ATRO Latest Report

Financial Performance

Astronics' total operating revenue reached Rmb20.854 billion as of December 31, 2024, up 6.44% from Rmb19.529 billion in 2023. Despite positive progress in revenue, the increase in sales costs and management expenses affected overall profitability.

Key Financial Data

1. Operating revenue growth of 6.44% reflects the recovery of market demand and increased product sales.

2. Sales costs increased from Rmb15.532 billion to Rmb15.849 billion, resulting in a relative increase in gross profit that did not fully translate into net profit.

3. Management expenses increased significantly from Rmb3.219 billion to Rmb4.118 billion, indicating increased sales and management inputs.

4. EBIT was -7.867,000 yuan, indicating challenges in cost and expense control.

Industry Comparison

1. Overall industry analysis: The recovery in aerospace and defense sectors has driven revenue growth for related companies, and the demand is expected to continue growing in the next few years, especially in terms of technological innovation and product upgrades.

2. Peer evaluation analysis: Astronics' revenue growth rate is slightly lower than the industry average, although revenue has grown, the high management expenses and sales costs have resulted in poor net profit performance, indicating that the contradiction between revenue growth and cost control still needs to be resolved.

Summary

Astronics' total operating revenue growth in 2024 shows the improvement in market demand, but the increase in sales costs and management expenses limits the improvement in net profit. The company needs to optimize cost and expense control to better enhance profitability.

Opportunities

1. Backlog reached US$599 million, indicating strong growth potential in the future.

2. Strong sales performance in the aerospace sector, especially in high-demand markets, reflects the company's competitiveness in the aerospace industry.

3. The overall industry is favorable, and technological innovation and new product launches may bring more revenue growth opportunities for the company.

Risks

1. The increase in sales and management expenses puts pressure on short-term financial performance and affects profitability.

2. The impact of the Boeing strike on orders may lead to short-term revenue instability.

3. The increase in legal and patent-related expenses may have a negative impact on financial status in the short term.