China Aerospace Times Electronics Co., Ltd. (600879)

Single-Stock Analysis Report | Sector: Defense & Military—Aerospace Equipment/Military Electronics | Report Date: September 13, 2026 | The base date is September 13, 2026. As that day is a Sunday, market and technical data are in principle as of the close of the most recent trading day, September 11, 2026; certain technical indicators are updated as of September 9, 2026, and shareholder and institutional holdings data are as of June 30, 2026.

This report was automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

I. Core Summary

Aerospace Electronics' performance came under marked pressure in the first half of 2026: revenue was RMB 4.530 billion, down 22.19% year on year; net profit attributable to parent was RMB 40.5892 million, down 76.63% year on year; and net profit attributable to parent after deducting non-recurring items was RMB 22.7240 million, down 84.90% year on year. Of this, second-quarter revenue alone was approximately RMB 2.687 billion, down 34.80% year on year, and net profit attributable to parent was approximately RMB 9.31 million, down 93.53% year on year. The company and related research reports attribute the main reasons to product delivery progress falling short of expectations and pricing declines on certain products.

The company is the only listed platform of the Ninth Academy of China Aerospace Science and Technology Corporation (CASC), principally engaged in aerospace electronic information products and unmanned system equipment products, with core capabilities covering inertial navigation, spaceborne TT&C, inter-satellite laser communication terminals, and electromechanical components. In 2025, aerospace supporting products revenue was RMB 9.276 billion, accounting for 66.68% of full-year revenue; in the first half of 2026, aerospace electronic information product revenue was RMB 3.011 billion, accounting for 66.47%, unmanned system equipment revenue was RMB 579 million, accounting for 12.78%, and the gross margin of aerospace electromechanical components reached 32.28%, giving the product mix certain room for upgrading and incremental growth.

The company's operating quality remains significantly weaker than its income statement suggests. Accounts receivable were RMB 8.834 billion at the end of 2025 and increased to RMB 10.595 billion in the first half of 2026; over the same period, inventory accounted for 49.33% of total assets, net cash flow from operating activities was negative RMB 2.346 billion, and full-year 2025 was also negative RMB 1.033 billion, with the company recording negative operating cash flow for multiple consecutive years. The aerospace supporting business sits in an industry-chain segment dominated by prime contractors and system-internal customers, where pricing is constrained by cost review, cost control, and customer-designated supplier mechanisms, with gross margin long locked at around 20% and net margin relatively low.

As of September 11, 2026, the company's share price closed at RMB 14.55, with total market capitalization of approximately RMB 48.005 billion, in a phase of sideways repair after retreating from an August high. The share price is slightly above MA5 and MA10 but below MA20; MACD is near the zero axis, and RSI is in a neutral range of approximately 50–55; over the past 5 trading days, main-force funds recorded cumulative net outflow of approximately RMB 172 million, and the technical picture has not yet formed a clear medium-term trend reversal signal.

II. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Aerospace supporting products (full-year 2025 revenue RMB 9.276 billion, accounting for 66.68%, gross margin 19.27%)
• System equipment products (full-year 2025 revenue RMB 2.302 billion, accounting for 16.55%, gross margin 13.94%)
• Aerospace electromechanical component products (full-year 2025 revenue RMB 1.293 billion, accounting for 9.30%, gross margin 37.22%)
• Aerospace technology application products (full-year 2025 revenue RMB 942.9 million, accounting for 6.78%, gross margin 19.06%)
• Other supplements (full-year 2025 RMB 96 million, accounting for 0.69%, gross margin 62.53%)
• Aerospace electronic information products (2026H1 revenue RMB 3.011 billion, accounting for 66.47%, gross margin 20.52%)
• Unmanned system equipment products (2026H1 revenue RMB 579.1 million, accounting for 12.78%, gross margin 15.81%)

2.3 Industry Chain Upstream/Downstream Position and Cost-Profit Structure

Aerospace Electronics is mainly engaged in aerospace industry supporting, with prime contractors as customers, and its industry-chain position is in the middle of the smile curve, slightly toward the upstream supporting segment; key upstream components are designated and price-capped by downstream prime contractors, downstream customers are highly concentrated within the system (mainly within the CASC system), working capital is substantially occupied by downstream parties, gross margin is long locked at around 20%, and net margin is only about 1.6%–3.8%.

