AviChina Industry & Technology Co (2357) AI Stock Analysis

• Market Cap: HK$31.17B
• Dividend Yield: 2.25%
• Average Volume (3M): 38.22M
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.01
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$4.50 ▲(16.58% 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

Consistent revenue growth indicates strong demand for AviChina's products and services, enhancing its market position and long-term financial stability.

Market Position

Serving both military and civilian markets diversifies AviChina's revenue streams and reduces dependency on a single market segment, strengthening its competitive position.

Strategic Partnerships

Strategic partnerships enhance AviChina's technological capabilities and market reach, fostering innovation and long-term growth potential.

Negative Factors

Cash Flow Challenges

Persistent cash flow challenges could hinder AviChina's ability to invest in growth opportunities and manage financial obligations, impacting long-term sustainability.

Profit Margin Fluctuation

Fluctuating profit margins suggest potential volatility in profitability, which could affect AviChina's ability to sustain long-term earnings growth.

Gross Profit Margin Decline

A decline in gross profit margin could indicate rising costs or pricing pressures, potentially impacting AviChina's future profitability and competitive edge.

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: 3.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 3.86 is below the 20-day moving average (MA) of 3.92, below the 50-day MA of 3.99, and below the 200-day MA of 4.11, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 43.82 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$43.60B	7.72	19.86%	6.16%	2.23%	13.60%
0232	68 Neutral	HK$1.37B	11.39	3.91%	3.40%	20.53%	28.42%
2357	66 Neutral	HK$31.17B	14.50	5.91%	2.25%	16.93%	-9.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0317	61 Neutral	HK$32.78B	20.30	4.69%	1.32%	10.08%	299.38%
0439	47 Neutral	HK$769.62M	-18.90	-1.99%	―	-5.59%	-1071.43%
1725	41 Neutral	HK$483.26M	-1.90	-98.45%	―	-32.75%	38.59%

AviChina Industry & Technology Co Corporate Events

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.

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.

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.

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.

AviChina Subsidiary Director Receives Regulatory Warning

AviChina Industry & Technology Co., Ltd. announced that Ms. Kang Yinglei, a director and supervisor of its subsidiary Jiangxi Hongdu Aviation Industry Co., Ltd., received a warning letter from the Jiangxi Regulatory Bureau of the China Securities Regulatory Commission for purchasing shares in violation of securities management rules. The company confirmed that this incident will not impact its normal operations, and Ms. Kang will turn over any future proceeds from the sale of the shares to Hongdu Aviation and enhance her understanding of securities laws to prevent future violations.