Black technology: a super empire spanning two worlds

Chapter 170 [AVIC Linfei Becomes the Biggest Beneficiary]

As Linzhou City officially announced its plan to invest RMB 1 trillion to build a 665-kilometer floating train project and opened it to public bidding, this matter not only caused a sensation in the industry, but also attracted heated discussions from people outside the industry.

During the following week-long Spring Festival holiday, many companies such as Zhuzhou Electric Locomotive Company and Zhongguo CRRC were not idle, but sent people to Linzhou City as soon as possible.

Just as Xiao Yu expected, these companies did not take the initiative to visit him, but sent people over first.

How can you sit still for such a huge project?
The project was initiated and tendered by Linzhou City, but it was inseparable from Xiao Yu, or in other words, inseparable from AVIC Linfei Company. Whether it is the key room-temperature superconductivity of the project or the huge budget guarantee, it is all related to Xiao Yu.

However, during the New Year holiday, Xiao Yu became a hands-off boss and handed over all the specific work to Chen Zaiqing.

On Wednesday, January 1, CRRC Corporation Limited released an epic announcement, successfully winning the bid for the joint research and development and vehicle manufacturing of 25 sky-rail trains in Linzhou City, with a staggering amount of 702 billion yuan.

The project plans to form an air-rail train with 6 carriages, 702 carriages, and a total of 117 air-rail trains.

This means that the average cost of each train carriage will reach 5.41 million yuan, and the cost of a six-carriage train will be 6 billion yuan. This is undoubtedly an astronomical figure.

Compared with the current six-carriage A-type subway train, whose average market price is about 6 million yuan, and the cost of a Linzhou city sky-rail train is 5500 billion yuan, the price difference between the two is as much as 32.46 times.

The outside world was all shocked and dumbfounded, and it was no exaggeration to say that it was a sky-high price.

As a public infrastructure project, the ticket price must not be too expensive, and Linzhou City originally planned to charge according to the subway fare. It will take a long time to recover the cost by selling tickets.

In fact, Linzhou City has no intention of recovering the cost of the project's 1 trillion yuan budget, not a single cent, and no plan to make a profit, only to cover daily operating costs.

Linzhou City dares to do this only because it has extremely strong fiscal and tax revenue growth expectations to support its future. Otherwise, even the four first-tier cities would not be able to hold on.

Obviously, with such an expensive cost, the outside world subconsciously thinks that it is due to the room-temperature superconducting material. Indeed, the cost of an aerial rail carriage is 5.41 million yuan, and room-temperature superconductivity accounts for about 82%, or 4.43 million yuan.

There are a total of 702 air-rail carriages with a total construction cost of 3798 billion yuan. The order was won by CRRC Corporation Limited, but the one that really made the most money was actually AVIC Linfei Company, which is expected to take 3110 billion yuan, relying on the most core room-temperature superconducting materials.

CRRC successfully obtained the project target. According to the process, the company has to find AVIC Linfei Company to purchase room-temperature superconductors worth 3100 billion yuan. This is an indispensable core material for the production of sky-rail trains. The cost of technical integration is to be calculated separately. Of course, AVIC Linfei is also involved in this and will pay part of the money.

In general, CRRC's net profit margin for this project is only about 7%, which means it is expected to make a net profit of 3798 billion yuan for the 265 billion yuan order. Moreover, the delivery will take several years. It is impossible to produce and deliver all 702 sky-rail trains in one year.

These 702 sky-rail trains, totaling 117 trains, are meant to run on 22 lines. Not to mention whether CRRC's production capacity can keep up, even if it can, it is impossible for Linzhou City to open all 22 lines in such a short time.

Such an expensive cost, after being announced, caused a huge sensation both inside and outside the industry, and also generated considerable controversy.

Some people opposed this, believing that there was no need for Linzhou City to be so anxious. It could just wait a few years until the cost of room-temperature superconducting materials dropped and it could be mass-produced. It would not be too late to start the project then. It would be a waste of money to launch the project in such a hurry.

Many people agree that Linzhou City has done a good job and dared to bear huge sunk costs in the early stage. Without such a large project, how can the price of room temperature superconducting materials be reduced? Someone has to take the first step. This move by Linzhou City will definitely greatly improve the efficiency of popularizing room temperature superconducting materials.

