Aecc Aero-Engine Control Co.,Ltd.
000738.SZ · SHZ
Company research
Aecc Aero-Engine Control Co., Ltd. (000738.SZ) is a Wuxi, China-based Aerospace & Defense company listed on the Shenzhen Stock Exchange, specializing in the development, production, repair, sale, and service of aero-engine and gas turbine control systems for both military and civil markets in China and internationally. As a direct subsidiary of Aero Engine Corporation of China (AECC) — a state-owned enterprise under the State Council's SASAC — the company serves as one of China's nationally designated core enterprises for aero-engine control systems, and is one of AECC's top three listed platforms. Beyond its core aviation business, the company supplies civil aviation precision parts such as rocker arms, flight control components, and fuel system slide valves, while also offering diversified control system derivatives including high-end electro-hydraulic actuators for ground combat vehicles, high-precision solenoid valves, and sensors for electro-hydraulic control systems. Founded in 1997 and formerly known as AVIC Aero-Engine Controls Co., Ltd., the company rebranded to its current name in April 2017 and employs approximately 7,174 staff, with a market capitalization of approximately CNY 23.2 billion.
Research reports
Report finds 2025 revenue fell 5.64% and net profit dropped 55.43% as price/tax reforms, product price adjustments and higher spending on emerging aviation businesses compressed margins, even as operating cash flow improved sharply to 9.44亿元, far above net profit. It reiterates the company’s role as a leading aero-engine and gas-turbine control-system supplier, forecasting resumed growth from 2026 with a 28元 target price under an “增持” rating, while highlighting risks from weaker downstream demand, underperforming international subcontracting and delays in project construction.
民生证券 · August 28, 2025航发控制（000738.SZ）2025年半年报点评：1H25营收完成年度目标52%；国际合作业务保持增长Report notes that 1H25 revenue declined 2.5% year-on-year to 27.4亿元 and net profit fell 34.3% to 3.1亿元 due mainly to VAT reform and margin pressure, but stresses that revenue has already reached 51.6% of the full-year 53亿元 plan and that aero-engine and gas-turbine control systems still contribute about 89% of sales. It emphasizes the firm’s strong “两机” control-system franchise, visible improvement in operating cash flow (1H25经营净现金流约10.1亿元) and 12% growth in international cooperation revenue, maintaining a “推荐” rating with forecasts for accelerating earnings as new engine models and maintenance ramp, while warning that weaker downstream demand and product price volatility could constrain performance.