Event

At 20:43 in the evening on November 3, 2016, long March 5, China's largest thrust new generation carrier rocket, was blasted off from the China Wenchang Space launch site. About 30 minutes later, the load assembly was successfully separated from the rocket and entered the scheduled orbit. The long March 5 carrier rocket was successfully launched for the first time.

Analysis.

China's aerospace has gradually stepped into the ranks of great powers: the long March V carrier rocket is a large carrier rocket with the largest take-off scale, the largest technical span and the largest carrying capacity developed by our country. The long March 5 rocket has a takeoff mass of about 870 tons and has a carrying capacity of 25 tons in low-Earth orbit and 14 tons in geosynchronous transfer orbit, which is more than 2.5 times higher than that of the long March 3B rocket in service. The new generation of long March 5 carrier rockets, which are mainly powered by liquid oxygen and kerosene engines, have the same carrying capacity as the most advanced foreign carrier rockets such as "Arian 5", "Cosmos 5" and "Delta 4". Changwu has made breakthroughs in design, materials, technology, manufacturing and other aspects, and its successful launch marks China's transformation from a space power to a space power. at the same time, it has laid a solid foundation for the follow-up manned space station, the third phase of the lunar exploration project, and Mars exploration missions.

Liquid rocket engine is gradually becoming a system: as the largest thrust carrier rocket in China, the State Council approved the development of the project in 2006. The biggest highlight of the Chang 5 is that it has a powerful green and environmentally friendly new engine-- three new types of rocket engines, namely, the 50-ton hydrogen-oxygen engine YF-77 established in 2001, the 9-ton expansion cycle hydrogen-oxygen engine established in 2006, and the 120t liquid oxygen kerosene engine YF-100 established in 2000. YF-100 is a new type of power plant with the largest single tube thrust, the most advanced technology and the most wide application prospect in China, which fills the gap in the technology of supplementary combustion cycle engine in China, and realizes the leap from conventional toxic propellant open cycle liquid propulsion technology to green non-toxic propellant closed cycle liquid propulsion technology. The new rocket engine is a pioneering achievement made by the researchers of the sixth Institute of Aerospace Science and Technology Group after more than 20 years of innovation.

The performance growth of the controlling shareholders during the 13th five-year Plan period is clear: the sixth Academy of Aerospace Science and Technology Group, the controlling shareholder of Aerospace Power, monopolized the production and manufacture of liquid engines for rockets in China. This year, the number of aerospace launches in China will exceed 20 for the first time, making it the "densest launch year in history", which is directly beneficial to the efficiency of the sixth Aerospace Academy. During the 13th five-year Plan period, China's planned annual rocket launch will exceed 30, and the annual launch will reach 40 at the end of the 13th five-year Plan. At the same time, the price of the two new non-toxic engines will be improved. In addition, the development of heavy-duty liquid engine is also expected to set up a project. We believe that the growth of the sixth Aerospace Academy during the 13th five-year Plan period is certain, and the market space is also clear.

Investment proposal in 2008, under the strong promotion of Lei Fanpei, chairman of the first Aerospace Science and Technology Group and former president of the sixth Academy, the Aerospace Science and Technology Group supported the sixth Academy, the "aerospace liquid power national team", to become bigger and stronger by integrating the aerospace liquid power assets of the first institute and the eighth institute into the sixth institute. Eight years later, industrial integration has basically matured, and capital operation has become an integral part of the topic. We expect to achieve a breakthrough in aerospace engine asset securitization in the near future. Aerospace Power, as the only platform for aerospace engine asset integration, has a broad space. From a long-term point of view, the target of the 13th five-year Plan of the sixth Aerospace Academy is 34 billion yuan in annual income and 1.7 billion yuan in annual profits, and the market capitalization target after asset integration should be more than 50 billion yuan. We give Aerospace Power a "buy" rating, with a target price of 40 yuan in the next six months.