Avicopter Plc (AVICOPTER) (600038)

Equity Research Report　|　Industry: Defense & Military-Related—Aerospace Equipment (Helicopter Airframes)　|　Report date: September 13, 2026　|　As of the September 11, 2026 close (latest common trading date across sources). Technical indicators and fund flows are as of September 11, 2026; margin financing and securities lending and major-investor fund flows are for September 11 only; shareholder-structure data is no earlier than September 30, 2025, is materially lagged, and may have changed.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Following its 2024 major asset restructuring, Avicopter injected 100% of the equity interests in Changhe Aircraft Industries Group and Harbin Aircraft Industries Group into the listed company, making it the sole listed platform for helicopter airframes within the Aviation Industry Corporation of China (“AVIC”) system. In the first half of 2026, the company generated revenue of RMB 9.007 billion, down 12.05% year on year; net profit attributable to shareholders was RMB 188 million, down 33.58%; and recurring net profit attributable to shareholders was RMB 141 million, down 31.48%. The company attributed the results mainly to weaker-than-expected orders and lower deliveries, indicating that operating performance remains materially affected by the delivery schedule of end customers.

The company is primarily engaged in aerospace products. In 1H26, aerospace-product revenue was RMB 8.877 billion, or 98.56% of total revenue. Aerospace-product gross margin was 9.33% in 2025, versus an overall gross margin of 9.22%. Raw materials and purchased components accounted for 99.15% of principal operating costs, indicating strong barriers in airframe platforms, product families and systems integration, but limited room for cost compression and limited bargaining power with both key upstream component suppliers and specific downstream customers. Revenue declined 2.28% in 2025, while attributable net profit increased 17.27%, mainly due to lower expenses and higher government grants; the gross margin of the core business did not improve.

Medium- to long-term growth opportunities mainly include the integration of helicopter-airframe assets, civilian helicopter products such as the AC332, the heavy-lift eVTOL AR-E800, UAV and low-altitude-economy initiatives, and C919/C929 aerospace subcontracting. The AC332 has completed certification flight tests and signed international market development and operations cooperation agreements. The AR-E800 has completed final assembly and delivery of multiple aircraft and entered testing and flight-test activities. The company has also adjusted its use of proceeds, adding projects involving a certain aircraft’s supply chain, a multipurpose export helicopter and a large civil helicopter medical-rescue configuration. However, the contribution of these businesses to revenue and profit still needs to be validated through subsequent orders, deliveries and mass production.

As of September 11, 2026, the share price closed at RMB 28.04. Static P/E was approximately 35.27x, trailing P/E approximately 41.27x, and dynamic P/E 61.30x, which had risen because of the recent decline in earnings. P/B was approximately 1.31x. Technically, the share price was above the MA5, MA10 and MA20, indicating a relatively strong short-term moving-average pattern, but remained below the chip-cost average of RMB 30.42–30.47. Major-investor funds continued to record net outflows, while trading volume had not expanded materially, suggesting that the market remains cautious in pricing earnings volatility and order execution.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Helicopter airframe and component manufacturing (the largest, highest-output and most comprehensive helicopter manufacturer in China)
• General aircraft (Y-12/Y-12F series)
• Aerospace subcontracting (one of the core suppliers for the domestic C919 large aircraft; participating in C929 supporting R&D and undertaking the C929 outer-flap work package)
• Customized services
• New-energy aircraft (electric vertical take-off and landing aircraft, or eVTOL; heavy-lift eVTOL AR-E800 has completed final assembly and delivery of multiple aircraft and entered testing and flight testing; AC332 has completed certification and all engineering tests; AC352 search-and-rescue configuration is undergoing adjusted flight testing)

2.3 Position in the Upstream and Downstream Chain and Cost/Profit Structure

Avicopter is China’s specialized listed helicopter-airframe manufacturer. Following the 2024 major restructuring, it became the sole/leading listed helicopter-airframe platform within the AVIC system. Its businesses cover helicopter airframes and components, general aircraft, aerospace subcontracting and customized services, and extend to eVTOLs. Key upstream components—especially engines and airborne systems—and downstream customers are both highly concentrated. The company is therefore largely a price taker on the cost side and has almost no bargaining power on the sales side. Gross margin has remained in the 9%–13% range and declined continuously over the past three years.

