AviChina Industry & Technology Co (2357) AI Stock Analysis

• Market Cap: HK$34.20B
• Dividend Yield: 2.28%
• Average Volume (3M): 38.22M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.02
• Revenue Growth: 16.93%
• EPS Growth: -9.02%
• Country: HK
• Employees: 71,847
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.14
• Shares Outstanding: 6,210,662,600
• 10 Day Avg. Volume: 34,400,487
• 30 Day Avg. Volume: 38,222,575
• PEG Ratio: -1.03
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -13.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$4.50 ▲(1.81% Upside)

AviChina Industry & Technology Co's stock score is primarily supported by its strong financial performance, characterized by revenue growth and a solid equity base. However, technical analysis indicates bearish trends, and cash flow challenges pose potential risks. Valuation metrics are moderate, providing some support but not indicating significant undervaluation.

Positive Factors

Revenue Growth Trend

Sustained revenue growth near 17% indicates durable demand for AviChina's products across civil and military segments. Over 2–6 months this reflects strong order momentum and successful commercial execution, supporting long-term scale, R&D funding and market share expansion.

Solid Equity Base / Balance Sheet

A healthy equity ratio and solid shareholders' equity provide financial resilience for capital-intensive aerospace programs. This balance-sheet strength supports multi-year aircraft projects, joint ventures, and capital spending without forcing distressed financing under industry cyclicality.

Diversified Aerospace Revenue Streams

Multiple revenue channels—military and civil aircraft, government contracts, JV partnerships and after‑sales servicing—create durable cash generation and reduce reliance on any single product cycle. Servicing and long-term contracts add stable recurring revenue.

Negative Factors

Negative Free Cash Flow / Cash Conversion

Repeated negative free cash flow signals weakness converting profits into cash, which can constrain funding for capex, R&D and working capital in a capital‑intensive industry. While cash reserves mitigate near-term risk, persistent deficits threaten financial flexibility.

Earnings Per Share Decline

Negative EPS growth reflects underlying profitability pressure or dilution, reducing retained earnings available for reinvestment. Over several months this can limit the company's ability to finance new programs internally and may signal execution or margin challenges.

Profitability Volatility

Declines and variability in gross and net margins point to exposure to cost inflation, program timing and pricing pressure. Margin volatility undermines earnings predictability and complicates long‑term planning for R&D, backlog pricing and capital allocation.

AviChina Industry & Technology Co Business Overview & Revenue Model

Company Description

AviChina Industry & Technology Company Limited engages in the research, development, manufacture, and sale of civil aviation products and related engineering services. It operates through three segments: Aviation Entire Aircraft Business, Aviation Ancillary System and Related Business, and Aviation Engineering Services Business. The company is involved in the development, manufacture, sale, and upgradation of defense and civil aviation products, such as helicopters, trainer and general-purpose aircrafts, and regional jets; and manufacture and sale of aviation ancillary system products, including connectors, avionics products, and its accessories. It also offers component products, including optical and electrical interconnection components and assemblies, cable assemblies, system interconnection equipment, fluid devices and equipment, etc., that are used in aviation, aerospace and other military fields, communications and data transmission, and new energy vehicles, as well as rail civil high-end manufacturing fields, such as transportation, consumer electronics, industry, energy, medical care, and intelligent equipment. In addition, the company provides various aviation power supply systems, fire extinguishing systems, environmental control systems, engine ignition systems and accessories, etc. Further, it offers aviation engineering services, such as planning, design, consultation, construction services. The company was incorporated in 2003 and is based in Beijing, the People's Republic of China. AviChina Industry & Technology Company Limited is a subsidiary of Aviation Industry Corporation of China, Ltd.