• The company states that its required basic materials mainly include multiple categories such as metals and precious metals, electronic components, standalone equipment products, and outsourced processing (source: 2026 interim report management discussion/Hithink F10 operating analysis).
• Suppliers must be reviewed and filed by the user side stationed at the company and included in the "List of Qualified Suppliers," and procurement can only select suppliers within the list.
• Certain important parts have suppliers designated by end users or prime contractors, with supplier delivery prices limited; prices of steel, copper, and certain general electronic components fluctuate with the market.
• Implication: For key components, the company has almost no independent pricing power over upstream parties (designated + price-capped by downstream prime contractors), and only bears commodity price fluctuations on general materials; its response is strategic material procurement and centralized procurement to enhance control over suppliers.
• This two-way squeeze of upstream designation and downstream price caps is the structural reason its gross margin has long been locked at around 20%.
• Supplier concentration: specific figures on the company's disclosed top 5 suppliers' share were not found in the research notes, representing a data gap.
• Source: http://stock.stockstar.com/RB2026082600054778.shtml; https://f10.10jqka.com.cn/600879/operate/.
• Sales model: The aerospace industry is divided into prime contractors/supporting units, and the company is mainly a supporting unit; some supporting products are assigned by prime contractors through planned tasks via the controlling shareholder, some are obtained through bidding/inquiry comparison, and some are obtained jointly with prime contractors (2026 interim report management discussion).
• Highly concentrated customers: As of the 2025-12-31 scope, the top 5 customers together accounted for sales of RMB 11.170 billion, representing 80.30% of operating revenue; of this, CASC alone accounted for RMB 7.880 billion, or 56.65% (source: Gubit/Chaguwang, update date 2026-08-01, non-primary source).
• Major inconsistency in concentration data must be flagged: The same data source series separately lists top 5 customers as only RMB 5.009 billion as of 2024-12-31, accounting for 35.08%; another self-media source also claims the top five customers contributed about 35% of sales, the vast majority being brother units within the CASC system. The difference between 80.30% and 35.08% is too large, suspected to be a difference between group consolidated scope and standalone scope or a change in disclosure method; both appear only in non-primary sources and could not be cross-verified, and the original table in the latest annual report's top five customers note should prevail.
• Pricing mechanism: The military procurement system is oriented toward bidding, cost review, and cost control; the company's annual report contains statements about changes in customer payment policies and reduced sales collections; the statement that payments are mostly made centrally at year-end is a media/self-media scope and can be used as a qualitative judgment, not a precise payment term.
• Structural bargaining dynamics: Downstream customers are prime contractors/military, and the company is the supporting party, in a supplier structure; this is neither a consumer-goods brand premium structure nor a commodity benchmark pricing structure, but closer to a military supporting model of cost-plus with cost-review constraints.
• Accounts receivable: RMB 8.834 billion at end-2025 (RMB 6.994 billion the prior year, +26.31%), with the company listing accounts receivable as approximately 3892% of net profit attributable to parent; accounts receivable at end-2026H1 were RMB 10.595 billion, accounting for 21.34% of total assets (+19.93% versus beginning of period, which the company explains as uneven sales collections across the year). Inventory: approximately RMB 22.774 billion in 2025, with 2026 interim report inventory accounting for 49.33% of total assets and inventory/revenue ratio at approximately 163.73%. Accounts payable: RMB 14.318 billion in the 2026 interim report, accounting for 28.84% of total assets, with accounts payable + notes payable accounting for 84.10% of total liabilities. Operating cash flow: net operating cash flow in 2025 was approximately negative RMB 1.033 billion (negative RMB 0.31 per share, -156.55% year on year), with operating cash flow negative for three consecutive years; 2026Q1 was approximately negative RMB 1.288 billion (source is a self-media scope, for reference only). Conclusive evidence: the large scale of accounts receivable, its extremely high multiple of net profit attributable to parent (3892%), combined with inventory accounting for nearly half of assets and operating cash flow negative for many years, indicate the company is in a clearly weak position in the industry chain's working capital relationship, effectively financing production for downstream prime contractors. Receivable concentration among the top five is also relatively high: as of 2024-12-31, the top 5 major accounts receivable totaled approximately RMB 3.779 billion, with the first at approximately RMB 1.372 billion (Sina Finance financial notes); another Sina statement listing top five accounts receivable + contract assets totaling only RMB 266 million is inconsistent with the company's RMB 8.8 billion accounts receivable, suspected to be a single subsidiary/parent company statement, and should not be used on a consolidated basis.
• Customer concentration (2025-12-31 scope): top 5 customers together accounted for sales of RMB 11.170 billion, representing 80.30% of operating revenue, of which CASC alone accounted for RMB 7.880 billion, or 56.65%; source is Gubit/Chaguwang (non-primary source, update date 2026-08-01). The same data source series separately lists top 5 customers as only RMB 5.009 billion as of 2024-12-31, accounting for 35.08%, while another self-media source also says about 35%; the difference between 80.30% and 35.08% is too large, suspected to be a difference between group consolidated scope and standalone scope or a change in disclosure method, and neither could be cross-verified, with the original table in the latest annual report's top five customers note to prevail. Supplier concentration: specific figures on the company's disclosed top 5 suppliers' share were not found in the research notes, representing a data gap. Accounts receivable concentration: as of 2024-12-31, the top 5 major accounts receivable totaled approximately RMB 3.779 billion, with the first at approximately RMB 1.372 billion (Sina Finance financial notes, non-primary source, for reference only).

Aerospace Electronics sits in the middle of the smile curve, slightly toward the upstream supporting segment—it is not a prime brand manufacturer building complete satellites/aircraft nor a downstream operating service provider, but a high-reliability component and subsystem manufacturer supplying prime contractors (TT&C/inertial navigation/spaceborne electronics/electromechanical components), with more than 90% of customers within the system (mainly within the CASC system). Its gross margin long locked at around 20% and net margin of only 1.6%–3.8% are the structural norm of this ecological niche—supporting party + designated supplier + subject to cost review + financing production—rather than a single-year operational misstep. The main drivers of future gross margin improvement are not pricing power (which basically does not exist under military cost-review constraints), but product mix upgrading (relatively higher value-added products such as laser communication terminals and unmanned systems/more flexible military trade pricing) + scale effects and cost control + divestiture of low-margin civilian products (Aerospace Electromechanical has been deconsolidated).