• Cost structure (2025 annual report): “Raw materials and purchased components” represented 99.15% of principal operating costs of RMB 26.404 billion, or RMB 26.180 billion, up 0.01% year on year; “other” represented 0.85%. Costs are therefore almost entirely purchased raw materials and components, while labor and manufacturing costs account for a very small disclosed proportion. Source: 2025 annual report, corrected version.
• Inputs used in the company’s products, inferred from the annual report’s “raw materials and purchased components” category and business descriptions, include aerospace materials such as aluminum alloys, titanium alloys and composites; aero engines and transmission systems; avionics and airborne systems; rotors and dynamic components; and other purchased components. These are mainly supplied by internal AVIC entities or other defense-related suppliers.
• Supplier concentration: The restructuring financial-adviser reports by CICC and China Aviation Securities expressly state that the target companies, Harbin Aircraft Industries Group and Changhe Aircraft Industries Group, had “relatively high customer and supplier concentration,” which they considered consistent with industry characteristics. Specific percentages for the top five suppliers were not obtained and remain an evidence gap requiring verification against the annual report or restructuring report.
• Bargaining-power assessment, based on business descriptions rather than a directly disclosed annual-report conclusion: as an airframe final-assembly entity within the AVIC system, the company is generally a cost taker with respect to core components such as engines and airborne systems; as the sole/leading helicopter-airframe platform in the group, however, it has an exclusive supply position with certain downstream customers.
• Customers are extremely concentrated and primarily related parties. Historically, the top five customers accounted for RMB 20.291 billion, or 93.12% of 2021 sales; related-party sales were RMB 19.352 billion, or 88.81%. In 2022, the top five customers accounted for RMB 17.8 billion, or 91.75%, while related-party sales were RMB 17.697 billion, or 90.88%. The top five customers accounted for approximately 94.4% of 2023 sales. The latest verifiable figure is for 2023; specific top-five-customer percentages for 2024 and 2025 were not obtained and should be supplemented from the original annual reports. Any citation should state that these figures are based on 2021–2023 disclosures.
• Restructuring target Harbin Aircraft Industries Group: the top five customers accounted for 99.58% in 2021, 99.41% in 2022 and 99.88% in January–August 2023. Sales to a single customer exceeded 50% of revenue for the relevant period; this customer was a specified end user of helicopter-airframe products and was not a related party. The other top-five customers were AVIC subsidiaries and related parties.
• Restructuring target Changhe Aircraft Industries Group: similarly, sales to the top five customers represented a high proportion, and sales to a single customer exceeded 50% of revenue for the relevant period.
• Structural bargaining dynamics: this is not the automotive-components model of a Tier-1 supplier facing annual price reductions from an OEM. It is a military-airframe/specified-customer model involving military or government demand. Demand is highly concentrated and pricing is determined through orders and delivery schedules. The company has almost no commercial bargaining power with end customers, while revenue recognition and earnings volatility are mainly driven by the “delivery schedule of end customers.” The 2025 annual report directly attributed the decline in revenue and costs to this factor. Supporting evidence: domestic revenue represented 99.29% of total revenue in 2025.
• Evidence gap in this research: specific figures for receivables days, receivables-to-revenue and absolute prepayment/payables balances were not obtained, so hard data cannot be used to determine which party has greater working-capital leverage. Indirect qualitative evidence includes: (1) the annual report explicitly refers to strengthening supply-chain management; (2) customers consist of highly concentrated specified customers and group-related parties, which in the industry usually means relatively long receivables periods and collections dependent on customer settlement schedules; and (3) a third-party 2023 annual-report analysis identified receivables/revenue, related-party transaction revenue and top-five-customer concentration as key areas of attention. Specific turnover days should not be provided; alternatively, state that the latest annual report should be consulted.
• Customer concentration, with source years and limitations: top-five customers represented 93.12% of sales in 2021, including 88.81% from related parties; 91.75% in 2022, including 90.88% from related parties; and approximately 94.4% in 2023. For restructuring target Harbin Aircraft Industries Group, the corresponding figures were 99.58% in 2021, 99.41% in 2022 and 99.88% in January–August 2023. Changhe Aircraft Industries Group also had a single customer accounting for more than 50% of revenue. The latest verifiable specific figures stop at 2021–2023. Specific 2024 and 2025 figures were not obtained. Supplier concentration is described only qualitatively as “relatively high and consistent with industry characteristics,” without specific figures.

Avicopter occupies an upper-middle position in the airframe final-assembly manufacturing chain. It is the sole/leading domestic helicopter final-assembly platform and has an exclusive supply position with certain downstream customers, representing resource- and qualification-based barriers. However, both upstream key components, particularly engines and airborne systems, and downstream customers are highly concentrated. The company is a price taker on the cost side and has almost no bargaining power on the sales side. Gross margin has therefore remained in the 9%–13% range and declined to 9.22% over the past three years. Genuine drivers of further gross-margin improvement can only be product-mix upgrades, increased volumes of AC-series civil aircraft and higher-margin airframe models, recovery in military-product pricing and delivery schedules, and growth in higher-value businesses such as low-altitude-economy products and C919/C929 subcontracting, rather than cost cutting, since 99.15% of costs are purchased materials and components.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The 2026 interim report was announced on 2026-08-26/27, and the 1H26 figures are unaudited. Recurring net profit attributable to shareholders was RMB 141 million, down 31.48%; basic EPS was RMB 0.2287, or approximately RMB 0.23; gross margin was 9.49%, net margin approximately 1.94% and ROE 1.12%. In 2025, recurring net profit attributable to shareholders was RMB 561 million, up 16.34%; basic EPS was RMB 0.80, ROE 3.99% and gross margin 9.22%. In 2024, recurring net profit attributable to shareholders was RMB 482 million, up 19.68%; basic EPS was RMB 0.7234, and the proposed cash dividend was RMB 2.04 per 10 shares, including tax. Revenue and attributable net profit in 1H25 were RMB 10.241 billion and RMB 282 million, respectively, providing the comparison base for the 1H26 decline. After the 2024 annual report, revenue subsequently reversed from RMB 29.766 billion to RMB 29.086 billion, meaning that 2025 revenue posted modest negative growth while profit improved, which was a genuine operating result. Sources: East Money, Tonghuashun, Dongwu Securities’ interim-report commentary dated 2026-08-31 by Xu Mu, Securities Star, China Securities Journal/Jinshi Data dated 2025-03-28, and the SSE visual annual report.

The latest complete financial report is the 2026 interim report. In 1H26, revenue was RMB 9.007 billion, down 12.05%, and attributable net profit was RMB 188 million, down 33.58%. Quarterly volatility was extreme: 1Q26 attributable net profit was RMB 37.85 million, down 81.26%, while 2Q26 attributable net profit was RMB 150 million, up 86.32%. Quarterly figures have limited representativeness. In 2025, revenue declined modestly while profit improved; in 2024, revenue increased while profit declined. Overall net margin was below 2% and ROE below 4%, indicating weak profitability quality. P/E is highly sensitive to modest earnings fluctuations, resulting in a large gap between static and dynamic P/E.

