 3.103 billion RMB, 4.067 billion RMB, and 5.022 billion RMB [4][8] - The target price is set at 59.03 RMB, based on a 40x PE valuation for 2025, reflecting the company's unique position in China's aerospace sector [4][8]