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The above data come from the company's 2026 interim report summary (disclosure date 2026-08-26), 2025 annual report (disclosed 2026-03-28), 2024 annual report, and Changjiang Securities/Guosen Securities research reports (2026-05). Other 2026H1 indicators: total profit RMB 56.13 million (-71.71%), net profit attributable to parent after deducting non-recurring items RMB 22.72 million (-84.90%), net cash flow from operating activities negative RMB 2.3459 billion (improved by 30.41% year on year), basic/diluted EPS RMB 0.012, weighted average ROE 0.194% (0.836% in the same period last year), total assets at period end RMB 49.650 billion, net assets attributable to parent RMB 20.853 billion (-0.03% versus beginning of year). Other 2025 annual report indicators: total profit RMB 276.0 million (-57.60%), net profit attributable to parent after deducting non-recurring items RMB 158.5 million (-5.31%), net operating cash flow negative RMB 1.0331 billion (2024 was negative RMB 402.7 million), net assets attributable to parent at period end RMB 20.860 billion (+0.87%), earnings per share approximately RMB 0.069, net assets per share RMB 6.322, dividend proposal RMB 0.21 per 10 shares (2024年度 was RMB 0.50 per 10 shares); Guosen Securities supplementary scope: after excluding the deconsolidation factor of Aerospace Electromechanical in 2025, revenue actually grew 13.78%, and the period expense ratio was 16.96% (-1.45pct year on year). Other 2024 indicators: deducted non-recurring RMB 167.4 million (-59.44%), EPS RMB 0.166; the revenue decline was mainly due to lower aerospace product deliveries and Aerospace Electromechanical no longer being consolidated from August-December 2024, while the increase in net profit attributable to parent was mainly due to investment income from the transfer of Aerospace Electromechanical equity (non-recurring gains and losses totaled RMB 381 million, of which asset disposal RMB 289 million and government subsidies RMB 105 million). 2026H1 main business composition: aerospace electronic information products RMB 3.011 billion (accounting for 66.47%, gross margin 20.52%), unmanned system equipment RMB 579.1 million (accounting for 12.78%, gross margin 15.81%), aerospace electromechanical components RMB 544.4 million (accounting for 12.02%, gross margin 32.28%), aerospace technology applications RMB 350.1 million (accounting for 7.73%). TTM scope: TTM net profit approximately RMB 93.9 million (consistent with stockanalysis.com's TTM net profit of RMB 93.88 million as of 2026-06-30), TTM revenue approximately RMB 12.618 billion, TTM EPS approximately RMB 0.0285. Notes flag an anomaly: back-calculating from H1, 2026Q2 standalone revenue was approximately RMB 2.687 billion, about -34.8% year on year (2025Q2 approximately RMB 4.12 billion), with a marked decline in the second quarter; the East Money F9 page marks the company as a 2026 interim report profit warning, while the interim report summary itself gives no explanation.

The company's latest period (2026H1) revenue was RMB 4.5298 billion (-22.19% year on year), net profit attributable to parent RMB 40.59 million (-76.63% year on year), and net profit attributable to parent after deducting non-recurring items RMB 22.72 million (-84.90% year on year), representing a sharp decline in performance. Back-calculating from H1, 2026Q2 standalone revenue was approximately RMB 2.687 billion, about -34.8% year on year, showing a marked decline in the second quarter that contrasts with 2026Q1 revenue growth of +8.37% year on year, an anomalous rhythm worth noting. 2025 annual report revenue was RMB 13.910 billion (-2.59% year on year), net profit attributable to parent RMB 227.0 million (-58.58% year on year), and net profit attributable to parent after deducting non-recurring items RMB 158.5 million (-5.31% year on year), with revenue actually growing 13.78% after excluding the deconsolidation factor of Aerospace Electromechanical. Profitability is at a near-5-year low (net profit attributable to parent of RMB 525 million/548 million/227 million in 2023-2025, and only RMB 41 million in 2026H1). In terms of operating quality, 2026H1 net operating cash flow was negative RMB 2.3459 billion and full-year 2025 was negative RMB 1.0331 billion, with continuous large net outflows not synchronized with income statement improvement, and this should be separately flagged as a risk item. Scope note: hx168 shows 2026H1 net profit of RMB 29.0685 million (including minority interest scope), lower than the RMB 40.589 million attributable to parent, meaning minority interest was negative, and net profit and net profit attributable to parent should not be mixed when cited.