3.2 Earnings Forecasts

Institutional forecast sources include East Money’s industry-analysis page, which aggregates multiple institutions and gives EPS growth rates of +9.91% for 25A, +3.04% for TTM, +11.81% for 26E, +13.63% for 27E and +16.21% for 28E; revenue growth rates of -2.28% for 25A, -12.50% for TTM, +10.78% for 26E, +11.74% for 27E and +11.36% for 28E; MarketScreener, aggregating S&P Capital IQ, which forecasts revenue of RMB 29.086 billion in 2025A, RMB 39.653 billion in 2026E, up 36.33%, and RMB 44.794 billion in 2027E, up 12.96%, with net profit of RMB 652 million, RMB 696 million and RMB 795 million, respectively; eulerpool, aggregating eight analysts, which forecasts 2026E revenue of RMB 39.33 billion, EPS of RMB 0.85 and net profit of RMB 653 million; and Simply Wall St, which expects annual earnings and revenue growth of approximately 10% and 20.8%, respectively, and ROE of approximately 4.4% in three years, updated in April 2026. A forum repost of an unidentified broker forecast net profit attributable to shareholders of RMB 612 million, RMB 723 million and RMB 850 million for 2025, 2026 and 2027, corresponding to P/E multiples of 48x, 41x and 35x. No original research report was found, so credibility is low. ⚠️ Forecast dispersion: 2026 revenue forecasts differ materially. The East Money consensus implies approximately RMB 32.2 billion, up 10.8%, while MarketScreener and eulerpool imply approximately RMB 39.3–39.7 billion, up around 36%. The latter is clearly inconsistent with actual growth since 2024—up 11.9% in 2024 and down 2.3% in 2025. Another MarketScreener table previously estimated 2024 revenue at more than RMB 30 billion, versus actual revenue of RMB 29.766 billion, and 2025 revenue at RMB 34.8 billion, versus actual revenue of RMB 29.086 billion. This suggests that the latter forecasts are outdated or overly optimistic. The more moderate East Money estimates are preferable, while the high forecast of approximately RMB 39 billion should be treated skeptically. All figures are third-party aggregations rather than company guidance.

3.3 Valuation and Institutional Ratings

Current total market capitalization is approximately RMB 22.99 billion, with free-float market capitalization of approximately RMB 18.76 billion. Total shares outstanding are 820 million and free-float shares 669 million, based on Securities Star/East Money data as of the 2026 interim-report period. East Money’s industry-analysis consensus gives P/E of 35.27x for 25A, 41.27x for TTM, 31.54x for 26E, 27.76x for 27E and 23.89x for 28E; PEG is 1.43. P/S is 0.79 for 25A, 0.83 for TTM, 0.71 for 26E, 0.64 for 27E and 0.57 for 28E. Compared with the industry, Avicopter’s TTM P/E of 41.27x is materially below the industry average of 87.09x and median of 55.80x; P/S is also far below the industry median of 6.65. Other sources provide different figures: valueinvesting.io gave a P/E of 52.60x as of 2026-05-07, based on a different EPS basis and TTM EPS of RMB 0.59; eulerpool gave P/E of 31.21x and P/S of 0.52 as of 2026-08. Net assets per share were approximately RMB 21.43 in 1H26, implying P/B of approximately 1.3x at a share price of around RMB 28. ROE was only 1.12% for the half year and 3.99% for FY25, while net margin was approximately 1.9%, indicating weak earnings quality. ⚠️ P/E differs materially across sources, at 31x–52x, mainly because of differences in EPS basis and pricing date. The basis and date must be stated. ⚠️ Target prices range from approximately RMB 39 to RMB 51, reflecting substantial broker dispersion. Some target-price pages do not state the cut-off date and should be treated cautiously. Comparable valuation data for AVIC Shenyang Aircraft, AECC Aero-Engine and other peers was not obtained; no peer valuation table is provided. Financial data is as of the 2026 interim report, announced on 2026-08-26, while valuation and target-price pages have varying update dates, mostly during April–August 2026.*

4. Recent News and Announcements

4.1 2026 Interim Report: Revenue of RMB 9.007 Billion, Down 12.05%; Attributable Net Profit of RMB 188 Million, Down 33.58%

The company disclosed its 2026 interim report on 2026-08-27, under announcement no. 2026-031. 1H26 revenue was RMB 9.007 billion, down 12.05%; attributable net profit was RMB 188 million, down 33.58%; recurring attributable net profit was RMB 141 million, down 31.48%; basic EPS was RMB 0.2287; and net operating cash flow was RMB 2.578 billion, compared with an outflow of RMB 7.413 billion in the prior-year period, turning positive. In 2Q26 alone, revenue was RMB 6.634 billion, down 15.65%, and attributable net profit was RMB 150 million, up 86.32%. The quarterly split comes from broker commentary and was derived by subtracting from the reported half-year total, with immaterial rounding differences. Aerospace-product revenue was RMB 8.877 billion, or 98.56% of total revenue. 1H26 gross margin was 9.49%, up 3.21 percentage points year on year; R&D expenses rose 91.89% to RMB 298 million; and other gains declined by RMB 263 million, one of the main factors pressuring profit. The company attributed the results mainly to weaker-than-expected orders for major products and lower deliveries. Note: no separate earnings forecast was issued for 1H26; the formal interim report is the primary disclosure.

4.2 2026 Interim Performance Briefing: Online Text Interaction at SSE Roadshow Center from 15:00 to 16:00 on September 9

The company announced that it would hold its 2026 interim performance briefing through online text interaction at the SSE Roadshow Center from 15:00 to 16:00 on September 9, 2026. Participants included Chairman Yan Lingxi, General Manager Xu Bin, and CFO and Board Secretary Zhang Yuan, among others. The announcement number was 2026-031.

