The J-20 is coming to A-shares, and Avionics is planning to reorganize into an aviation group

At the beginning of the new year, the news of AVIC’s plan to reorganize into an aircraft group came out, causing market shocks. For the country, it is the deepening of the reform of state-owned enterprises. For the competent authorities, it is the optimization of the operation of central enterprises. For the enterprises themselves, it is the improvement of quality and efficiency.

AVIC is a large state-owned enterprise managed by the central government. In recent years, the assets of AVIC have been continuously integrated. The acquisition of Chengfei Group by AVIC is a microcosm of AVIC’s asset integration in recent years. Chengfei Group is the main base for the development, production and export of my country’s aviation weapons and equipment, an important manufacturer of civil aircraft parts, and a national key and advantageous enterprise. Chengfei Group’s “big power” J-20 is particularly eye-catching.

At present, the military industry is still the focus of state-owned enterprise reform. Since the reform of state-owned enterprises in the past three years, military industry groups have undergone frequent reorganization and asset purchases. And out of the need to improve the competitiveness of listed companies, the military industry has the motivation to achieve better incentives through the operation of the capital market. The injection of high-quality assets into the military industry is an important means for large central enterprise groups to revitalize capital operations and increase asset securitization rates. Therefore, state-owned enterprises in the military industry inject assets into their listed companies to create a listed company with a market value of hundreds of billions, which has a high motivation for asset injection and is worthy of follow-up and attention.