How the Company Makes Money

AviChina generates revenue through multiple key streams, primarily by producing and supplying aircraft and components to both domestic and international clients. The company benefits from government contracts related to military aviation, which represent a significant portion of its revenue. Additionally, AviChina engages in joint ventures and partnerships with other aerospace firms and governmental bodies, enhancing its market reach and technological capabilities. The company also earns income from servicing and maintenance contracts for the aircraft it produces, as well as through the sale of aviation-related technologies and equipment. Overall, its diversified portfolio in the aerospace sector, combined with strategic collaborations, plays a crucial role in sustaining its financial performance.

AviChina Industry & Technology Co Financial Statement Overview

Summary

AviChina Industry & Technology Co exhibits a strong financial position with growing revenues and a solid equity base, supported by efficient cost management. However, cash flow challenges present potential risks that require attention. The company's overall financial health is stable, with opportunities for continued growth if cash flow issues are addressed.

Income Statement

The company shows a consistent revenue growth trajectory with a considerable increase from 2019 to 2024. The gross profit margin is strong, indicating efficient cost management, although it slightly declined in 2024 due to a decrease in gross profit. The net profit margin has experienced some fluctuation, reflecting varying profitability. Overall, the company's ability to grow revenue while maintaining profitability is positive.

Balance Sheet

AviChina Industry & Technology has a solid equity base with a healthy equity ratio. The debt-to-equity ratio shows moderate leverage, which is manageable given the industry context. Positive trends in stockholders' equity reflect financial stability and potential for future growth. The company maintains a strong cash position, providing a buffer against liabilities.

Cash Flow

The cash flow situation presents challenges, with negative free cash flows in recent years indicating potential liquidity issues. Despite this, the company held a substantial cash reserve in 2024, which helps mitigate risk. The operating cash flow to net income ratio suggests room for improvement in converting earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.82B	86.97B	84.72B	78.76B	60.30B	50.93B
Gross Profit	17.75B	18.37B	20.82B	18.32B	12.30B	10.06B
EBITDA	7.36B	8.08B	10.27B	9.48B	6.58B	5.28B
Net Income	1.97B	2.19B	2.45B	2.32B	2.37B	1.93B
Balance Sheet
Total Assets	199.53B	202.04B	185.02B	179.12B	133.89B	115.65B
Cash, Cash Equivalents and Short-Term Investments	34.67B	44.63B	40.46B	42.33B	24.98B	25.22B
Total Debt	19.24B	18.49B	25.98B	15.28B	22.97B	21.07B
Total Liabilities	101.79B	105.40B	96.96B	103.60B	79.12B	69.50B
Stockholders Equity	34.34B	34.15B	31.57B	28.12B	26.91B	22.98B
Cash Flow
Free Cash Flow	719.59M	-2.11B	-8.81B	7.17B	-613.23M	-1.53B
Operating Cash Flow	5.16B	2.17B	-4.08B	10.36B	2.24B	860.78M
Investing Cash Flow	-3.94B	-5.37B	-3.61B	-1.61B	-1.94B	2.33B
Financing Cash Flow	2.12B	5.34B	3.55B	3.41B	423.81M	1.19B

AviChina Industry & Technology Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2357, the sentiment is Neutral. The current price of 4.42 is above the 20-day moving average (MA) of 4.31, above the 50-day MA of 4.08, and above the 200-day MA of 4.14, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2357.

AviChina Industry & Technology Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0564	75 Outperform	HK$48.17B	8.49	19.86%	6.05%	2.23%	13.60%
0232	68 Neutral	HK$1.60B	14.10	3.91%	3.60%	20.53%	28.42%
2357	66 Neutral	HK$34.20B	16.12	5.91%	2.28%	16.93%	-9.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0317	53 Neutral	HK$39.54B	23.44	4.69%	1.35%	10.08%	299.38%
1725	49 Neutral	HK$525.54M	-2.19	-98.45%	―	-32.75%	38.59%
0439	47 Neutral	HK$640.32M	-14.94	-1.99%	―	-5.59%	-1071.43%

