Changjiang Securities: AVICHM's profitability remains basically stable, with sufficient orders on hand and ample production capacity

Changjiang Securities research report points out that AVICHM achieved stable quarter-on-quarter growth in the first quarter, which may indicate a recovery in downstream demand. Under the pressure of tax reform policies and price adjustments, the company's profitability remains basically stable. The sufficient orders on hand in Q1 2025 lay a good foundation for achieving annual operational goals. As of the end of March, the company had a sufficient cumulative backlog of orders, among which the backlog of commercial engineering orders increased by 42.39% compared to the same period last year. In April, the company's subsidiaries Hongyuan Company, Anda Company, and Jinghang Company signed an order worth 1.707 billion with a certain client. The ample backlog of orders, combined with abundant production capacity, highlights the advantages of supply-demand synergy. At the same time, the company relies on six major regional coordination centers and seven IPT teams specializing in forging, ring forging, airborne, civil aviation, civilian products, bidding rates for forgings, and aerospace projects, continuously increasing market development efforts. Significant results have been achieved in forging, ring forging, and airborne projects, realizing the iterative transformation from old models to new models, continuously empowering the company's medium- to long-term development, and shifting the product structure towards high-value fields