But no matter how loud the voices of the opponents are, the project has already begun to take shape, and CRRC has already signed an epic order. There is no doubt that the sky-rail train project will be pushed forward.

In the next two days, news continued to come out, such as news that Zhongguo China Railway, Zhongguo Railway Construction and other companies participated in the bidding.

Apart from AVIC Linfei, there are basically no other private enterprises participating in this super engineering project. All the big orders are from companies with the Chinese character "Zhong" in their names. It depends on which one to choose. There are other private enterprises participating in the bidding, and there are quite a few of them, but they are just some minor things, such as the seats in the carriage, which are basically just a small sip of soup.

The highlight of this project still has to rely on the "China" to play the leading role.

……

As the Spring Festival holiday comes to an end, it is Monday, January 1th.

The first trading day after the holiday opened as scheduled. Driven by the positive news during the Spring Festival holiday, Lingjing Technology opened at 239.03 yuan today, a sharp increase of +6.89%. The reason is that AVIC Linfei Company became the biggest beneficiary of the trillion-yuan project of Linzhou City's air-rail train.

Of this huge pie, AVIC Linfei alone took away more than 3100 billion yuan, and Lingjing Technology holds a 25% stake in the company, so it is also indirectly beneficial to Lingjing Technology.

As soon as this opening price came out, Lingjing Technology once again made history, becoming the first listed company in the A-share market to have a market value exceeding 20 trillion yuan, and its popularity was at its peak.

In addition, all the stocks with "Zhong" in their names opened higher today. Among them, Zhongguo Railway Construction and Zhongguo China Railway both hit the upper limit today due to rumors during the Spring Festival holiday, and Zhongguo CRRC also hit the upper limit, marking the second consecutive day of gains.

After the opening, Lingjing Technology quickly hit today's highest price of 239.89 yuan, setting a new historical high, and its market value peaked at a terrifying 20.82 trillion yuan.

However, it opened high and closed low. The reason was that the scale of the market was too large, and it was indeed difficult to pull it up. Moreover, expectations were constantly being fulfilled, and the "China" tickets had snatched away a lot of liquidity. The overall market environment expectations were not very good.

Finally, when Lingjing Technology closed, the increase narrowed to 229.86 yuan, with a market value of 19.95 trillion yuan, and it did not close firmly above the 20 trillion yuan mark.

It is worth mentioning that the high of 239.89 yuan reached by Lingjing Technology today is already the historical high for the next year. This technology giant has been running all the way to now and has finally ushered in a real medium- and long-term adjustment.

Because in the following year, the A-share market will be extremely sluggish, and both good companies and junk stocks will continue to fall. Under the influence of such an environment, Lingjing Technology will also be dragged down. If it were not for the fact that the company's fundamentals are strong enough and its imagination space is huge, such a large market would probably have suffered a stock market crash.

On the next day, Lingjing Technology fell back again by -5.60%, and its market value further fell to 18.83 trillion. This stock officially ushered in an adjustment.

However, today, CRRC Corporation Limited once again strongly listed on the board and achieved three consecutive days of gains. Its market value exceeded the 2000 billion mark, and its popularity index even reached the top of the daily list.

Many old investors exclaimed that Zhongguo CRRC's iron tree had blossomed, as it had achieved three consecutive gains for the first time in history. Some old investors remembered that the last time the company achieved three consecutive gains was eight years ago in 2015, when the A-share market was in the midst of an epic bull market.

Now it seems that it is about to become a monster, and its market recognition has also been established. Previously, the stock that no one would buy has suddenly become a hot commodity in the market.

Because the situation has changed, CRRC won the super-large order for the Linzhou City Skytrain Project, and it was hard for it not to take off by riding on the huge trend of room-temperature superconductors.

In the foreseeable future superconducting era, this company is also given huge room for imagination, and capital is speculation on expectations.

The imagination space has been opened, and the valuation logic has to change. Previously, a market value of 1500 billion was considered expensive, but now a market value of 2000 billion is still considered very cheap. Faced with the force of trend reversal, if the short sellers suppress the market, there will be a risk of a short squeeze.

……

(End of this chapter)