China Aviation Sanxin Company Limited (CAS): Target at High-end; Avoiding Overflowing Completion

CAS relays mainly on curtain wall construction while making glass products subsidiary. In future, CAS will produce LOW-E energy-saving glass. Now curtain wall construction covers 70%, while glass products 30%. However, gross profit rate of construction (13%) is lower than that of glass production (20%). Producing L0W-E energy-saving glass will open up the industry chain and control the upper materials.

CAS is based on China National Guizhou Aviation Industry (Group) Co., Ltd. and targets at new materials. China National Guizhou Aviation Industry (Group) Co., Ltd. masters CAS, taking up about 29% shares. Recently, China National Guizhou Aviation Industry (Group) Co., Ltd. has three platforms in A stock market. Two of them put their position on war industry, while CAS put its position on new material in future.

CAS will buy Fuyao Hainan assets, import PPG and produce LOW-E energy-saving glass on line. Non-public offering is not more than 100 million shares to buy Fuyao Hainan assets of float glass. Issue price is more than 9.05 Yuan. China National Guizhou Aviation Industry (Group) Co., Ltd. will buy 30 million shares. PPG will manage the project, building production line of energy-saving glass.

CAS will produce energy-saving glass at middle to high-end. CAS thinks that energy-saving glass will have a prosperous future under this economy market. CAS avoids Overflowing Completion of ordinary float glass, opens up a new market in LOE-E energy-saving glass on line. This market’s competition hasn’t been full and its profit rate is high. Energy consumption in China's construction industry occupies 21% of the total social energy consumption. While the consumption in glass door and window occupies 40% in construction consumption, 75% of which is due to glass broken. Generally estimated, the glass consumption occupies 8% of the total market. So energy-saving glass has a prosperous future.