Gelonghui, May 11 | According to Guoxin Securities Research Report, China Aviation Heavy Equipment (600765.SH)'s net profit returned to mother in '23 was 1.33 billion yuan, an increase of 11% over the previous year. Forging and casting products are the company's largest business segment, accounting for more than 75% of revenue since 2021. The company acquired 80% of Hongshan Forging's shares and obtained 500MN large die forging hydraulic equipment owned by Hongshan Forging, which can invest in the production of high-value-added forging orders in a short period of time. In addition, the construction of the company's fund-raising projects continues to advance, and the forging and casting production capacity is steadily expanding. The company is a leading supplier of forgings for high-end equipment in the aviation forging field in China. It has deep cooperation with COMAC and China Commercial Development. It is also a forging supplier for well-known aviation manufacturers such as Boeing, Airbus, Safran, Rollo, GE, ITP, IHI, Mettis, etc. The bank believes that the reasonable valuation range for the company's stock price is 21.6-22.5 yuan, corresponding to the 2024 dynamic PE range of 20.2-21.1 times, which has a 6%-10% premium over the company's current stock price. Covered for the first time, a “gain” rating was given.