On November 5, Grong Hui | Soochow research reports pointed out that avic xi’an aircraft industry group (000768.SZ) as an important domestic aircraft manufacturing company, has sufficient orders in hand, with outstanding performance in the third quarter, achieving a total operating income of 0.892 billion yuan, a year-on-year decrease of -4.13%, and a net income attributable to the mother of 0.287 billion yuan, a year-on-year increase of +20.21%. In terms of profitability, on the one hand, the company reduced assets restructuring and streamlined intermediaries, especially reducing related party transactions, thereby reducing costs, increasing gross margin. On the other hand, the company has good expense control and has made structural adjustments in management, especially in optimizing supply chain management and production processes, reducing unnecessary expenses. The company's sales gross margin reached 7.36% in the first three quarters of 2024, an increase of +3.01pct year-on-year, consistently maintaining at a high level. The company's performance meets expectations, considering the company's leading position in the big plane industry, maintaining previous forecasts, with the expected net income attributable to the mother for 2024-2026 being 1.1/1.446/1.757 billion yuan respectively, corresponding to PEs of 73/55/45 times, maintaining a "buy" rating.