Event

On August 1, the first gas generator-turbine pump linkage test of the 500-ton liquid oxygen kerosene engine of the heavy carrier rocket developed by the sixth Institute of China Aerospace Science and Technology Group was successful, marking the first milestone victory in the development of this type of engine. it has laid the foundation for the successful completion of the research and development task.

On August 1, CCTV disclosed in a news broadcast that the China Aerospace Science and Technology Corporation is developing a combined power aircraft project, and the cost and threshold for ordinary people to go into space in the future are expected to be greatly reduced. 11 institutes of the sixth Aerospace Academy will participate in the engine part of the work.

Business analysis

The 500-ton thrust engine will meet the requirements of manned lunar landing: according to the China Aerospace News, the 500-ton liquid oxygen kerosene engine is the largest thrust rocket engine under development in China. It is of great significance for supporting the construction of follow-up space stations, manned lunar landings and deep space exploration. The 500-ton liquid oxygen kerosene engine, which was established in 2011, will complete the single thruster combination ignition (coordination) test by October this year, and is expected to achieve a technological breakthrough this year. If the experiment is successful, it will greatly accelerate China's transition from a country with light and medium carrier rockets to a country with heavy carrier rockets.

Air-space combined power is expected to usher in the era of space tourism: according to the Science and Technology Daily, combined-powered aircraft can achieve repeatable space transportation between heaven and earth. When the combined power aircraft takes off, it uses the aero-turbine engine or aspirated rocket engine with high performance under the condition of low speed flight; after reaching a certain speed, it uses the ramjet engine which is suitable for high-speed flight in the atmosphere. These two engines can only be used in the atmosphere, and when an aircraft reaches near space, it needs to use a rocket engine to go into space. With the increasing trend of air-space integration and the increasingly obvious trend of adjacent space development, combined power technology has become the frontier and hot spot of power research, and will be the long-term development goal of space transportation to achieve complete reusability.

The direction of asset securitization of the Aerospace Science and Technology Group is clear: the Aerospace Science and Technology Group has clearly proposed to increase the asset securitization rate from 15% to 45% during the 13th five-year Plan period. The 13th five-year Plan of the sixth Institute proposes that outstanding achievements will be made in the field of asset securitization to achieve listing as a whole. We believe that after the integration of aviation and marine engine assets, there is also a strong expectation of integration of aerospace engine assets of the Aerospace Science and Technology Group, which is expected to take the lead in promoting securitization within the group. Centering on the establishment of the "long March 9" heavy rocket, we expect that the sixth Academy will advance rapidly in asset integration and carrier construction, and Aerospace Power, as the only listing platform of the sixth Academy, will undertake a more important mission. Investment suggestion

Considering the huge high-quality assets and strong restructuring expectations of the sixth Aerospace Institute, from the perspective of market capitalization, 15 billion of the market capitalization of listed companies is unable to carry the huge volume of aerospace engines. 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 30 yuan in the next six months.