AVIC SAC(600760) 民生证券·2024-04-30 10:02Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company achieved a revenue of 9.49 billion yuan in Q1 2024, representing a year-on-year increase of 3.5%, and a net profit attributable to shareholders of 720 million yuan, up 11.6% year-on-year [1]. - The company expects to achieve a revenue of 51.03 billion yuan in 2024, a year-on-year growth of 10.3%, and a net profit of 3.76 billion yuan, reflecting a 25% increase year-on-year [2]. - The company is focusing on enhancing its maintenance capabilities through strategic partnerships, which is expected to benefit from the growing demand in the defense equipment sector [2]. Summary by Sections Financial Performance - In Q1 2024, the gross margin was 12.1%, an increase of 0.77 percentage points year-on-year, and the net margin was 7.5%, up 0.58 percentage points year-on-year [1]. - The company reported a decrease in R&D expenses by 28.3% year-on-year to 110 million yuan [1]. - The net cash flow from operating activities was -7.27 billion yuan, significantly lower than -410 million yuan in the same period last year [1]. Future Projections - The company forecasts a net profit of 3.78 billion yuan for 2024, with subsequent projections of 4.65 billion yuan in 2025 and 5.67 billion yuan in 2026, indicating a growth rate of 25.8% and 22.9% respectively [3]. - The projected PE ratios for 2024, 2025, and 2026 are 28x, 23x, and 19x respectively [3]. Strategic Developments - The company is enhancing its lifecycle support system for aviation equipment, which is expected to accelerate growth in the maintenance market [2]. - A recent capital increase agreement with Ji Hang Company aims to strengthen the company's maintenance capabilities and extend its industry chain [2].