4.3 1Q26: Revenue of Approximately RMB 2.373 Billion, Down 0.12%; Attributable Net Profit of RMB 37.8537 Million, Down 81.26%

The 2026 first-quarter report was disclosed on 2026-04-28. Revenue was approximately RMB 2.373 billion, down 0.12%; attributable net profit was RMB 37.8537 million, down 81.26%; recurring net profit was RMB 15.2485 million, down 92.01%; and basic EPS was RMB 0.0462. The company attributed the sharp profit decline to adjustments to VAT additional-deduction tax incentives and lower government grants during the period.

4.4 2025 Annual Report: Revenue of RMB 29.086 Billion, Down 2.28%; Attributable Net Profit of RMB 652 Million, Up 17.27%

The 2025 annual report was disclosed on 2026-03-28 and is included for background. Revenue in 2025 was RMB 29.086 billion, down 2.28%; attributable net profit was RMB 652 million, up 17.27%; and basic EPS was RMB 0.7951.

4.5 Share Repurchase (2024 Plan): 3.4034 Million Shares Repurchased for RMB 69.9898 Million; Some Shares Listed for Trading on 2026-09-03

The 2024 repurchase plan has been completed. During the implementation period from 2024-11-25 to 2025-06-13, the company repurchased 3,403,400 shares, or 3.4034 million shares, for a total consideration of RMB 69.9898 million, for use in an employee shareholding plan or equity incentives. Of these shares, 2,287,950 were used for the first vesting period of the 2025 restricted-share incentive plan and were listed for trading on 2026-09-03. The company clarified that the 3.4034 million shares held in the special repurchase account in the 2026 interim report were the remaining shares from the 2024 plan and were not newly purchased in 1H26.

4.6 Share Repurchase (2026 New Plan): Board Approved RMB 80 Million–120 Million, Price Cap of RMB 82.36 per Share; Not Implemented as of 2026-08-31

On 2026-07-31, the board approved a share-repurchase plan with total funds of no less than RMB 80 million and no more than RMB 120 million, a maximum repurchase price of RMB 82.36 per share, and an implementation period of 12 months from board approval. As of 2026-08-31, implementation had not begun, and no progress data on the repurchased amount or number of shares was available. Uncertainty: an investor-relations response refers to the 2026-07-31 meeting as the “seventh meeting of the third board,” inconsistent with other company announcements referring to the “ninth board,” including the sixteenth meeting of the ninth board on 2026-08-25. This may be a typographical error or refer to another entity. The formal repurchase announcement should be used as the definitive source; the full independent repurchase-plan announcement was not cross-verified.

4.7 Shareholder Developments: AviChina Increased Its Holdings and Ownership Percentage Changed

Controlling-shareholder purchase: around April 2025, AviChina announced plans to increase its holdings through centralized bidding by no less than RMB 50 million and no more than RMB 100 million, citing recognition of the company’s long-term investment value, consolidation of control and enhancement of investor confidence. On 2025-11-24, AviChina purchased 1.392 million shares, representing approximately 0.21% of free-float shares. Against the backdrop of the major restructuring, AviChina agreed with Harbin Aircraft Industries Group on 2024-12-25 to acquire an additional 2.34% interest in Avicopter for approximately RMB 760 million. The transaction was completed on 2025-03-13, after which AviChina’s stake rose to approximately 50.90%. This consideration figure was sourced from S&P Capital IQ via an overseas financial website and is single-source data. As of 2026-03-31, AviChina held 51.07%, including restricted and freely tradable shares; AVIC held 2.60% in restricted shares; China Reform Holdings held 1.89%; Hong Kong Securities Clearing held 1.27%; and the National Green Development Fund Phase II held 1.26%. The number of shareholder accounts was 58,204, down 2,895 from the prior period, indicating greater concentration; the specific period should be confirmed against the company’s periodic disclosure.

4.8 Dividends: RMB 2.39 per 10 Shares for 2025; No Interim Distribution or Capitalization in 2026

The 2025 distribution plan was RMB 2.39 per 10 shares, including tax. The record date was 2026-06-03 and the ex-dividend date was 2026-06-04. For 1H26, the company proposed no distribution and no capitalization.

4.9 Governance and Personnel Changes: Independent-Director Replacement, Deputy General Manager Resignation and Compensation Policy

Independent-director replacement: Mr. Wang Meng completed six consecutive years in office. The company held the fifteenth meeting of the ninth board on 2026-05-15 and the first extraordinary general meeting of 2026 on 2026-06-01, approving his replacement and electing Ms. Tang Chunlin as independent director. Executive change: on 2026-05-20, the board received Mr. Zeng Taotao’s written resignation from his position as deputy general manager. The extraordinary general meeting on 2026-06-01 also considered the proposal to formulate the “Compensation Management Policy for Directors and Senior Management.” On 2025-12-23, the third extraordinary general meeting of 2025 approved six proposals, including adjustments to estimated 2025 and 2026 routine related-party transactions, a financial-services framework agreement with AVIC Finance and related-party transactions, adjustments to certain use-of-proceeds projects, amendments to the articles of association and director replacement. Related-party shareholders abstained from voting on the related-party transaction proposals.

