Chapter 788 It's Not For Nothing
The surprise that Farouk said was that he was worried that the war would be unfavorable to Israel.
Li Changheng worried that if there were no accidents, the war might end by the end of October.
Without the threat of war, Iselie will 100% delay the payment of the final payment for the fighter.
After thinking for a while, Li Changheng began to calculate Grumman President Brett and said, "With Farouk's order for 150 Tomcats, among the 430 Tomcats produced for the US Navy, Grumman and Boyin will have at least 150. There will be no loss."
Brett quickly understood what Li Changheng meant, if he really did what he said.
The tens of millions of dollars that could have been earned is equivalent to providing free support to the US Navy.
In this way, how can Grumman rely on the order of 150 fighter jets from Yiselie to offset the losses of these years while making a fortune?
How can you take the opportunity to raise the stock price?
If the stock price does not rise, where will there be money for follow-up orders and research and development?
Once Grumman has no money, it means that the initiative is completely dominated by Bo Yin, who owns half of the Tomcat ownership.
As for the hundreds of millions of dollars in training, weapons and equipment, and spare parts business.
And providing an assembly line for a Tomcat fighter jet to Israel, you can get 500 million U.S. dollars in research and development expenses. Brett knows that the money will not run away, but he will not get it so soon.
So for your own bonus and possible equity incentives.
Brett still eagerly said to Li Changheng, "Sir, don't forget the research and development expenses, the loss of funds advanced for so many years, and the 22 Tomcats that have been produced, which have brought losses to Grumman."
"That's 100", Li Changheng's meaning is obvious, even if Grumman gets a big order, he can only supply the US Navy with the money he earned from Yi Selie.
Otherwise, he wouldn't use his face and his past friendship with the top US Navy to help Grumman fight for his interests.
And only if the U.S. Navy exerts its strength, the production progress can be at least doubled.
At that time, the U.S. Navy will benefit from the Tomcat project, and the favor will all belong to Li Changheng.
Comparing it with Grumman, who has always been stingy in recent years, the senior management of the US Navy will feel that Li Changheng is more reliable.
With the addition of the navy, Farouk feels at ease, but at the same time feels that Grumman has not taken advantage of it, so it will be much easier to pay.
As long as the money can be obtained and the project can go ahead, Li Changheng's calculation can succeed.
Sure enough, when Li Changheng looked at him, Farouk soon smiled again.
In the end, Brett had no choice but to look to Boyin's president, Payne, to seek the support of Boyin, who holds half of the rights in the Tomcat fighter.
It's a pity that Payne has already guessed that Li Changheng is plotting against Grumman, even if he didn't guess, he doesn't have any objection.
Not to mention the fact that they are both in the interests of Citigroup, and all the companies within Citigroup, when Li Changheng continues to prove that he has a strong vision and wins one after another, no one dares to refute him.
And Payne knew very well that Boyin made a lot of money in this business.
Even, ten times that of Grumman.
According to Li Changheng's vision, Boyin really can't make money on the projects of 150 fighter jets for Israel and 100 fighter jets for the US Navy.
But don't forget that the engine used by the Tomcat fighter was not produced by Boyin.
Now that the Boyin engine is replaced, it is too late for the first batch of 50 orders to be replaced, and even the second batch sold to the US Navy is not enough.
However, for an order of 150 plus 430 for a total of 580, only 400 follow-ups need to be ordered, which is 800 engines.
An engine with a price of more than 10 million yuan generally has a net profit of 40% to 50%.
The order of 800 engines is a profit of 3.2 billion to more than 4 billion US dollars.
Although this money is likely to be earned a little over five or ten years, the average annual profit is 600 million, or even 500 million.
Payne let alone refute Li Changheng, it's fine to kneel in front of him.
Even, after thinking of such a huge profit, Payne has decided in his heart that the negotiations tonight will be over.
They contacted most of Boyin's shareholders to discuss how to actively bring Li Changheng into Boyin's system.
In case such a large net profit is not expressed, why should Li Changheng help Boyin find projects in the future?
Besides, if Li Changheng hadn't reminded him about getting involved in the Tomcat project, Boyin would never have had the chance to join, let alone earn the three or four billion dollars.
The only regrettable thing is that despite the huge profits, the share price of Boyin, an industrial entity, has very few customers and a small audience, so it cannot be sought after by most institutions and investors like high-tech companies.
Market caps often fall short of annual sales.
Later, Payne, who had roughly understood Li Changheng's calculations, knew very well in his heart that if Grumman was not forced to agree to lose money to produce 100 planes for the US Navy, then the order for 430 planes would probably be lost.
And without the 43 billion orders, the follow-up orders that may appear in Europe, Kangaroo Country, and Maple Leaf Country will also be impossible to get.
Not to mention, because Boyin has obtained half of Tomcat's rights and interests, in the future, as long as Boyin can produce the parts of the entire aircraft, it will definitely be able to snatch it from the original manufacturer.
Grumman has only delivered 22 Tomcats to the US Navy in the four or five years from 1969 to the present.
With such a long delivery period and such a small number of orders, it is impossible for Grumman to sign a contract with a manufacturer of Tomcat fighter parts for dozens or hundreds of aircraft.
This kind of account is really easy for Payne.
Brett, who secretly laughed at the fact that he would sign a fixed price and sell fighters, was indeed an idiot.
Shrugging his shoulders with a helpless expression, he said to Brett, "You have to understand that the more Tomcats are delivered and have the opportunity to perform better in actual combat.
Only then will there be future orders and benefits from other channels. "
Brett knew what other benefits Payne was talking about, and now that he was overwhelmed 3-1, he could only nod and give in helplessly.
It's a pity that Phoenix's air-to-air guide egg is a product of Boyin.
The profit from spare parts and the 500 million or 1 billion from the assembly line will be divided into half of Boyin.
For a moment, Brett suddenly felt that Boyin, who was his own son, and Grumman, who was not even considered a godson, were really incomparable in the heart of a big man like Li Changheng.
Thinking of this, Brett looked at Payne fiercely, and instantly saw a hint of dodge in Payne's eyes that did not respond in time.
And Payne was embarrassed, and wanted to stabilize his mind, but within a second he suddenly thought that maybe he should cooperate and cooperate with Li Changheng.
Since the big benefactor who has brought huge benefits to Boyin is scheming against Grumman, if he helps Li Changheng achieve his goal, he will be credited.
Consider Tyler Garnell, now the face of Lee Jang Hyung at Citigroup.
In the future, if Li Changheng really invests in Boyin, it will definitely only benefit him and not hurt him to secure his position as the president of Boyin.
Therefore, Payne's eyes flickered, and while avoiding Brett, he seemed to turn his eyes to Li Changheng, and took a few glances.