3.2 Earnings Forecasts

Forecast data come from multiple scopes and the vintage must be noted: A) East Money ProfitForecast (research report excerpt statistics, snapshot around September 2026, including 8 institutions): 2026E revenue RMB 15.71 billion/net profit attributable to parent RMB 357.4 million/EPS RMB 0.1088/ROE 1.75%; 2027E revenue RMB 18.12 billion/net profit attributable to parent RMB 467.9 million/EPS RMB 0.1425/ROE 2.19%; 2028E revenue RMB 20.86 billion/net profit attributable to parent RMB 616.3 million/EPS RMB 0.1850/ROE 2.84%; net assets per share 2026E RMB 6.37/2027E RMB 6.47/2028E RMB 6.59 (6 institutions). Another snapshot (7-institution scope): 2026E net profit attributable to parent RMB 373.4 million/EPS RMB 0.1143; 2027E RMB 486.6 million/RMB 0.1486; 2028E RMB 649.0 million/RMB 0.1943—indicating that the trailing six-month average has continued to be slightly revised down as new research reports are added, and the date of capture and number of sample institutions must be stated when used. B) Individual research reports (within 2026, from newest to oldest): Soochow Securities' "2026 Interim Report Review" sharply cut its 2026-2027 net profit attributable to parent forecasts from RMB 790 million/RMB 900 million to RMB 250 million/RMB 340 million, added 2028 at RMB 390 million, corresponding to PE of approximately 192/140/122x, and downgraded the rating from Buy to Accumulate (this research report did not directly indicate the institution name in the search results; the source is the research report aggregation page sdyanbao.com, and the number of institutions must be verified against the original text, and it appears only in a single source without cross-verification); Guosen Securities (initiated coverage on 2026-05-17 with Accumulate/Outperform) 2026/2027/2028 EPS RMB 0.10/0.14/0.18; Changjiang Securities (first provided figures on 2026-04-06, updated 05-16) 2026-2028 net profit attributable to parent RMB 448 million/662 million/1.034 billion, +97.24%/+47.84%/+56.28% year on year, EPS RMB 0.14/0.20/0.31 (corresponding to PE of 191.76/129.71/83.00x for its reporting periods); Everbright Securities EPS RMB 0.11/0.12/0.14; Industrial Securities (Accumulate on 2026-04-28) 2026 net profit RMB 331 million, EPS RMB 0.10/0.12/0.14; China Galaxy EPS RMB 0.09/0.11/0.13; China Merchants Securities (Accumulate on 2026-04-10) 2026 net profit RMB 370 million, EPS RMB 0.11/0.14/0.17. C) Earlier (already covered by subsequent downward revisions, for comparison only): Guotai Haitong on 2025-12-16 expected 2025-2027 net profit attributable to parent of RMB 570 million/798 million/846 million; Guojin Securities on 2025-10-18 expected 2025-2027 revenue of RMB 15.336 billion/19.307 billion/24.112 billion, net profit attributable to parent of RMB 586 million/815 million/1.075 billion, and EPS RMB 0.18/0.25/0.33. D) Hithink iFinD summary (2026-04-27, covering 11 institutions in the preceding six months): 2026 net profit forecast range RMB 290 million–866 million, average RMB 644 million (the average is far above the current East Money 8-institution scope of RMB 357 million, indicating that a large number of old research reports had not yet reflected the 2026H1 decline). Uncertainty points: old research reports were not updated, and the Hithink 2026-04 summary's 2026 average net profit of RMB 644 million lags significantly behind the actual 2026H1 (only RMB 41 million); comparing annualization of the interim report (approximately RMB 80-100 million) with the full-year consensus of RMB 350 million implies an assumption of significant sequential improvement in H2, which is a key uncertainty; sample and timestamps are inconsistent, with East Money's trailing six-month average at different capture times showing 7 institutions and 8 institutions respectively, EPS RMB 0.1143 vs RMB 0.1088, and net profit attributable to parent RMB 373.4 million vs RMB 357.4 million, so any average must be stated as of date X and N institutions before use.