4.10 Capital Operations and Use-of-Proceeds Changes: Restructuring, Subsidiary Capital Increase and Merger, Project Adjustments and eVTOL Cooperation

Under the major restructuring approved by CSRC document [2024]173, the company issued shares at RMB 35.73 per share to purchase 100% of Changhe Aircraft Industries Group and Harbin Aircraft Industries Group held by AviChina and AVIC, and raised no more than RMB 3.0 billion in supporting financing at RMB 33.98 per share. Total shares had increased to 819,893,213 as of 2025-12-31. On 2025-11-25, the company increased the capital of wholly owned subsidiary Hafei Aviation by RMB 153 million, raising its registered capital from RMB 1.4183252 billion to RMB 1.5713252 billion. Harbin Aircraft Industries Group also proposed absorbing Hafei Aviation, thereby merging the two legal entities. This absorption merger was proposed but no completion announcement was located, so whether and when it was completed remains unconfirmed. At the 2025-12-23 shareholders’ meeting, the company approved cancellation or termination of the UAV R&D and basic-capability construction project, the Jingdezhen maintenance-base project under the aviation comprehensive-maintenance capability and industrialization program, and the aviation emergency-rescue key laboratory. It added a certain aircraft supply-chain construction project, with planned investment of RMB 218 million and completion in December 2028; a multipurpose export-helicopter development project, with investment of RMB 220 million and completion in August 2029; and a large civil helicopter medical-rescue configuration project, with investment of RMB 148 million and completion in December 2029. Total use-of-proceeds projects amounted to approximately RMB 2.968 billion. In March 2026, the company signed a technology-development contract with AviChina and the AVIC Institute of Automatic Control, focusing on core technologies for intelligent electric aircraft and eVTOLs. On 2026-01-30, it opened a dedicated proceeds account and signed a tripartite supervisory agreement. On 2026-02-03, it redeemed cash-management products funded by temporarily idle proceeds; this was routine proceeds management rather than a major event.

4.11 Industry and Policy: Low-Altitude Economy Included in Government Work Reports for Three Consecutive Years; AC332 and AR-E800 Advance

The low-altitude economy was included in government work reports for three consecutive years from 2024 to 2026. In October 2025, the Fourth Plenary Session of the 20th CPC Central Committee proposed accelerating the development of strategic emerging-industry clusters including new energy, new materials, aerospace and the low-altitude economy. The 2026 15th Five-Year Plan outline proposed promoting the healthy and orderly development of the low-altitude economy. The company positions itself as a core high-tech aviation enterprise in the low-altitude economy. Product progress includes completion of AC332 “Lucky Bird” certification flight testing in March 2026; signing of an agreement at AVIC’s 2026 Low-Altitude Industry Development Conference for the international-market development and operation of “2+6 AC332 helicopters,” bringing cumulative orders above 40 aircraft; and completion of final assembly and delivery of multiple heavy-lift eVTOL AR-E800 aircraft, which have entered testing and flight testing. Policy risk: adjustments to VAT additional-deduction tax incentives materially affected 1Q26 profit and remain a policy variable requiring monitoring.

4.12 Limitations and Uncertainties to Be Disclosed

1) The name of the meeting approving the repurchase plan is uncertain: an investor-relations response referred to the “seventh meeting of the third board” on 2026-07-31, inconsistent with the company’s “ninth board” designation. The formal repurchase announcement and progress announcements should prevail. As of 2026-08-31, the repurchase had not begun and no repurchase amount or share-count data was available. 2) Time basis: the memorandum’s data is as of early September 2026. The latest periodic report is the interim report disclosed on 2026-08-27; the 3Q26 report had not yet been published, so no 3Q26 earnings guidance existed. 3) Single-source data: 1Q and 2Q standalone profit were derived from Dongwu Securities’ commentary by subtracting the 1Q figure from the company’s 1H attributable net profit of RMB 188 million; 2Q attributable net profit of RMB 150 million includes immaterial rounding differences. The approximately RMB 760 million consideration for AviChina’s acquisition of the additional 2.34% interest came from an overseas repost of S&P Capital IQ data rather than the original company announcement and should be treated cautiously. 4) Financial-basis warning: Huaxin F10 displayed figures such as “net profit down 92.01%,” consistent with the quarterly report, but some F10 pages mix quarterly and cumulative bases; the reporting period must be checked. 5) The November 2025 proposal for Harbin Aircraft Industries Group to absorb Hafei Aviation has not been confirmed as completed. 6) A complete line-by-line search of the August 2026 announcement list and latest September 2026 developments was not completed because of search limits. Subsequent checks of the SSE investor-relations and Cninfo announcement pages are recommended to confirm whether new September announcements were issued, such as repurchase progress or performance-briefing minutes.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Avicopter (600038.SH) closed at RMB 28.04 on September 11, 2026, down 0.28%. MA5 > MA10 > MA20 and the close above all three indicate a relatively strong short-term technical picture. MACD formed a golden cross above the zero line on August 25, and RSI formed a golden cross above 50 on September 8. However, the latest price remains below the chip-cost average of RMB 30.42–30.47, warranting caution until a convincing breakout. Fund flow was weak: major-investor funds recorded a net outflow of RMB 15.9997 million on September 11, equivalent to 8.72% of trading value, and remained in net outflow over the past 10 days. The volume ratio was only 1.10 and trading value approximately RMB 184 million, with no clear volume expansion. Margin financing balance was approximately RMB 933 million, or 4.95% of free-float shares, above the market average, indicating sizeable leveraged-fund exposure. Ownership is highly concentrated within the AVIC system, with central-SOE holdings exceeding 53% in aggregate. No obvious public-fund seats were found among the publicly disclosed leading shareholders, suggesting a “controlling shareholder plus national funds” structure. Shareholder data is no earlier than 2025-09-30 and is nearly one year out of date. Overall, the stock presents a combination of “relatively strong technicals, weak fund flows and insufficient volume.”

