Market review: as of February 18, 2022, Shenwan defense and military industry rose 1.96% this week, outperforming the Shanghai and Shenzhen 300 index by 0.88 percentage points, ranking 15th among Shenwan 31 industries; Shenwan defense industry rose 1.33% this month, 0.58 percentage points lower than the CSI 300 index, ranking 27th among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 16.83% year to date, 10.98 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries.
As of February 18, 2022, the overall performance of Shenwan national defense industry was good. From the performance of the last week, the ground military equipment sector increased the most, at 5.54%. Other sectors showed as follows: the aviation equipment sector rose 2.86%, the aerospace equipment sector rose 1.63%, the military electronics sector rose 1.05%, and the navigation equipment sector rose 0.34%.
View of Defense Industry Week: Shenwan defense industry rose 1.96% this week, outperforming the CSI 300 index by 0.88 percentage points, and the industry index shows signs of stabilizing recently.
In the short term, the global interest rate increase cycle may have an impact on companies with high valuation. Superimposed on the fact that the performance growth rate of some military industrial groups is lower than expected, the industry may have great volatility in the short term, but the short-term volatility will not affect the high prosperity of the industry during the whole "14th five year plan" period. In the long run, Europe and the United States and other countries intend to complicate geopolitics. Geopolitical events will become the global focus in recent years. Ukraine and the Asia Pacific region are the focus of western countries such as Europe and the United States; The emergence of the US Navy in the South China Sea has become a norm, and the number of global military exercises is becoming more and more frequent. Only by improving its military strength can we better cope with the increasingly complex world situation.
Optimistic about the high prosperity of the industry under the demand for equipment upgrading during the 14th Five Year Plan period; From the perspective of usage, with the increase of actual training times, the loss of trainer aircraft and the replenishment of missile inventory are increased. We are optimistic about the aviation industry chain and the missile industry chain with high consumables. On the other hand, Wu Yanhua, deputy director of the National Space Administration, said at the white paper press conference of China's aerospace in 2021 that in the next five years, we should accelerate the transfer and transformation of aerospace technology achievements to economy and society, and be optimistic about the development of Beidou industrial chain under Aerospace industry services and the Internet of things, as well as the development of special chips under the new round of digital currency reform. Suggestions on the subject: Aerospace Ch Uav Co.Ltd(002389) (002389), Xi'An Triangle Defense Co.Ltd(300775) (300775), Avic Heavy Machinery Co.Ltd(600765) (600765), Unigroup Guoxin Microelectronics Co.Ltd(002049) (002049), China Zhenhua (Group) Science & Technology Co.Ltd(000733) (000733), Western Superconducting Technologies Co.Ltd(688122) (688122), Gaona Aero Material Co.Ltd(300034) (300034), etc.
Risk warning: the number of new orders of the main engine factory is less than expected; Enterprise reform is not as expected; The epidemic worsened more than expected.