3.3 Valuation Levels and Institutional Ratings

As of the close on 2026-09-11, the closing price was RMB 14.55 (versus previous close of RMB 14.56, -0.07%), with a daily high of 14.75 and low of 14.10, turnover rate 2.15%, and trading value RMB 1.021 billion; total market capitalization/tradable market capitalization RMB 48.005 billion (3.299 billion shares fully tradable). Valuation scope: P/E (static, based on 2025 annual report EPS of RMB 0.0688) approximately 211.5x; P/E (TTM, based on TTM EPS of approximately RMB 0.0285) approximately 511x (Cailianshe 511.36, Sina 511.34, aastocks 09-09 scope 516.43); dynamic P/E approximately 591x (based on interim report annualization scope, East Money 591.35, stcn 591.37); price-to-book (PB) approximately 2.30–2.31x (net assets per share RMB 6.322). Forward PE: based on East Money consensus EPS (2026E RMB 0.1088/2027E RMB 0.1425/2028E RMB 0.1850) and RMB 14.55, approximately 134/102/79x; based on the 7-institution scope of RMB 0.1143/0.1486/0.1943, approximately 127/98/75x. Comparable reference: another source quoted on September 4, 2026 corresponded to a market capitalization of RMB 47.543 billion; aastocks' 2026-09-10 scope P/E (static)/TTM was 211.01/520.00x—differences across sources arise from snapshot timing and scope, not data contradiction. Valuation scope note: the differences among PE(TTM) of 511x, static PE of 211x, and dynamic PE of 591x all come from the denominator scope, not conflicts among data sources; PB of 2.30x is currently the relatively most stable valuation anchor. Target price dispersion is extremely large (RMB 12.24–27.00), and some high target prices come from old research reports from end-2025/first half of 2026 that did not reflect the 2026H1 performance stall, so averages should not be used directly; any narrative of an average target price must simultaneously disclose the sample date. Conclusion: because profitability is at a near-5-year low (net profit attributable to parent of RMB 525 million/548 million/227 million in 2023-2025, and only RMB 41 million in 2026H1), static and TTM valuations are at extremely high levels, and forward valuation remains far above the conventional range for manufacturing; PB of 2.30x is relatively moderate, mainly supported by RMB 20.8 billion of net assets and the logic of military asset revaluation. Risk note: 2026H1 operating cash flow was negative RMB 2.346 billion and full-year 2025 was negative RMB 1.033 billion, with continuous large net outflows not synchronized with income statement improvement, and this should be separately flagged as a risk item in valuation judgments; the downward revisions in the Soochow Securities interim report review appear only in a single source without cross-verification; in the Stockstar institutional first-coverage table, the report-date closing price for Guosen Securities' 2026-05-17 research report is recorded as RMB 23.56, which clearly does not match the public price path (approximately RMB 11 in October 2025 and approximately RMB 14.5 in September 2026), suspected to be a row/column error in the aggregation table, and should not be cited.

IV. Recent News and Announcements

4.1 Formal Asset Swap Plan Approved by the Board (Lin 2026-040)

On July 27, 2026, the company held the seventh meeting of the 2026 board of directors, which approved by written communication voting the "Proposal on Determining the Asset Swap Plan and Signing Related Agreements," announcement number Lin 2026-040, disclosed on 2026-07-28/29. Voting result: 3 votes in favor, 0 against, 0 abstentions, 6 recusals (related directors Jiang Liang, Wang Haitao, Yan Junwu, Dai Limin, Yang Yu, and Chen Jianguo recused). The formal plan uses July 31, 2025 as the valuation base date, and transfer prices are determined based on state-owned asset filed valuation results: ① Controlled subsidiary Beijing Aerospace Times Optoelectronics Technology Co., Ltd. will swap its 100% equity in Beijing Aerospace Xinghua Technology Co., Ltd. (valued at RMB 645.0050 million) for 58% equity in Xi'an Taiyi Electronics Co., Ltd. held by Xi'an Microelectronics Technology Institute (valued at RMB 649.7061 million); the difference of RMB 4.7011 million will be made up in cash by Times Optoelectronics to Xi'an Microelectronics Institute. ② Controlled subsidiary Shanghai Aerospace Electronics Co., Ltd. will swap its deep space exploration business operating assets (RMB 59.5915 million) for related technical transformation assets of Shanghai Scientific Instrument Factory Co., Ltd. (RMB 57.7410 million); the difference of RMB 1.8505 million will be made up in cash by Shanghai Scientific Instrument Factory to Shanghai Aerospace. After completion, Times Optoelectronics will become the controlling shareholder of Xi'an Taiyi (holding 58%), and Xi'an Taiyi Electronics will be included in the company's consolidated financial statements; Aerospace Xinghua will become a wholly owned subsidiary of Xi'an Microelectronics Institute, an institution managed by the controlling shareholder Aerospace Times Company, and will no longer be included in the company's consolidated financial statements. As of the 2026-07-27 announcement, this swap had completed the approval procedures of the industry competent department and the state-owned (institution) asset management department, as well as the valuation filing procedures of the state-owned asset management department; the transaction did not reach the shareholders' meeting review threshold stipulated in the company's articles of association and did not need to be submitted to the shareholders' meeting for review.

4.2 Follow-up Progress on the Asset Swap (SSE e-Interaction Response)

On 2026-09-07, the company replied to investors on SSE e-Interaction that the formal asset swap plan had been approved by the seventh meeting of the 2026 board of directors, and that agreement signing and asset delivery would subsequently be advanced in accordance with regulations; on 2026-09-10, it replied again that "after the asset swap is completed, the financial statements of Xi'an Taiyi Electronics Co., Ltd. will be included in the company's consolidated financial statements."

4.3 Early Planning Scope of the Asset Swap (Differs from the Formal Plan, Note)

On 2025-09-12, the company announced plans to promote an asset swap, with the scope at that time being to inject 67% equity in Xi'an Taiyi Electronics and related technical transformation assets of Beijing Institute of Telemetry Technology and Shanghai Scientific Instrument Factory; and to divest 100% equity in Aerospace Xinghua, Aerospace Long March Rocket cryptography and information security business assets, and assets related to Shanghai Aerospace's deep space exploration business; preliminary estimates put the book value of assets to be injected at approximately RMB 800 million-1 billion. This scope comes from a Guojin Securities 2025-10-17 research report (a single brokerage's restatement of the announcement) and is inconsistent with the formal July 2026 plan's 58% equity and valuation of RMB 649.7 million; the formal plan no longer includes "Beijing Institute of Telemetry Technology technical transformation assets" and "Long March Rocket cryptography information security business." The formal announcement (Lin 2026-040) should prevail, and the planning-stage figures are for background reference only.