5.3 Short-Term Outlook for the Coming Week (Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on the September 11, 2026 closing data and historical prices and technical indicators. The price ranges and scenario weights are for observational reference only, are not statistical probabilities, do not constitute investment advice and do not guarantee future performance.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Scenario A: Range-bound consolidation (relatively high weight, approximately 50%–60%; heuristic subjective weight, not a statistical probability): The share price will likely fluctuate within RMB 27.5–28.7, supported by MA5/MA10 at RMB 27.85–27.92 and the bull-bear boundary at RMB 27.47, but capped around RMB 28.4 because of continued small net outflows from major-investor funds and a volume ratio of only 1.10. Conditions: no clear direction in the broader market or defense/low-altitude-economy sectors, with daily turnover remaining in the normal range of RMB 160–190 million.
• Scenario B: Weak downward move (medium weight; heuristic subjective weight, not a statistical probability): If the broader market or aerospace-defense sector weakens and major-investor outflows accelerate, a confirmed break below RMB 27.3–27.5 and close below that range would open downside toward RMB 26.7–26.8. In an extreme case, the probability of testing the 52-week low around RMB 24.34 would increase. Triggers: a renewed MACD dead cross above the zero line and consecutive declines accompanied by increased volume.
• Scenario C: Stronger rebound (low weight; heuristic subjective weight, not a statistical probability): If sector-wide catalysts emerge, such as low-altitude-economy or defense policy measures or order-related news, accompanied by volume expansion, a confirmed break above RMB 28.4–28.7 could target RMB 29.8–30.5, corresponding to resistance at RMB 29.85 and the chip-cost average around RMB 30.4. Triggers: a clear increase in daily turnover and renewed expansion of the MACD histogram.

③ Fund-Flow and Liquidity Background

On September 11, major-investor funds recorded a net outflow of RMB 15.9997 million, equal to 8.72% of total turnover; speculative funds recorded a net inflow of RMB 1.5696 million and retail funds a net inflow of RMB 14.4301 million. Major-investor funds had remained in net outflow for 10 consecutive days, with JF reporting cumulative 10-day net outflow of approximately RMB 77.7785 million, five-day cumulative DDX of -0.254 and 10-day large-investor outflow of approximately RMB 66.52 million. This represented repeated small outflows rather than a single-day anomaly. Northbound funds most recently reduced holdings by 228,100 shares and held 8.1954 million shares, with a “four consecutive days of outflow” label from JF; this is single-source data and should be treated cautiously. On September 11, the margin-financing-and-securities-lending balance was RMB 929 million, or 4.95% of free-float shares, versus a market average of 3.95%; margin balance was approximately RMB 933 million and same-day net margin purchases represented 4.89%. The large leveraged-fund position could amplify volatility through forced selling if the price declines. Institutional participation was 22.81% according to East Money Qian Gu Qian Ping, characterized as “light control.” Recent one-day and 20-day major-investor costs were RMB 27.96 and RMB 27.36, respectively. Recent daily turnover was approximately RMB 160–185 million, including approximately RMB 167 million on September 1, RMB 160 million on September 7, RMB 177 million on September 9 and RMB 184 million on September 11. Turnover was approximately 0.87%–0.98%, low for a company with RMB 23.0 billion market capitalization, indicating relatively thin liquidity. Short-term prices are sensitive to marginal fund flows, large orders may experience slippage, and the volume ratio of 1.10 showed no expansion. As of 2025-09-30, according to an etnet repost, AviChina held 50.90%, AVIC 2.60%, Hong Kong Securities Clearing 1.74%, China Reform Holdings 1.51% and the National Green Development Fund Phase II 1.26%. A more recent but undated Huaxin F10 page showed AviChina at 51.07%, AVIC at 2.6%, China Reform Holdings at 1.89%, Hong Kong Securities Clearing at 1.27% and the National Green Development Fund Phase II at 1.26%, plus a 1.01% holding by a Heilongjiang advanced-manufacturing private-equity fund managed by Longjiang Fund Management. Shareholder accounts numbered 58,204, down 2,895 from the prior period. Ownership is highly concentrated within the AVIC system, with China Reform Holdings, the National Green Development Fund and Hong Kong Securities Clearing among the visible top shareholders, but no public mutual-fund seats were identified. Complete evidence of public-fund holdings is unavailable. All shareholder data is no earlier than 2025-09-30 and may have changed materially. Total shares are 820 million and tradable A shares approximately 669 million, or about 81.6% of total shares. However, AviChina’s holdings include substantial restricted or controlling positions, meaning actual free float is smaller than nominal free float and daily turnover is further reduced.

Using recent daily turnover of RMB 160–185 million as the normal baseline, a sustained increase above RMB 250 million, approximately 1.4x normal turnover, or a rise in turnover to approximately 1.3% or higher could be viewed as a fund-inflow or volume-expansion signal. Persistent turnover below RMB 150 million would provide weak confirmation of direction.

④ Points to Monitor (Observational Framework Only, Not Trading Instructions)

• Monitor whether support at RMB 27.3–27.5, the MA20/bull-bear boundary, and RMB 26.7–26.8 holds, and whether resistance at RMB 28.4–28.7 can be broken with volume.
• Monitor whether daily MACD forms a new dead cross above the zero line and whether RSI remains above 50.
• Monitor whether daily turnover expands above RMB 250 million as confirmation of volume.
• Monitor whether the net flow of major-investor and Northbound funds changes from sustained outflow to inflow; current flows remain modestly and persistently negative.

This scenario analysis is based on the September 11, 2026 closing data and historical price and technical-indicator calculations. Short-term share prices may also be affected by news, fund flows, broader market conditions and other factors. Technical indicators are inherently lagging and limited. This analysis does not guarantee future performance or constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear their own investment risk.

