GLONGHUI, September 13 | UBS published a report saying that China Aviation Electronics, a subsidiary of China Aviation Science and Technology, completed the restructuring and merger of China Aviation Mechatronics in June. Management believes that the merger will help integrate resources, reduce internal costs, and increase revenue and profit margins. The injection of assets into the helicopter business will also help reduce management costs and improve operating efficiency. It is expected that the asset injection will be completed by the end of the year. According to the report, the company's revenue and profit for the first half of the year were better than market expectations. Among the three major businesses, aviation assistance systems contributed more than 75% of net profit, mainly benefiting from the expansion of production facilities. Management believes that the aviation business has bottomed out this year. Asset injection in the helicopter business will drive strong growth next year, and it is also expected that the company's orders will recover in the fourth quarter of this year. The bank raised the company's earnings per share forecast for the three-year period from this year to 2025 by 10%, 18% and 20%, respectively. The target price was raised from HK$6.4 to HK$6.5, and the “buy” rating was raised.