4.4 2026 Interim Results (Released 2026-08-25, Disclosed August 26)

Operating revenue RMB 4.530 billion, -22.19% year on year; net profit attributable to parent RMB 40.5892 million, -76.63% year on year; net profit attributable to parent after deducting non-recurring items RMB 22.7240 million, -84.90% year on year; total profit RMB 56.1294 million, -71.71% year on year; basic earnings per share RMB 0.012, -77.36% year on year. Q2 standalone: revenue RMB 2.687 billion, -34.80% year on year, +45.82% quarter on quarter; net profit attributable to parent RMB 9.3112 million, -93.53% year on year, -70.23% quarter on quarter. Gross margin +1.34pct year on year to 21.85%, and net sales margin -2.03pct year on year to 0.64%. Company/research report attribution: product delivery progress falling short of expectations and pricing declines on certain products.

4.5 2026 First-Half Earnings Pre-Announcement (Single-Source Restatement, Must Be Flagged)

Media headlines indicate the company had pre-announced that "2026 first-half net profit attributable to parent is expected to decline 75.24%–79.27% year on year" (mentioned on Jiemian News/Youlianyun pages; the original pre-announcement announcement number was not obtained, and this is a single-source restatement that must be flagged).

4.6 2025 Annual Report and Dividend (Annual Report Summary Disclosed 2026-03-28)

Proposed cash dividend of RMB 0.21 per 10 shares (tax included) to all shareholders, totaling RMB 69,285,286.01 (based on total share capital of 3,299,299,334 shares), with annual cash dividends accounting for 30.53% of consolidated net profit attributable to parent; no capital reserve conversion. The auditor was changed to Zhongzheng Tiantong Certified Public Accountants (Special General Partnership), which issued a standard unqualified opinion (note: the accounting firm listed on the etnet data page is "Zhongxingcai Guanghua," which is old information). Inference (not officially directly disclosed, use cautiously): back-calculating from dividend amount/30.53%, 2025 net profit attributable to parent was approximately RMB 227 million, i.e., a sharp year-on-year decline (2024 was RMB 548 million). East Money Baike tags include "2025 annual report profit warning," consistent with this direction. The 2025 main business composition shows full-year revenue of approximately RMB 13.91 billion (aerospace supporting RMB 9.276 billion + system equipment RMB 2.302 billion + electromechanical components RMB 1.293 billion + technology applications RMB 942.9 million + other RMB 96 million), far below 2024's RMB 14.28 billion—consistent with the "deconsolidation + profit warning" logic, but this revenue breakdown comes from East Money's main business composition page and has not been checked item by item against the formal annual report.

4.7 Management Change: Appointment of Vice President and CFO (Lin 2026-050, Lin 2026-051)

On 2026-09-04, the ninth meeting of the 2026 board of directors (by communication, 9 expected to attend and 9 actually attending) approved the "Proposal on Appointing the Company's Vice President and CFO," appointing Wei Haiqing (born February 1972, master's degree, senior accountant, formerly CFO of Beijing Aerospace Guanghua Electronic Technology Co., Ltd. and deputy director of the finance department of China Aerospace Times Electronics Co., Ltd.) as Vice President and CFO, with a term until the expiration of the 14th board of directors; President Hu Chenggang no longer acts as CFO. Announcement numbers Lin 2026-050 (board resolution) and Lin 2026-051 (appointment announcement), disclosed on 2026-09-05 on China Securities Journal/Shanghai Securities News/Securities Times/SSE website.

4.8 2025 Second Extraordinary Shareholders' Meeting Resolution (Lin 2025-066)

On 2025-10-15, the 2025 second extraordinary shareholders' meeting was held (announcement number Lin 2025-066, disclosed October 16), with 1,630 shareholders and proxies attending, representing 1,315,772,174 voting shares, or 39.8803%. All proposals passed: ① by-election of directors of the 13th board of directors; ② appointment of the 2025 financial report audit institution; ③ appointment of the 2025 internal control audit institution; ④ adjustment of the construction location and construction content of the intelligent integrated electronic information system industrialization project (this is a fundraising project change and is worth tracking subsequently).

4.9 Registration of Ultra-Short-Term Financing Bonds (No More Than RMB 6 Billion)

The 2024 annual shareholders' meeting approved an application to register and issue no more than RMB 6 billion of ultra-short-term financing bonds; on 2025-10-31, the National Association of Financial Market Institutional Investors accepted the registration and issued a "Notice of Acceptance of Registration" (Zhongshixiezhu [2025] SCP315), and an announcement was published on 2025-11-04.

4.10 Completion of Repayment of the 2026 Third Tranche of Ultra-Short-Term Financing Bonds (Lin 2026-052)

The 2026 third tranche of ultra-short-term financing bonds was issued in August 2026 (announced 2026-08-08) and has recently been fully repaid; announcement number Lin 2026-052, disclosure date 2026-09-12. On the same day, financial media (East Money, Jiemian News, Sina, Stockstar) all reported it, dated 2026-09-11.

