Description of the event

On October 26, the company released its 2023 three-quarter report, disclosing that the company achieved operating income of 692 million yuan in the first three quarters, an increase of 16.24% over the previous year, and realized net profit of 114 million yuan, an increase of 6.72% over the previous year.

Significant improvements in operations in the third quarter

According to the “October 29, 2023 Investor Relations Activity Record Form” issued by the company on October 29, 2023, it is disclosed that the company is currently focusing on developing high-thrust, supersonic engines. It is expected that the first engine will be designed and finalized next year. In the past, the company mainly relied on external procurement for its power part. At this stage, the company believes that solving the power problem can bring not only cost advantages, but also technological integration advantages.

From the perspective of the development of product demand, products sold in 2020 were mainly medium to low speed, and demand for subsonic products increased dramatically this year. It may develop at a higher speed in the future, and the company has also been making corresponding technical reserves in this regard. In the future, with the release of customer demand, some new models will be introduced to the market one after another.

Investment advice

The company's net profit from 2023-2025 is estimated to be 298 million yuan, 4.14 billion yuan, and 540 million yuan respectively, with year-on-year growth rates of 38.2%, 39.1%, and 30.5%. The corresponding PE is 19.39, 13.94, and 10.68 times, respectively.

Maintain a “buy” rating.

Risk warning

R&D falls short of expectations, and downstream demand falls short of expectations