In recent years, the continuous deepening of civil-military integration has become an important boost for the continuous development of the military industry. With the promotion of policies, the two major industries, military to civilian, and civil and military, have accelerated their integration. As the only company in the home appliance industry with a military background Sichuan Changhong, the company plans to acquire zero in recent days. The 100% equity of Bayi Group. Sichuan Changhong has previously had a military business. Its Changhong Power Company has a 70% share in the military aviation power market. At present, it plans to acquire the Bayi Group, a listed company’s military assets or expand capacity again.
Earlier this month, Sichuan Changhong issued an announcement stating that in order to integrate high-quality military assets, enhance its comprehensive profitability, broaden its business scope, and promote the in-depth development of the military-military integration industry, the company intends to acquire the controlling shareholder Sichuan Changhong Electronics Holdings Group Limited by cash through a non-public agreement. The 100% shareholding of the Zero One Electronic Group Co., Ltd. (abbreviated as 'Zone No. One Group') held by Sichuan Electronic Warfare Group Co., Ltd. ("the Military Group"), a wholly-owned subsidiary of the company ("Changhong Holdings"), will be held. June 28th Sichuan Changhong Annual Shareholders' General Meeting deliberation.
Analysts said that the integration of high-quality military assets and the acquisition of 100% equity in Group VIII will help improve Changhong’s comprehensive profitability. The military industry has always been the focus of capital, and especially the outstanding performance of the leading standard is more likely to become a sought-after fund.
Inject Military Assets to Accelerate Mutual Conversion of Military and Civilian Products
Because the military industry involves national strategy and security, it is difficult for general private capital to enter under the current policy. Sichuan Changhong has established military industry, has undergone color TV industry, and military technology has been developing throughout Changhong. It not only transforms itself into military products and civilian products. Also extended to home appliances.
Take the YX Group's 'Firehole' light battlefield reconnaissance radar as an example, Changhong has introduced this technology into civilian use and achieved success. At present, relevant products can be found in government, border posts, airports, Olympic venues and other places. Meanwhile, the product It has also been applied in batches in Xinjiang border defense systems to provide technical protection for counter-terrorism and border security, and has been widely acclaimed in the civil market.
Seeing Panther, Leopard’s parent company, Changhong Holding Co., Ltd. has a number of similar military assets and solutions, which mainly include: Development of military-civilian-related products based on radio and optoelectronic radar technology, and development of information solutions based on information technology-based technological advantages. Based on the technical advantages of the refrigeration system, China will develop low-noise air-conditioning equipment for submarines, develop civil battery systems based on military aviation power systems, and develop highly reliable connectors based on military technology.
In other words, Changhong, which is backed by military assets, is equivalent to a block of gold mines. From the perspective of market operations, once high-quality military assets are incorporated into listed companies, they will lead capital buoyancy and will also boost corporate profitability.
Industrial economic observer Liang Zhenpeng told reporters that Sichuan Changhong once incorporated high-quality military assets of major shareholders will greatly ease the previous pressure of home appliance operation. In addition, the military industry’s own business channels, as well as military-civilian mutual conversion and other achievements, Changhong will Get more orders and opportunities. The extension of military technology in the home appliance industry can help Changhong to lead in technology and maintain its competitiveness.
Strengthening military genetics will help increase market value
'The history of Changhong's development is the history of the integration of military and civilian development. The integration of military and civilian has always followed the development of Changhong. 'The relevant person in Changhong once said in an interview with the media.
In 1958, the State-owned 780 Factory (formerly known as the Changhong Group) was established. It was the only airborne fire control radar production base in China. In December 1972, Changhong's first black and white TV set was successfully tested and opened the 'protecting the military and transferring people'. In 2007, Changhong invested RMB 1.5 billion to form a large-scale military enterprise group. In 2017, Sichuan Electronic Military Industry Group Co., Ltd. was incorporated as the first batch of military-civilian integration large-scale enterprises and large groups in Sichuan Province. In 2018, Sichuan Changhong planned to use cash to The public agreement method to acquire the 100% equity of the Group 081 ... It is expected that after injecting the high-quality military assets of the Group 881, the military genetics of Changhong will be strengthened, and the overall improvement in business, orders, innovation, technology, etc. It is expected to promote the market value. The acquisition of shareholdings of Group VIII is very important to the development of Changhong.
In fact, as early as four years ago, Changhong had launched an offensive against the military assets of major shareholders. However, Sichuan SASAC's opinion made the additional issuance blocked. It stated that the military industry group needed to enter the market to sell in accordance with relevant regulations and requirements. A group of 100% equity, so Sichuan Changhong decided to terminate the non-public issuance of stocks. Four years later, Changhong has made a comeback and plans to acquire 100% equity of the Group One Group in cash through a non-public agreement.
The Group's predecessor was the military enterprise of the country that was invested and built by the state in accordance with the principles of the third-line construction and large-scale regional cooperation in the 1960s. The Group has now developed into a core enterprise and military electronics core capability for short-range air defense in China. Key units, research and production key units of the battlefield armored intelligence reconnaissance and processing system, key scientific research and production units for low-altitude and ultra-low altitude target indication radars, research and development units for key aerospace monitoring and control radars, and a complete scientific research, production and management system.
For the acquisition of the 08th Group's equity (military assets), the industry experts and brokerages are optimistic.
'Zhaoyiyi Group has a complete military industrial chain and strong independent research and development capabilities. These technologies and capabilities are very helpful to the promotion of Changhong's existing businesses and the exploration of new markets. On the contrary, the Group has relied on listed companies and Market resources to re-clear product structure and development strategy, help to find and form new business opportunities, and revitalize business operations and development. 'Liang Zhenpeng said.
It is worthy of investors’ attention that in the second half of this year, a number of brokerage firms recommended military themes in terms of theme investment. For example, Pacific Securities said that it benefits from the mass consumption under the trend of consumer upgrading and consumer sinking, and it should pay attention to beneficiary government’s promotion in the second half of this year. Military reforms, medicine, semiconductors, etc.