On January 7, the Financial Association reported (Reporter Liang Xiangcai) that the long-awaited merger of Chengfei into Zhonghang Electronic Measuring Instruments (300114.SZ) has finally been announced, and the company also plans to change its name to Zhonghang Chengfei Co., Ltd. (hereinafter referred to as Zhonghang Chengfei).

Late at night on January 6, Zhonghang Electronic Measuring Instruments announced that as of the announcement date, the company plans to issue shares to China Aviation Industry Corporation to purchase 100% equity of Chengdu Aircraft Industrial (Group) Co., Ltd. (hereinafter referred to as Chengfei). The asset transfer procedures and related business registration and filing matters have been completed; Chengfei has become a wholly-owned subsidiary of the company.

This reorganization can be traced back to the relevant suspension announcement disclosed by the company in January 2023, which received high attention from the Capital Markets; in February of the same year, after resuming trading following a 10-day suspension, the company experienced eight 20%涨停板.

Of particular concern is that Chengfei is considered the last unlisted star asset under China Aviation Industry Corporation, with impressive performance in revenue and profit. In 2023, it achieved revenue of 74.968 billion yuan, a year-on-year increase of 11.41%, and realized net income attributable to shareholders of 2.423 billion yuan, a year-on-year increase of 84.54%.

According to the share issuance purchase asset and related transaction report released by Zhonghang Electronic Measuring Instruments on July 4, 2024, the transaction price for this reorganization is 17.439 billion yuan, with an issuance price of 8.36 yuan/share, and the number of shares issued is 2.086 billion shares, accounting for 77.93% of the total share capital after the issuance. After the transaction is completed, Zhonghang Electronic Measuring Instruments will add aviation equipment assembly and part manufacturing business and focus on the aviation main business.

The official website of Aviation Industry Chengfei introduces that Chengfei Group was established in 1958, and is a major base for the research, production, and export of aviation weaponry and equipment in China. It is an internationally renowned supplier of large components for civil aircraft, with major products including aviation defense equipment and civil aviation products.

Among them, aviation defense equipment mainly includes fighter jets, with Chengfei having developed and produced series such as J-5, J-7, JF-17, J-10, etc. In the civil aircraft sector, it, along with Chengfei Civil Aircraft Company, is responsible for the research and production of the large passenger aircraft C919, new regional passenger aircraft ARJ21, and the fuselage of the large amphibious aircraft AG600.

In addition, according to public reports, the highly anticipated next-generation twin-engine heavy stealth fighter J-20 is also manufactured by Chengfei.