①The commercial aircraft engine composite materials field may become a new business growth point for the company; ②The honeycomb products have passed the certification of Airbus and achieved exports, and the current order volume is stable.
Finance Association News (Reporter Liang Xiangcai) AVIC Aviation High-Technology (600862.SH) is making efforts in the field of commercial aircraft engine composite materials. At the performance briefing held today, the company stated in response to investor questions that the establishment of its subsidiary, Shangfa Composites, will promote the development of the commercial aircraft engine composite materials business and become a new business growth point for the company. Its main business is the manufacturing of resin-based composite materials fan blades and casings for aviation engines.
The company also stated that its subsidiary, Aviation Industry Composites, is participating in the domestic large aircraft project and will accelerate resource allocation in the future to form first-tier supplier capabilities and meet customer needs. The company is actively exploring the international civil aviation market. The honeycomb products have passed the certification of Airbus and achieved exports, and the current order volume is stable.
It is reported that Shangfa Composites is jointly established by Aviation Industry Composites, a wholly-owned subsidiary of AVIC Aviation High-Technology, and Commercial Aircraft Engine Co., Ltd. of China Aviation Engine Group, with Aviation Industry Composites holding a 51% stake.
The company previously stated that the establishment of Shangfa Composites was mainly considered for two reasons: to integrate into the industry chain and regional development, and to quickly form industrialized and scaled manufacturing capabilities. In the next few years, the production volume of Shangfa Composites may increase according to customer requirements and achieve scaled production after supplying commercial products to customers.
Public information shows that Aviation Industry Composites is currently the only unit in China specializing in the research and development engineering of composite materials in the aviation industry. It undertakes the development and key manufacturing technology breakthrough tasks of multiple models such as AG600 and C929, and has made breakthroughs in multiple key manufacturing technologies.
Aviation Industry Composites is the performance pillar of AVIC Aviation High-Technology. In the first half of 2024, this subsidiary achieved a net profit of 0.614 billion yuan, and AVIC Aviation High-Technology had a net profit of 0.604 billion yuan during the same period.
Southwest Securities mentioned in the research report in August that with the production capacity ramp-up of the domestic large aircraft C919, the demand for corresponding composites will be released. In the early stage, large aircraft composite materials were mainly imported, and there is huge potential for the improvement of localization rate. With the localization of large aircraft and raw materials, the demand for domestic composites will be released synchronously.