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

The helicopter industry is an important part of aerospace. Helicopters can serve as platforms for R&D and be modified to perform specific functions. Downstream applications include national security, disaster response, emergency rescue, agriculture and forestry, geological exploration, tourism and flight training. From a policy perspective, the low-altitude economy was again included in the 2025 government work report. In October 2025, the Fourth Plenary Session of the 20th CPC Central Committee proposed accelerating strategic emerging-industry clusters including new energy, new materials, aerospace and the low-altitude economy. The domestic helicopter-airframe market is essentially led by entities within the AVIC system. Through the 2024 restructuring, Avicopter brought the two major airframe assets of Changhe Aircraft Industries Group in Jingdezhen and Harbin Aircraft Industries Group in Harbin into the listed company, becoming the sole listed helicopter-airframe platform in the group. Competition is therefore more a matter of internal specialization among the Harbin, Jingdezhen, Tianjin and Baoding segments, together with a small number of external entrants in civil aircraft and eVTOLs.

6.2 Competitive Structure

• Domestic helicopter airframes are led by entities within the AVIC system. Following its 2024 restructuring, Avicopter became the group’s sole listed helicopter-airframe platform, with specialization across Harbin, Jingdezhen, Tianjin and Baoding.
• Downstream helicopter applications are broad, including national security, disaster response, emergency rescue, agriculture and forestry, geological exploration, tourism and flight training.
• Policy support remains strong: the low-altitude economy was again included in the 2025 government work report, while the October 2025 recommendation for the 15th Five-Year Plan proposed accelerating strategic emerging-industry clusters including new energy, new materials, aerospace and the low-altitude economy.
• The company has entered the low-altitude economy and new-energy aircraft markets. Heavy-lift eVTOL AR-E800 has completed final assembly and delivery of multiple aircraft and entered testing and flight testing; AC332 has completed certification and all engineering tests; and the AC352 search-and-rescue configuration is undergoing adjusted flight testing. The company is also one of the core suppliers to the domestic C919 and participates in C929 supporting R&D, including the C929 outer-flap work package.
• Important note: there is no fully comparable A-share helicopter-airframe company. Differences in product portfolios and customer structures mean that valuation and gross margin cannot be directly compared. The 2024 restructuring report followed similar reasoning and cited an older 2015 document stating that no listed company in Shanghai or Shenzhen had exactly the same principal products as the company.
• ⚠️ Search capacity was exhausted on competitor comparisons. The following list includes companies marked “not verified,” which must be reconfirmed in any formal report.
• Third-party comparison data, from a single source and not cross-verified, should be used cautiously. A caibaobang page showed Avicopter gross margins of 12.43/10.30/12.95/10.47/10.44% for 2021–2025. The 2025 figure of 10.44% conflicts with the 9.22% reported by aastocks/etnet and may reflect an outdated page or different accounting basis. Net margins were approximately 4.19/1.99/2.27/1.87/2.24%.

6.3 Main Competitors

The key difference between Avicopter and the above comparables is that Avicopter is China’s sole/leading listed helicopter-airframe platform. Both upstream, including engines and airborne systems, and downstream customers are highly concentrated. The company is a price taker on costs and has almost no bargaining power on sales. Aerospace-product gross margin was only 9.33% in 2025, while overall gross margin was 9.22%. By contrast, fighter-aircraft platforms such as Shenyang Aircraft and Chengdu Aircraft have different product portfolios and customer structures, so gross margins and valuations cannot be directly compared. A formal report should organize the comparable-company table around other AVIC airframe platforms—Shenyang, Chengdu, Xifei and Hongdu—and explicitly state that there is no fully comparable A-share helicopter-airframe company. ⚠️ Most of the above companies were not individually cross-verified in this search, and the formal report must reconfirm them. Data from the caibaobang comparison page is single-source and unverified and should be used cautiously.

7. Risk Factors

• Excessive concentration of end customers and orders: The top five customers accounted for approximately 91.75%–94.4% of sales in 2021–2023, while the corresponding proportion for Harbin Aircraft Industries Group exceeded approximately 99.4%. Both Harbin Aircraft Industries Group and Changhe Aircraft Industries Group had single customers accounting for more than 50% of revenue in the relevant periods. Changes in orders, acceptance or delivery schedules from specific customers could materially affect revenue recognition and profit.
• The risk of weaker-than-expected 2026 orders and deliveries has already materialized: 1H26 revenue declined 12.05% and attributable net profit declined 33.58%. The company attributed the decline mainly to weaker-than-expected orders for major products and lower deliveries. If deliveries fail to recover as expected, full-year performance may remain under pressure.
• Continued gross-margin decline: Overall gross margin fell from 12.95% on the restated 2023 basis to 10.47% in 2024 and 9.22% in 2025. Aerospace-product gross margin was only 9.33% in 2025. Raw materials and purchased components accounted for 99.15% of principal costs, leaving limited cost bargaining power for engines, airborne systems and other key components. Cost cutting may therefore provide insufficient support for margin improvement.
• Earnings quality and policy-related income volatility: Attributable net profit increased 17.27% in 2025 even though gross margin declined. The improvement was mainly related to lower R&D, selling and finance expenses and higher other gains. In 1Q26, adjustments to VAT additional-deduction tax incentives and lower government grants caused attributable net profit to decline 81.26%. Changes in non-recurring factors may amplify earnings volatility.
• Commercialization risk for new businesses: Although AC332 has completed certification flight testing and made progress in international-market cooperation, and AR-E800 has entered testing and flight testing, the low-altitude economy, eVTOLs, export helicopters and medical-rescue configurations still require order conversion, airworthiness validation, mass production and customer operations. Their short-term contribution to revenue and profit remains uncertain.
• Receivables and working-capital risk: Customers are highly concentrated and mainly consist of specified customers and AVIC-related parties. Collections may depend on customer settlement arrangements. Complete hard data on receivables days was not obtained. If deliveries and collections become misaligned, operating cash flow and working capital could come under pressure.
• Related-party transaction and supply-chain concentration risk: The company operates within the AVIC system, and both customer and supplier concentration have been described as high. Routine related-party transactions and financial-services framework arrangements are frequent. Changes in internal group support, supply-chain deliveries or related-party arrangements could affect production organization, cost control and revenue recognition.
• Valuation and market-liquidity risk: As of September 11, 2026, dynamic P/E was approximately 61.30x and trailing P/E approximately 41.27x. Sources differ substantially on the scale of 2026 revenue. Turnover was below 1%, major-investor funds remained in net outflow and margin financing represented approximately 4.95% of free-float shares. If earnings or market expectations weaken, valuation contraction and deleveraging could amplify share-price volatility.

