The first delivery of China's domestic large aircraft C919 is approaching. At the end of November, the East China Regional Administration of Civil Aviation issued the production license of the domestic large aircraft C919 to COMAC, which is an important milestone from the design and development stage to the mass production stage of the C919.

Not surprisingly, at the end of this year, the first batch of Chinese passengers will board our C919 aircraft, which marks that the C919 aircraft is about to be delivered and put into operation. At the same time, it also marks that China has the ability to produce large passenger aircraft in batches, which provides conditions for the development of the whole industrial chain of civil aviation manufacturing.

For a while, the news of C919 aircraft got on the hot search and was closely followed by the capital. Industry insiders have said that with the acceleration of the commercial process of domestic large aircraft, its larger market space may reshape the aviation industry pattern in the medium and long-term dimensions, and the industrial chain contains huge potential.

｜ The C919 has won 300 orders, and the large aircraft sector has soared

The domestic large aircraft C919 won 300 new orders at the 14th China International Aviation and Aerospace Exhibition. The contracted customers are seven leasing companies, including Guoyin Financial Leasing, ICBC Financial Leasing, CCB Financial Leasing, BOCOM Financial Leasing, Zhaoyin Financial Leasing, Puyin Financial Leasing and Suyin Financial Leasing.

C919 large passenger aircraft is the first jet trunk passenger aircraft developed by China in accordance with internationally accepted airworthiness standards and with independent intellectual property rights. The final assembly was completed on November 2, 2015, the first flight was successful on May 5, 2017, and the model certificate issued by the Civil Aviation Administration of China was obtained on September 29, 2022. The first C919 aircraft is expected to be delivered in December this year.

COMAC predicts that by 2040, the size of China's passenger aircraft fleet will reach 9957, accounting for 22% of the world's total, becoming the world's largest single aviation market. In the next 20 years, China will receive 9084 civil aviation airliners, with a total market value of more than 9 trillion yuan.

Since the fourth quarter, the C919 has received a lot of good news. Influenced by these news, the large aircraft sector has also climbed steadily and become stronger in shock.

Data shows that from October 1 to December 2, the large aircraft sector rose 10.15%. In terms of individual stocks, 71 of the 83 individual stocks in the sector rose during the period, accounting for more than 80%. Among them, Weiao Shares, Kede CNC, Nengke Technology, ST New Research, Brilliant Technology and other individual stocks rose in the top five during the period, all exceeding 28%, showing a strong performance.

At the same time, some large aircraft concept stocks also gained the favor of large single funds in the market. From October 1 to December 2, there were 20 individual shares in the large aircraft sector that showed a net inflow of large single funds during the period, with a total net inflow of 2.188 billion yuan. Among them, the net purchase amount of large single capital during the period of Nissa Precision Machinery was the largest, which was 541 million yuan, followed by Avionics Power, which was 410 million yuan. The net purchase amount of large single capital during the period of Western Superconductor and Nanshan Aluminum also exceeded 100 million yuan.

The delivery of C919 large passenger aircraft means that the localization rate in the field of large aircraft will be greatly improved in the future. Therefore, the future large aircraft sector is a sector with very certain growth and sustainability.

｜ Large aircraft industry chain is ready

The large-scale production of domestic large aircraft will help to build and improve China's aviation manufacturing industry chain, and inject development momentum into the industry chain companies. Aviation manufacturing is a knowledge and technology intensive industry, involving materials, information, electronics, energy, machinery and other industries.

The large aircraft industry chain is ready to be launched, focusing on five sub industry chains:

First, new materials: aluminum alloy of C919 airframe structure accounts for 65%, composite material accounts for 12%, titanium alloy accounts for 9%, and high-strength steel accounts for 7%. The proportion of CR929 composite materials will increase significantly to more than 50%. Pay attention to the localization progress of raw materials and look forward to investment opportunities for composite materials.

Second, parts: including forged castings, machined parts, standard parts, electronic components, etc., with high added value. We are optimistic about the leaders in such subdivided fields as AVIC Heavy Aircraft, and it is more significant to enjoy the large-scale pulling effect of domestic civil aircraft.

Third, airframe manufacturing: at present, the degree of localization is the highest, with strong certainty of growth. Focus on AVIC Xifei, the leader of large military and civilian aircraft, and the supporting value of C919 accounts for a high proportion.

Fourth, airborne system: the value of the whole machine accounts for about 30%. The product has a high profit margin and large growth space in the process of localization. It is optimistic about Avionics, the leader of avionics system.

The issuance of the C919 production license by the Civil Aviation Administration of China to COMAC is an important milestone of China's aviation level. Investors can pay attention to the listed enterprises that provide electronic information, new materials and data security support in the relevant industrial chain, as well as the relevant manufacturers that provide engine and aircraft support.