<7th Sep 2017> Hizeaero Co. Ltd, signed a three-year supply contract with COMAC worth $28.4 million

Hizeaero Co. Ltd, (221840, CEO SangHeon Ha, www.hizeaero.com) local representative manufacturer of aircraft part, announced on 7th Sep. the three-year supply contract with COMAC (The Commercial Aircraft Corporation of China, Ltd).  The contract amount is worth around $28.4 million, 98% of last year sales, aircraft parts for B737MAX and B737NG. The contract period is three-year, from Jan 2018 to Dec 2020.

Because this supply contact is a regular step for mass production of B737MAX and B737 NG -horizontal tail wing, there is a much more positive outlook in revenue growth. Especially B737 MAX is the latest model and best seller aircraft type.

Hizeaero also expressed confidence in earnings improvement. Sales and operating profit for the 1H 2017 increased each by 22%, 84% respectively. Mass production for China and Japan’s began to take off and overseas exports has been surging. Furthermore, KAL sales are expected to increase by Busan factory completion.
Hiaeaero is expected to accelerate earnings growth in the 2H of this year.

Meanwhile, Chinese state-owned aircraft maker, COMAC Co., Ltd., is only professional civilian aircraft manufacturer in China, producing large quantities of aircraft manufactured by Boeing and Airbus worldwide through a trade-off with China's growing demand for aircraft. In addition, in May, C919, the first mid-sized commercial aircraft developed in China, succeeded in flying, securing more than 600 orders from China and the world.