JungleJackpotRush| Aviation Industry Corporation of China: Fujitec's revenue in Q1 in 2024 will increase by 7.92%, and it is expected that the revenue growth rate from 2024 to 2026 will reach 13.1%-22.4% year-on-year

Newsletter summary

The high-frequency connector supplier of Aviation Industry Corporation of China released its annual report for 2023 and quarterly report for 2024. The results are under short-term pressure but are expected to be repaired quarterly. The company is widely used in both military and civil tracks, and its cooperation with Huawei has deepened. It is expected that revenue and net profit will continue to grow from 2024 to 2026. The current PE is lower than the industry average, and for the first time it has been given an "overweight" rating. Risks include changes in downstream demand, etc.

Text of news flash

[China Aviation Industry Corporation supplier performance is under pressure in 2023 and quarterly profit repair is expected in 2024]

According to the latest disclosure,JungleJackpotRushAccording to the financial report, the high-frequency connector suppliers of the Aviation Industry Corporation of China achieved an operating income of 8% in 2023.JungleJackpotRush.15 billion yuan, a slight increase of 0% over the same period last year.JungleJackpotRush.82%; the net profit of returning to the mother reached 146 million yuan, an increase of 2.34% over the same period last year; the net profit of deducting non-returning to the mother was 133 million yuan, a slight increase of 0.35% over the same period last year.

Although the volatility of performance in 2023 is limited, the performance of different business areas is divergent. The business revenue of RF coaxial connectors increased by 8.81% compared with the same period last year, while the revenue of RF coaxial cable assemblies decreased by 7.23% year-on-year, while other revenues increased by 31.89%.

In the first quarter of 2024, the company's operating income rose 7.92% year-on-year to 192 million yuan; however, the return net profit fell 68.42% year-on-year to 13 million yuan; non-return net profit also decreased 71.91% year-on-year to 12 million yuan. According toJungleJackpotRushIt is understood that the slowdown in growth in the first quarter is mainly due to the slow pace of military production, but the growth of civilian products is still strong. It is expected that the decline in profits will be gradually repaired in the follow-up to 2024.

Radio frequency coaxial connector products have a broad application prospect in both military and civilian tracks. In the military aspect, driven by the national policy, the aerospace and aviation market is developing rapidly, and the company has gained a leading advantage in the low-orbit satellite industry. In the civil aspect, with the rapid development of China's communications industry, especially telecom operators to increase investment in 5G, the commercial value of RF connectors has become increasingly prominent.

As the main supplier of Huawei, the company has outstanding performance in terms of product advantages and profitability. Under the trend of domestic substitution, the company shows significant alternative potential and is expected to deepen its cooperation with Huawei and further promote business development.

In terms of profit forecast, Fujitsu's operating income from 2024 to 2026 is expected to be 9.22 shock 11.28 / 1.381 billion yuan, with a year-on-year growth rate of 13.1% 22.3% and 22.4%, respectively, and its net profit is expected to be 1.49pm 1.92 / 228 million yuan, respectively, and its earnings per share (EPS) are 0.80pm 1.02x1.21 yuan respectively. According to the closing price on May 10, 2024, the price-to-earnings ratio (PE) for 2024-2026 is 18.60, 14.47, 12.18, respectively. Fujitsu's PE in 2024 is significantly lower than the industry average, and its valuation is expected to improve further given its potential in the field of RF coaxial connectors. As a result, Fujida was given an "overweight" rating for the first time.

However, the company also faces certain risks, including changes in downstream industry demand, technology upgrading, high customer concentration, large amount of accounts receivable and operating cash flow fluctuations. Investors should fully consider these risk factors when making investment decisions.

Tags:

Prev: bet365poker| What is the development trend of financing platform companies?
Next: phlbosscom| Brand achievements are recognized! Sunshine Insurance was selected as Brand Finance's "2024 Top 500 Brand Value in China"