4.11 Matters Not Covered/Requiring Further Verification (Important Limitations)

1. Share buybacks: Multiple searches did not find any share buyback or buyback progress announcements by Aerospace Electronics in 2025–2026; no announcements of increases or decreases in holdings by major shareholders/directors and senior management were found either. This cannot be used to conclude "none"—due to the search step limit for this exercise, targeted searches such as "600879 share buyback" and "600879 shareholder reduction 2026" were not completed, and it is recommended to check the SSE announcement list page. 2. Main-force fund flows and Dragon-Tiger List: these fall under angle 4 (technical/fund flow), not checked this time. 3. Policy/industry events (commercial aerospace, low-orbit satellite internet constellation, low-altitude economy, equipment unmannedization, etc.) were seen only in brokerage research report opinion statements (Guojin Securities 2025-10-17, Soochow Securities 2026-08-31, Guosen Securities 2026-09-04), with no new policy announcements directly tied to the company; the research reports are all single-brokerage views, not a multi-brokerage consensus. 4. Scope conflict: the injection ratio for Xi'an Taiyi Electronics "67% (2025-09 planning scope)" vs "58% (2026-07 formal plan)," with the formal announcement to prevail. 5. Data timing note: all prices are quote-page snapshots (etnet shows market capitalization of approximately RMB 78.95 billion, net assets per share RMB 6.268, EPS RMB 0.166, without a clear date, suspected to be an old snapshot), and the main text avoids directly citing them as the "latest price."

V. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Aerospace Electronics closed at RMB 14.55, with the share price entering a phase of sideways repair after a rapid decline in mid-to-late August. The closing price is slightly above MA5 and MA10 but still below MA20; MA100 and MA200 are above the current price, indicating that the short-term repair has not yet transformed into a clear medium-term trend reversal. Bollinger Bands show the share price slightly below the middle band, MACD is near the zero axis, and RSI is in a neutral zone of approximately 50–55. Recent trading value and turnover rate have rebounded somewhat from early September, but main-force funds recorded cumulative net outflow of approximately RMB 172 million over the past 5 trading days, and fund continuity remains insufficient.

5.3 Short-Term Outlook (Next Week, Scenario Deduction, for Reference Only)

⚠️ Risk Note: The following content is merely a subjective scenario deduction based on the September 11, 2026 closing data, historical prices, and technical indicators. It does not constitute investment advice, nor does it constitute a deterministic forecast of future prices.

① Key Technical Levels

② Next-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Sideways consolidation (relatively higher weight, about 60%; a subjective heuristic weight based on the current technical and fund-flow structure, not a statistical probability): price range approximately RMB 14.20–14.90. Trigger conditions include the share price fluctuating around RMB 14.2–14.7, trading value maintained at approximately RMB 600 million–1.1 billion, MACD continuing to hover near the zero axis, and no sustained large rise or fall in the military sector. Key focus is on resistance near RMB 14.7 and support at RMB 14.2–14.4.
• Weaker downside (medium weight; a subjective scenario weight, not a statistical probability): price range approximately RMB 13.80–14.30. Trigger conditions include an effective close below RMB 14.2, a single-day increase in trading value but a medium bearish candlestick close, main-force funds recording net outflow for two to three consecutive trading days, or continued weakness in the military sector and the Shanghai Composite Index. If RMB 13.8 is also broken on volume, the estimated Bollinger lower band area of approximately RMB 13.4 may be further observed.
• Rebound strengthening (low-to-medium weight; a subjective scenario weight, not a statistical probability): price range approximately RMB 14.80–15.50. Trigger conditions include an effective close above RMB 14.75–14.80, trading value continuously expanding to above RMB 1.2 billion, simultaneous strength in military equipment, commercial aerospace, or unmanned systems sectors, and main-force funds shifting from net outflow to continuous net inflow. If it breaks above RMB 15.1 on volume, the technical observation space may open to RMB 15.3–15.5; if volume is insufficient, the risk of a pullback after a spike still needs attention.

③ Fund and Liquidity Background

Turnover rate over the past 5 trading days was approximately 1.41%–2.15%, with trading value of approximately RMB 665 million–1.021 billion, overall at a moderately active level and not that of an extremely low-liquidity small-cap stock. Current volume is clearly below the rapid decline phase of August 19 and August 20. Institutional holdings data are as of June 30, 2026, with main-force institutions holding 38.46% of tradable A shares, a slight decrease from the end of 2025, and more funds reducing than increasing positions; this data is more than two months lagged and cannot be used to directly judge the real-time institutional position on September 11, 2026. The latest public summary failed to provide reliable top ten shareholders' shareholding ratios, so top ten shareholders concentration cannot be judged on that basis.

If in the coming week single-day trading value can continuously reach above RMB 1.2 billion while the closing price stands above RMB 14.75–14.80, this can serve as a verifiable observation signal that short-term funds are entering and breakout validity is strengthening; if volume expands but the price cannot hold above RMB 14.7 and closes with a long upper shadow or a bearish candlestick, it is closer to high-level turnover than a trend breakout.