8. Conclusion and Outlook

The company’s core value lies in its integrated helicopter-airframe and component platform following the restructuring, its industrial position within the AVIC system, and its significant product and qualification barriers. If end-customer delivery schedules recover, military helicopters and airframe products increase in volume, and new businesses such as AC332, eVTOLs, export helicopters and medical-rescue configurations gradually generate orders, revenue scale and product mix could improve. Continued policy support for the low-altitude economy also provides a favorable environment for civilian helicopters and new-energy aircraft.

Short-term performance, however, has not shown stable recovery. In 1H26, both revenue and attributable net profit declined year on year, with significant profit volatility between the first and second quarters. Profit growth in 2025 also depended mainly on lower expenses and higher government grants rather than higher gross margin. Because aerospace products account for nearly 99% of revenue, earnings remain highly sensitive to orders, delivery acceptance and related-party settlement schedules involving a small number of customers. Future improvement therefore depends principally on order execution, delivery recovery and the commercialization progress of new products.

Investors should focus on helicopter-airframe orders and deliveries, aerospace-product gross margin, the sustainability of recurring profit and operating cash flow, and progress on the construction of projects following the use-of-proceeds adjustments. Valuation remains relatively high, with substantial differences across calculation bases, while institutions also disagree materially on 2026 revenue. Until earnings quality, growth realization and technical-market volume improve in tandem, market pricing may remain highly sensitive to operating volatility.

Data Sources

• 600038 Avicopter
• Avicopter (600038.SH) Core Topics—PC_HSF10 Materials
• SH.600038 Avicopter—A-Share Real-Time Quote—Company Information
• Avicopter
• Avicopter 2025 Annual and 2026 First-Quarter Performance Briefing
• Avicopter Listed-Company Information
• Avicopter: 2025 Annual Report Summary
• Avicopter 1H26 Revenue of RMB 9.007 Billion Amid Active Low-Altitude-Economy Expansion
• Avicopter (600038)—F10 Materials—Compass Market
• Avicopter: Huiyang Propeller’s Core Business
• Avicopter Plc 600038
• Avicopter (600038)—Baidu Finance
• Avicopter RMB 28.04, Down RMB 0.08 (-0.28%)—East Money
• Zhejiang Xiangyuan Tourism 600576
• Avicopter Securities Information—Tonghuashun
• Listed-Company Industry Classification Results
• China Capital Market Information Disclosure Platform
• Avicopter: RMB 18.7317 Million Margin Purchase on September 10
• Sina Finance Stock Announcement
• Shanghai Market Margin-Collateral Securities List
• Avicopter 2025 Annual Report—JF
• Avicopter 2025 Corrected Annual Report—Securities Star
• Avicopter Main Revenue Composition
• Avicopter 2022 Results Under Pressure
• Avicopter Restructuring Report Draft
• CICC Independent Financial Adviser Report
• 2023 Annual-Report Analysis Express
• Avicopter 2023 Annual-Report Questions
• Avicopter 2021 Annual Report
• China Aviation Securities Financial-Adviser Report
• Avicopter vs AVIC Chengdu Aircraft Comparison
• Avicopter 2024 Visual Annual Report
• Avicopter 2024 Results and Proposed Dividend
• Avicopter 2024 Results—Zhitong Finance
• Avicopter 2026 Interim Report—East Money
• Avicopter 1H26 Net Profit Down 33.58%—Tonghuashun
• Avicopter 1H26 Net Profit Down 33.58%—East Money
• Avicopter 1H26 Interim Report Commentary
• Avicopter 1H26 Revenue and Net Profit
• Avicopter 1Q26 Recurring Net Profit
• Avicopter: Ninth Board, Sixteenth Meeting
• Avicopter 2026 Shareholders’ Meeting Notice
• Avicopter Stock Calendar
• Avicopter Valuation Analysis—Tonghuashun
• Avicopter Institutional Ratings
• Avicopter Share-Price and Trend—JF
• Avicopter Fund Flows—East Money
• Avicopter September 11 Major-Investor Net Selling
• Avicopter Technical Analysis
• Avicopter Technical Analysis—Investing.com
• Avicopter (600038)
• Avicopter Historical Data
• Avicopter Stock Statistics and Valuation
• Avicopter—Morningstar

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current through the September 11, 2026 close (the latest common trading date across sources). Technical indicators and fund flows are as of 2026-09-11; margin financing and securities lending and major-investor funds are for September 11 only; shareholder-structure data is no earlier than 2025-09-30, is materially lagged and may have changed. Timing differences may exist. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only, does not constitute investment advice, and investors should make independent judgments and bear their own investment risks.