The trillion-dollar aircraft market is about to take off, and many listed companies have become suppliers

The trillion-dollar aircraft market is about to take off, and many listed companies have become suppliers: positive impact is expected

　　The domestic large aircraft C919 is approaching the forensics.

　　On September 15, at the opening ceremony of the 2022 World Design Capital Conference, Wu Guanghui, academician of the Chinese Academy of Engineering, chief scientist of Commercial Aircraft Corporation of China, and chief designer of the C919 large passenger aircraft series, said at the scene, "On August 1, China COMAC announced that it has completed all the pre-certification flight test tasks for the C919. This year, it will obtain the civil aviation airworthiness certificate and deliver it to its first customer, China Eastern Airlines.”

　　The C919 large passenger aircraft is a large civil jet aircraft developed by my country and has independent intellectual property rights. It adopts a single-aisle narrow-body layout, has 158 to 168 seats, and has a range of 4,075 to 5,555 kilometers. It is the most common Airbus in the international aviation market. 320 and Boeing 737 models are of the same level.

　　According to COMAC's official website, the C919 has received a total of 815 orders from 28 customers. In March last year, China Eastern signed a C919 large passenger aircraft purchase contract with COMAC, and the first batch of 5 aircraft was introduced.

China Eastern Airlines is the first customer of C919 in the world.

According to China Eastern's 2022 semi-annual report, China Eastern will introduce a C919 in the second half of this year.

　　Several listed companies said they expected to have a positive impact on performance

　　Commercial Aircraft Corporation of China announced on August 1 that the domestically produced large aircraft C919 has completed the certification test flight.

Since August, a number of large aircraft concept stocks have announced on the investor interactive platform the company's participation in the C919 project and the positive impact of the future C919's airworthiness certificate on the company.

　　Among them, Aviation Development Control (000738.SZ) said that with the advancement of the localization of large aircraft power, it is expected to have a positive impact on the company's performance.

Lianshi Aviation (000697.SZ) said that the acquisition of the C919 airworthiness certificate will play a positive role in the company.

　　In terms of specific participation, AVIC Optoelectronics (002179.SZ), Aviation Development Control (000738.SZ), Runbei Aviation (001316.SZ), Brilliant Technology (002296.SZ), Tongda (002560.SZ), Jun Stock (002651.SZ), Sichuan Jiuzhou (000801.SZ) and other companies have indicated on the investor interaction platform to provide relevant products and technologies for C919.

　　Among them, AVIC Optoelectronics provides products for C919 mainly including connectors and equipment racks, etc.; Aeroengine Control is the only supplier of key mechanical and hydraulic actuators for the engine control system of domestic large aircraft; Runbei Aviation provides aviation raw materials and aviation chemicals for the C919 project. and other products; Feitian United, a joint-stock company of Brilliant Technology, is the supplier of the in-flight entertainment system in C919 avionics products; the aviation parts and tooling of Chengdu Hangfei, a subsidiary of Tongda Co., Ltd., are applied to C919; Dekun Aviation, a wholly-owned subsidiary of Lijun Co., Ltd. The processing business includes the processing of some parts and components of the C919 large aircraft; Sichuan Jiuzhou has undertaken the research and development of the C919 cabin broadcast intercom subsystem and flight command vehicle.

　　The West Test (301306.SZ), Huali Chuangtong (300045.SZ) said to provide supporting technical services for the C919.

Among them, West Test provided relevant test services for C919; Huali Chuangtong provided simulation test services for the development of C919, and provided a system verification environment for systems such as cabin, power fuel, information system, and localized display system.

　　Affected by the news that the domestic large aircraft C919 is about to be awarded the airworthiness certificate, the concept stocks of domestic large aircraft have generally risen since September.

　　On the afternoon of September 13, large aircraft concept stocks rose, Tongda (002560.SZ), Runbei Aviation (001316.SZ), Lihang Technology (603261.SH) daily limit, Air Asia Technology (688510.SH) rose more than 8%.

　　On September 14th, large aircraft concept stocks rose sharply during the session. Lihang Technology (603261.SH), Tongda Power (002576.SZ), Runbei Aviation Technology (001316.SZ) and other stocks sealed the daily limit, and AVIC Shenfei (001316.SZ). 600760.SH), AVIC XAC (000768.SZ), and Hangfa Power (600893.SH) all rose more than 2%.

　　On September 15, the large aircraft concept stock index fell slightly, of which Yingliu (603308.SH) and Zhongjian Technology (300777.SZ) rose 1.01% and 0.25% respectively.

　　Large aircraft is expected to drive the trillion-dollar market

　　Aircraft manufacturing has been known as the "crown of modern industry" for a long time.

The domestic large aircraft manufacturing can not only drive the development of the upstream and downstream industrial chains and form the "large aircraft effect", but also inject a boost for the overall improvement of my country's industrial manufacturing capacity.

　　According to COMAC's official website, the C919 adopts the "main manufacturer-supplier" model that is commonly used internationally in the manufacture of mainstream passenger aircraft.

According to statistics, 22 provinces and cities, more than 200 enterprises, 36 universities, and hundreds of thousands of industrial personnel have participated in the development of the C919 large passenger aircraft. 16 material manufacturers and 54 standard parts manufacturers, including Baosteel, have become large-scale Suppliers or potential suppliers of passenger aircraft projects.

　　The body structure of the C919 mainly includes the nose, the front fuselage, the middle fuselage (including the central wing), the middle and rear fuselage, the rear fuselage, the outer wings, the vertical tail, the horizontal tail, the movable surface and other sections. Independently designed, jointly manufactured by AVIC Chengfei, Hongdu, XAC, Shenfei, Hafei, Changfei, Institute of Aerospace Special Materials and Process Technology, Zhejiang Xizi Aviation Industry Co., Ltd., and is in charge of COMAC General assembly.

　　The supply of spare parts takes the form of global bidding. A group of top European and American aviation manufacturing companies such as General Motors, United Technologies, Honeywell, and many professional manufacturing companies under AVIC are important suppliers of aircraft parts.

　　At present, the C919 is equipped with imported engines. The LEAP-X1C engine of CFM International, a joint venture between General Electric of the United States and SNECMA (Safran Group) of France, is the only foreign start-up power unit for the C919 large passenger aircraft.

　　A number of brokerage research reports said that the C919 large aircraft entered the commercial flight stage, marking the beginning of the development of my country's aviation industry toward high-end manufacturing, and the trillion-dollar space nurtured by the domestic large aircraft industry chain may gradually open.

　　According to the research report of Zhongtai Securities on July 14, with the localization of equipment and parts related to electromechanical and avionics systems, the manufacturing system of China's civil aviation large aircraft will truly mature in the cultivated international and domestic markets.

　　The Zhongtai Securities Research Report also pointed out that C919 is expected to drive an average annual market of over 60 billion yuan in the next 20 years.

Assuming that the domestic market share of C919 can be equal to that of Boeing and Airbus in the future, that is, the market share reaches one-third, the annual sales of C919 will be about 104 in the next 20 years.

According to the list price of C919 large aircraft of 99 million US dollars (about 653 million yuan), the average annual sales of C919 is about 67.89 billion yuan. With the continuous improvement of the technical level of the domestic aviation industry, the large aircraft industry chain drives the overall manufacturing level to High-end forging ahead, its high value-added features will gradually show.

Around the off-line commercial and mass production of C919, the large aircraft industry chain as a whole has nurtured hundreds of millions of space.

The average annual market space is 67.91 billion yuan, and the market space in the next 20 years will be 1.36 trillion yuan. This market space does not take into account the high added value driven by the aviation manufacturing industry.