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400-882-6908Today Smarter energy (600869) declared that Far East Smarter Energy Co., Ltd. and Far East Holding Group Co., Ltd. are planning to acquire Beijing Jinghang’an Airport Engineering Co., Ltd. (hereinafter referred to as Jinghang’an) with RMB 729.3 million and RMB 700.7 million in cash respectively. After the acquisition, the company will hold 51% of Jinghang’an’s stock, Far East Holding Group Co., Ltd. will hold 49% of Jinghang’an’s stock. Through this acquisition, Smarter Energy (600869) will expand its business in the Trillion-Yuan level general aviation market, and actively plan the construction of infrastructures along the route of the “Belt and Road” Initiative and airports integrated with military and civil functions.
The public information shows that the predecessor of Jinghang’an was an enterprise owned by the air force of Beijing Military Area Command, which specialized in airport visual guiding projects, air traffic control projects, light-current system of air terminals, airport perimeter security, electromechanical installation projects, navigation aid lighting projects in military airports and construction of navigation & communication projects, and was also one of the four constructors (the first batch) obtaining the construction permit issued by Civil Aviation Administration of China. In the past 15 years since its establishment, this company had been focusing on airport engineering construction and intelligent electrical control devices in airport. Till now, the company has accomplished the civil airport projects in Beijing Capital International Airport, Shanghai Pudong International Airport, Hongqiao International Airport and Jiangsu Nanjing Lukou International Airports, some air force airport projects in Beijing Xijiao Airport and Beijing Nanyuan Airport, as well as some navy airport projects; among which Beijing Nanyuan Airport is the first large-scale airport integrated with civil and military functions in Beijing, of which the construction could enhance the utilization ratio of national resources and the overall defense capability. Now Jinghang’an has been developed into an intelligent solution supplier for first grade airports, which possesses the qualifications of Level I Specialized Contractor of Airport Visual Guiding Projects, Level I Specialized Contractor of Airport Air Traffic Control and Light-current System of Air Terminals, Level II Specialized Contractor of Electromechanical Installation Projects and Level III Specialized Contractor of Intelligent Building Projects. As an advanced enterprise in the industry with around 100 successful cases in and out of China, Jinghang’an has realized complete coverage of the military and civil markets, and is committed to be a global-leading omnidirectional solution provider for intelligent airports.
Jinghang’an provides service in the navigation aid project of Shanghai Hongqiao Airport
According to the 13th Five-Year Plan, China will establish over 500 general-purpose airports, quantity of general-purpose aircrafts will exceed 5,000; annual flying time will reach 2 million hours, and the overall industrial size will exceed RMB 1 trillion. Besides, the business and trade in the areas along the route of the “Belt and Road” Initiative are being promoted. Development of international trade is inseparable from logistics. Among maritime transport, road transport, railway transport and air transport, the air transport is most convenient and efficient. The aviation network between China and regions along the route of the “Belt and Road” Initiative is being perfected, which could lay a solid foundation for air transport. According to the NDRC report, in the provinces along the route of the “Belt and Road” Initiative, 33 airports will be established, renovation and expansion of 51 hub airports will be finished, 51 large / medium civil aviation construction projects which directly serves the “Belt and Road” Initiative will be accelerated with higher priority, and the total investment will reach RMB 163.6 billion. Chinese enterprises will participate in around 40 civil aviation infrastructure construction projects in over 20 countries along the route of the “Belt and Road” Initiative, which will benefit 32 airports along the route of the “Belt and Road” Initiative.
Jinghang’an provides service in navigation aid project of Beijing Capital International Airport
As the forerunner among Chinese constructors in oversea airport construction, Jinghang’an also participated in the airport construction of visual navigation aid lighting projects, air traffic control projects and light-current system of air terminals in airports in African, East European and East Asian countries, and has accumulated mature power solutions for oversea airport construction successfully. Meanwhile, the company possesses patented technologies and engineering standards in some key processes. From 2009 to 2012, Jinghang’an has won the National Quality Award successively, and won the Municipal Gold Cup Demonstration Project Award successively since the No. 1 runway of Pudong Airport in the Shanghai Pudong International Airport project and Shanghai Hongqiao International Airport project.
The public information shows that as a global-leading system service provider of smarter energy and smart city, Smarter Energy (600869) keeps promoting the internationalization process, planning the oversea market in its development history, and has achieved remarkable success through winning the important strategic customers like GE, Siemens and Anxinneng Based on the long-term development strategy of the company, this acquisition positively responds to Chairman Xi’s guidance of “The unobstructed road is the basis of prosperity in all industries, the interconnected facilities is the foundation of cooperation and development ”, and aiming at the fast industrial development triggered by future general aviation field. With the support of Jinghang’an’s extraordinary management team in aviation field, this acquisition could also develop the domestic general aviation industry rapidly; in the interconnection of the “Belt and Road” Initiative facilities field, this acquisition could realize faster exploitation of oversea infrastructure construction market by grasping the opportunity of the “Belt and Road” Initiative together with the company’s ongoing oversea businesses, and expand the business to the general aviation field integrated with military and civil functions.
The public information also told us that Jinghang’an has promised that the net profits from 2017 to 2019 will be RMB 110 million, RMB 143 million and RMB 171.6 million respectively. The integration will bring Smarter Energy (600869) new profit growth points, and keep enhancing the profitability of the company through exerting the synergy effect. Smarter Energy (600869) will benefit from this transaction in further industrial chain integration, expansion of domestic / oversea businesses, unceasing promotion of infrastructure construction of the “Belt and Road” Initiative, so that the company could expand its business in the Trillion-Yuan level general aviation market integrated with military and civil functions. The company’s development deserves our attention.
