Market review: as of December 10, 2021, Shenwan defense industry fell 3.11% this week, 6.26 percentage points lower than Shanghai and Shenzhen 300 index, ranking 28th among Shenwan 28 industries; The national defense industry of Shenwan fell 3.26% this month, 7.88 percentage points lower than the CSI 300 index, ranking 28th among the 28 industries of Shenwan; Shenwan defense and military industry sector has risen 8.64% year to date, outperforming the Shanghai and Shenzhen 300 index by 11.64 percentage points, ranking 11th among Shenwan’s 28 industries.
As of December 10, 2021, the performance of the four sub sectors of Shenwan national defense industry was good, while the performance of the other three sectors was poor. From the performance of the recent week, the shipbuilding sector increased the most, at 0.86%. The performance of other sectors was as follows: the aerospace equipment sector fell 1.99%, the aviation equipment sector fell 5.00%, and the ground military equipment sector fell 1.40%.
View of the National Defense Industry Week: from December 8 to 10, the central economic work conference proposed to complete the three-year action task of state-owned enterprise reform in 2022. 2022 is the last year of the three-year task. The state-owned enterprise reform is expected to accelerate, and we are optimistic about the changes of state-owned enterprise mixed reform enterprises in 2022. In the long run, geopolitical events are becoming more and more complicated, and the number of global military exercises is becoming more and more frequent. Only by improving our military strength can we better deal with the increasingly complex world situation; The new variant virus has increased global uncertainty. As a key target of reverse cycle, the military industry sector is less affected by global economic events, and the industry as a whole is better and more certain. Optimistic about the high prosperity of the industry under the demand for equipment upgrading during the “14th five year plan” period, as well as the expectation of capital return under the acceleration of domestic substitution, optimistic about the aviation industry chain; On the other hand, we are optimistic about the development of Beidou industrial chain under the Internet of things and the development of special chips under the new round of digital currency reform. Suggestions on the subject: Aecc Aviation Power Co Ltd(600893) (600893), Avic Shenyang Aircraft Company Limited(600760) (600760), Unigroup Guoxin Microelectronics Co.Ltd(002049) (002049), Fushun Special Steel Co.Ltd(600399) (600399), Western Superconducting Technologies Co.Ltd(688122) (688122), Avic Electromechanical Systems Co.Ltd(002013) (002013), Avic Heavy Machinery Co.Ltd(600765) (600765), etc.
Risk warning: the number of new orders in the main engine plant is less than expected; Enterprise reform is not as expected; The epidemic worsened more than expected.