AviChina Industry & Technology Co Corporate Events

AviChina Expands Airborne Business with Strategic Acquisition

AviChina Industry & Technology Co., Ltd. announced a connected transaction involving its subsidiary, AVIC Airborne, acquiring a 59.1816% partnership interest in AIC Yuhua from AVIC Industry Investment for RMB 202,105,702.57. This acquisition aims to enhance the company’s airborne business chain and strengthen synergies within its operations. The transaction is subject to reporting and announcement requirements under the Listing Rules but is exempt from circular and independent shareholders’ approval requirements.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina Announces Board of Directors and Committee Roles

AviChina Industry & Technology Co., Ltd. has announced the list of its board of directors along with their roles and functions. The board comprises executive directors, non-executive directors, and independent non-executive directors, with Yan Lingxi serving as the Chairman. The announcement also details the membership of various board committees, including the Directors Development and Strategy Committee, Audit and Risk Management Committee, Remuneration Committee, Nomination Committee, and Sustainable Development Committee. This organizational update is crucial for stakeholders as it outlines the leadership structure and governance framework of the company, potentially impacting its strategic direction and operational efficiency.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina Approves Key Governance Changes at EGM

AviChina Industry & Technology Co., Ltd. held an Extraordinary General Meeting (EGM) where all proposed resolutions were approved, including the abolition of the supervisory committee and changes in the board composition. The meeting saw a significant shareholder turnout, with 67.71% of shares carrying voting rights represented. The resolutions included amendments to the rules governing shareholder meetings and the appointment of Mr. Gao Jiming as a non-executive director, highlighting a strategic shift in the company’s governance structure.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina Announces H Share Full Circulation Initiative

AviChina Industry & Technology Co., Ltd. has announced its board’s approval for the conversion of 261,522,000 domestic shares into H shares, representing approximately 3.28% of its total issued shares. This move, part of the company’s H Share Full Circulation initiative, is subject to regulatory approvals and aims to enhance the liquidity of its shares on the Hong Kong Stock Exchange, potentially impacting its market positioning and offering new opportunities for stakeholders.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina Announces Extraordinary Shareholders’ Meeting to Approve Key Resolutions

AviChina Industry & Technology Co. has announced an extraordinary shareholders’ meeting scheduled for December 12, 2025, to discuss and approve several key resolutions. These include proposed amendments to the company’s Rules Governing the Operation of Shareholders’ Meetings and Articles of Association, as well as the appointment of Mr. Gao Jiming as a non-executive Director. The meeting will also consider any resolutions proposed by shareholders holding 1% or more of the company’s shares. The outcomes of these resolutions could significantly impact the company’s governance structure and strategic direction.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina Proposes New Non-Executive Director Appointment

AviChina Industry & Technology Company Limited has announced the proposed appointment of Mr. Gao Jiming as a non-executive director. Mr. Gao, a seasoned engineer with extensive experience in the aerospace industry, has been nominated for the eighth session of the board, pending approval at the company’s shareholders’ meeting. His appointment is expected to enhance the company’s strategic direction and governance, given his background and expertise in aerospace science and industry.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina Announces Extraordinary Shareholders’ Meeting and Register Closure

AviChina Industry & Technology Co., Ltd. has announced the closure of its register of members in preparation for an extraordinary shareholders’ meeting scheduled for December 12, 2025. The meeting will address proposed amendments to the company’s articles of association and the rules governing shareholder meetings. This move is significant for stakeholders as it could impact the company’s governance structure and operational regulations.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.

AviChina’s Subsidiaries Report Strong Q3 2025 Financial Results

AviChina Industry & Technology Co., Ltd. announced the unaudited financial results for the third quarter of 2025 for its subsidiaries AVICOPTER, AVIC Airborne, JONHON, and Hongdu Aviation. The reports, prepared under China Accounting Standards, reveal significant revenues and profits for the subsidiaries, with AVIC Airborne and JONHON showing notable net profits. Investors are advised to exercise caution as these results pertain to the subsidiaries and not the parent company.

The most recent analyst rating on (HK:2357) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on AviChina Industry & Technology Co stock, see the HK:2357 Stock Forecast page.