④ Points to Watch (Observation Ideas Only, Not Trading Instructions)

• Observe whether the RMB 14.20–14.40 area can provide effective support, and whether it retests the RMB 13.80–14.00 area after a breakdown. The above are observation ideas, not trading instructions.
• Observe whether the RMB 14.70–15.10 resistance zone can be effectively broken with expanded trading value. The above are observation ideas, not trading instructions.
• Observe whether MACD can turn from near the zero axis to sustained positive values, and whether RSI can stabilize above 50. The above are observation ideas, not trading instructions.
• Observe whether single-day trading value can continuously reach above RMB 1.2 billion and appear simultaneously with a price breakout above RMB 14.75–14.80. The above are observation ideas, not trading instructions.

The above scenario deduction is based on the September 11, 2026 closing data and historical prices and technical indicator calculations. Short-term share prices will also be disturbed by multiple factors such as news, fund flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future movements, and do not constitute buy or sell recommendations. Please make independent judgments in light of the latest market information and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

Aerospace Electronics falls within the defense & military—aerospace equipment/military electronics subsector; the aerospace industry in which the company operates includes the R&D, manufacturing, launch, and operation of rockets, satellites, spacecraft, and other aerospace vehicles; unmanned system equipment is classified by the company as a national strategic emerging industry, with military/civilian demand expected to grow severalfold during the 15th Five-Year Plan period (company scope, 2026 interim report, a company view rather than third-party data). The industry competitive landscape is mainly system-internal competition among research institutes within the military system.

6.2 Competitive Landscape

• Competitors are mainly research institutes under aviation, electronics, ordnance, and other groups that also belong to the military system, rather than market-oriented private enterprises (self-media analysis, for reference only).
• The company maintains domestic leadership and a relatively high supporting share in segments such as inertial and navigation, TT&C communications, and electromechanical components (company scope); its status as the only listed platform of the Ninth Academy forms a national-team positioning advantage.
• Caution needed: some self-media/marketing accounts claim Aerospace Electronics has a 70%+ market share in spaceborne computers/TT&C/inter-satellite laser communications, unsupported by primary sources; this is an unverified marketing scope and is not recommended to be accepted as definitive figures.
• The severalfold growth expectation on the industry demand side (unmanned systems) comes from company scope (2026 interim report) and is a company view rather than third-party data.
• Comparable company selection is based on the Shenwan Hongyuan 2024-11-11 research report scope, supplemented by commonly used market benchmarks.

6.3 Main Competitors

Among comparable companies, Aerospace Electronics is strong in its system-internal positioning as the only listed platform of the Ninth Academy of CASC and in supporting capabilities in spaceborne TT&C/inertial navigation/electromechanical components, while also using unmanned systems as a second growth curve; Haige Communications leans toward civilian military participation/under CETC, stronger in satellite communications, satellite navigation, and ground TT&C station general contracting but weaker in core spaceborne supporting than Aerospace Electronics; Xindong Lianke focuses on inertial navigation/high-end MEMS and star trackers, Tianao Electronics focuses on satellite navigation and time-frequency, and Guobo Electronics focuses on T/R modules and active phased arrays. Market capitalization comparison (2026-09-11, source stockstar military informatization sector page) is Aerospace Electronics approximately RMB 48.005 billion, Guobo Electronics approximately RMB 42.794 billion, and Haige Communications approximately RMB 25.398 billion. The above benchmarking relationships and market capitalization data come from brokerage research reports and third-party quote pages, not first-hand company disclosure, and timing and scope differences should be noted when used.

VII. Risk Warnings

• Performance decline and delivery pace risk: In the first half of 2026, revenue fell 22.19% year on year and net profit attributable to parent fell 76.63% year on year, with the second-quarter declines in revenue and net profit attributable to parent further widening; if product delivery progress continues to fall short of expectations, full-year performance recovery may be below market forecasts.
• Accounts receivable, inventory, and cash flow risk: In the first half of 2026, accounts receivable were RMB 10.595 billion, inventory accounted for 49.33% of total assets, and net cash flow from operating activities was negative RMB 2.346 billion; if downstream collections continue to lag or inventory digestion slows, the company may continue to bear relatively high financing and capital occupation pressure.
• Customer concentration and bargaining power risk: The company is mainly oriented toward prime contractors and system-internal customers; some data scopes show that 2025 top five customer sales accounted for 80.30%, with CASC alone accounting for 56.65%, but the related customer concentration data show obvious differences among non-primary sources; regardless of the final scope, customer concentration and cost-review and price-cap mechanisms may limit improvements in revenue quality and profit margin.
• Profitability risk: The company is in the aerospace industry supporting segment, and suppliers and downstream prime contractors respectively impose list management, designated suppliers, price limits, and cost-review constraints; in 2025, the gross margin of system equipment products fell to 13.94% and net margin was approximately 1.6%–1.8%; product price declines or cost fluctuations may quickly transmit to the profit side.
• Asset swap execution risk: The formal plan intends to inject 58% equity in Xi'an Taiyi Electronics and include it in consolidated financial statements, but as of the relevant responses, agreement signing and asset delivery still need to be advanced; the formal asset swap plan differs from the early planning scope, and the transaction completion time, integration effect, and actual contribution to financial statements remain uncertain.
• Valuation and earnings