Maintain the target price of 71.83 yuan and maintain the increase in holdings. The company benefits from the release of strong demand for fighter jets in the context of military training and preparation. The combined focus is on improving quality and efficiency. Profitability continues to improve, and performance is expected to maintain rapid growth. We will maintain the 2024-26 EPS of 1.43/1.85/2.25 yuan, give the company 52.43 times PE for 24 years, maintain the target price of 71.83 yuan, and maintain the “increase” rating.
The performance was basically in line with expectations, continued to grow, and profits increased steadily. 1) In 24Q1, the company achieved revenue of 94.9 billion yuan (+3.5%), net profit of 720 million yuan (+11.6%), net profit after deduction of 720 million yuan (+12.6%): 2) Profitability continued to increase, gross profit margin increased 0.77pct year on year by 12.1% year on year, net profit margin increased by 7.5%, up 0.58 pct year on year; 3) The company announced on April 24 that Jihang will publicly list and expand its shares to introduce the Aviation Industry Fund and the National Industrial Investment Fund. China Airlines Shen Fei is still holding more than 51% of the shares in the transaction. speed Maintenance capacity building, consolidating the dominant position in the company chain, and providing support for future development.
Continuing to promote high-quality development, performance is expected to maintain rapid growth. 1) China's significant gap in the number and generation of military aircraft compared to the US is expected to drive the fighter industry to continue to grow rapidly: 2) In the future, the company is committed to achieving integrated development of “research, manufacturing, and maintenance”, accelerating capacity building, and optimizing the industrial layout: 3) Along with military pricing mechanism reform, the company's business expansion, product price increase, and management level improvement, profitability is expected to continue to improve, and profits are expected to grow rapidly.
Catalysts: Accelerated development of new equipment brings improved demand, significant strengthening of military aircraft maintenance capabilities, and breakthroughs in design and development capabilities
Risk warning: New models are being released faster than expected, and new business expansion is not as fast as expected.