The long-term investment value of the military industry sector is prominent, and the current valuation is attractive
The military industry sector has entered a new era of value investment, with prominent long-term investment value. In the current international environment, the demand for military products is in the initial stage of outbreak, the performance growth potential of high-quality enterprises is huge, and the investment in the military industry sector has entered a new era of value investment. Although based on historical inertia, the military industry sector still has certain advantages β However, excluding the short-term fluctuation disturbance, the long-term investment value of the industry highlights.
The valuation of the sector is basically at the historical average level. At present, the apparent price earnings ratio (TTM) of the military industry sector has reached 72.5, higher than the historical average of 62.4 since 2010. As it is close to the end of 2021, the performance of Companies in the military industry sector is highly seasonal, and the performance in the fourth quarter accounts for a high proportion of the whole year. At present, ttmpe has great distortion, and the actual valuation is basically at the historical average.
The current valuation of the military industry sector is attractive.
Except for the main engine plant, the valuation of the company is low. In the current valuation, the valuation of the main engine plant is high, raising the overall industry valuation. Except for the main engine plant, the current valuation of other companies with investment value is relatively reasonable.
The performance of the sector continues to grow and digest the valuation. During the 14th Five Year Plan period, we estimate that the performance of the sector will maintain a compound annual growth rate of more than 20%, and the growth will continue to digest the valuation.
The year-end valuation is switched, and the dynamic PE in 2022 is lower. At present, it is in an important period of year-end valuation switching. The corresponding P / E ratio of the military industry sector has decreased significantly in 2022, and the current valuation is very attractive.
