Incident description

In order to strengthen unmanned technology exchanges and accelerate industrial transformation and expansion of the industrial chain, Inner Mongolia First Aircraft plans to jointly increase the capital of Aisheng Group with related companies such as Zhongbing Investment, North China Company, and the unrelated party, Xi'an Technological University Asset Company. The company plans to invest 0.1836 billion yuan with its own capital. After the capital increase is completed, the company will hold 4.27% of Aisheng Group's shares, and 52.15% of the shares in the target company.

Event reviews

Aisheng Group is one of the earliest units engaged in the development and production of drone systems in China, and has excellent technology and innovation capabilities. The Aisheng Group currently has a full set of qualifications to develop and produce drone systems, and has formed a relatively sound product lineage. The order scale of the domestic military drone market is growing year by year. As a leading enterprise in the domestic military drone field, Aisheng Group is expected to obtain significant growth opportunities as the market size continues to grow. At the same time, Aisheng Group has been in the military trade business for many years. With its technical advantages and market competitiveness in the drone field, military trade will become an important part of its economic growth.

Build a benchmark enterprise for unmanned combat in open space. In recent local wars represented by the Russian-Ukrainian conflict, the role of unmanned equipment on the battlefield continues to expand, and unmanned combat forces are accelerating the evolution of the war pattern. Inner Mongolia's participation in Aisheng Group is conducive to deepening the application of the company's ground equipment and unmanned intelligent docking systems, opening up an effective path for technological innovation breakthroughs, and accelerating the company's transformation from traditional machinery manufacturing to informatization, unmanned, and intelligent. In the future, it can provide strategic support for the company's ground product equipment to grow.

Investment advice

The company's 2024-2026 EPS is expected to be 0.51\ 0.56\ 0.62 respectively, corresponding to the company's closing price of 8.78 yuan on December 9, and the 2024-2026 PE is 17.2\ 15.7\ 14.1, respectively, maintaining the “Increased holdings - A” rating.

Risk Alerts

Foreign trade deliveries fell short of expectations; domestic demand orders fell short of expectations.