Three major capital platforms for aero-engine construction

Aviation Power announced on the evening of August 22 that the shares will be the price, the acquisition of AVIC Industrial Group, Western Airlines Group, Liyang, Huarong assets and Oriental assets to buy aviation engine business-related assets. If the reorganization is completed, AVIC Industrial group aero-engine three major capital platform framework will be basically revealed. Among them, the aero-engine is the Aeroengine mainframe and parts manufacturing platform, the St aerospace will become an aero-engine control system integration platform, the technology is positioned as an aero-engine transmission asset integration platform.　　The three platforms have their own advantages, but the aero-engine is undoubtedly the most important platform with the highest status, the largest scale and the monopoly status. The overall listing of the company's engine business is as follows: The Western Airlines Group has the assets and liabilities related to the aviation engine business, 100% of the South Company, the Liyang Aviation power 100% and the three-leaf company 80% Equity.　　The issue price is 23.93 yuan/share, the number of shares is expected to be issued 175 million shares, the underlying assets of the pre-valuation of 4.12 billion yuan. Previously, the main products of aero-power include high-power gas turbines, which are used for aircraft propulsion. After the completion of the major asset reorganization, the aviation power will be based on the original products of the new medium-thrust vortex-jet propulsion plant, the production capacity of the helicopter propulsion plant.　　At the same time, the aero-engine components of foreign trade subcontracting production business product type and scale will be further expanded. The assets reorganization, the West Airlines Group intends to inject the assets mainly with the aero-engine research assembly, commissioning business and with the failure of acceptance of technical transformation projects related assets.　　In the earlier reorganization, the group has injected aviation power into the aerospace industry and the necessary ancillary facilities for mass production of aero-engines (including derivatives), subcontracting of aero-engine parts and production of non-aviation products. As of June 30 this year, the Western Airlines Group intends to inject about $2.025 billion in total assets, with the assets to be injected into the debt of about 2.017 billion yuan, net assets of about 8 million yuan. As a result, the aviation engine assets of the Western Airlines Group have all been injected into aviation power.　　In addition, the Western Airlines Group and Liyang companies to develop assets this time also into the aviation power.　　Shenyang dawn or into the next one injected assets the senior researcher Li Sherong, a consultant in the circulation industry, said that the reorganization continued the AVIC industrial group's long-term strategy of "two melts, San Xin, five, trillion", and the future group's aero-engine business will be more competitive. Last October, the St Aerospace announced the reorganization plan, will set the southern aerospace all the assets and liabilities, injection West control company and other aero-engine control systems related to operational assets and liabilities.　　At present, the St Aerospace reorganization part of the assets have been completed handover and transfer, ST Aerospace has also been renamed as Avic Power Control Co., Ltd. And as early as April this year, the technology also disclosed the reorganization plan, intends to acquire the company's aviation engine related business assets through directional additional investment and invest in aero-engine and gas turbine brake, blades, sheet andHeat Meter Specialization Center construction (first phase) three projects. As the actual control person of aero-power, AVIC industry has six aero-engine manufacturing enterprises, namely aviation power, Shenyang Liming, Guizhou Liyang, Dong ' an company, Cheng FA Group and South Company.　　Everbright Securities industry analyst Lu Zhou that, in the aviation power needs and possible premise, does not rule out the aviation industry will be owned by other companies of aero-engine bulk manufacturing related assets and operations into aviation power. From the current point of view, the issuance of shares to purchase assets completed, AVIC Industrial Engine Company's best assets in Shenyang Dawn has not yet entered the listed companies. No accident, the next step into Shenyang Dawn is a big probability event, the pace of integration will be accelerated, but the specific timing and way is more difficult to grasp.