Investment advice
Core combination [core combination] of the core combination of the core combination of ‘ Avic Xi’An Aircraft Industry Group Company Ltd(000768) \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ China Marine Information Electronics Company Limited(600764) , Beijing Aerospace Changfeng Co.Ltd(600855)
Key stock pool [key pool] has focused on the pool of key shares [[key pool pool of key stock pool] ofa series of\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\, Wuxi Hyatech Co.Ltd(688510) , Wuhan Guide Infrared Co.Ltd(002414) , Zhejiang Dali Technology Co.Ltd(002214) Xi’An Bright Laser Technologies Co.Ltd(688333) Chengdu Zhimingda Electronics Co.Ltd(688636) 688 Hongda Xingye Co.Ltd(002002) 985 Asian Star Anchor Chain Co.Ltd.Jiangsu(601890)
[last week’s report] [ Raytron Technology Co.Ltd(688002) ] equity incentive fees affect performance, and non temperature measurement products grow steadily
[view of this week] (1) China’s military budget in 2022 is 1.45 trillion yuan, with a year-on-year increase of 7.1%, an increase of 0.3 percentage points over 2021, the first increase of more than 7% since 2019. At present, China’s military expenditure accounts for 1.2% of GDP, which is still far from the world’s mainstream level of 2.4%. The military budget of the United States in fiscal year 2022 is 3.27 times that of China, and China’s military expenditure is only 31% of that of the United States. In 2021, the US military expenditure accounted for 3.2% of GDP, far ahead of other countries; Germany increased significantly to more than 2% in 2022 (1.5% in 2021). (2) The high prosperity and medium and long-term investment logic of the military industry have not changed. After this round of adjustment, the investment value has become more and more prominent. Since the beginning of the year, Shenwan national defense military industry index has accumulated a decline of 16%. At present, the overall PE is 61 times, which is in the 30% quantile of the historical high of the past five years, and the value of sector configuration is prominent. (3) Endogenous epitaxial two wheel drive: we are firmly optimistic about the military industry from 2022 to 2023, and the index has great room for rise; In 2022, as the last year of the “three-year action plan” of state-owned enterprises, the mixed reform / incentive / asset securitization will be promoted in an all-round way, the exogenous growth will exceed expectations, and the military industry will be driven by endogenous + epitaxial growth.
[core view] the deterministic growth of national defense is high. In 2022, it will enter the sweet period of “business cycle + asset integration” and “endogenous + extension” two wheel drive, “domestic demand + foreign trade” and “military products + civilian products”. The military industry index is expected to replicate the performance of the wind power index in the second half of 2021 in 2022, and the latter is in the top: (1) the deterministic growth of national defense industry is high under the “century change”. “Preparing for war / 2027 / building a strong national defense commensurate with the second largest economy” is the established direction. Large contract liabilities in 2021 highlight the high boom of the 14th five year plan. (2) In the next few years, the securitization of national defense and military assets and the reorganization and listing of core military products are expected to set off a new climax. CSSC’s companies have started restructuring, and the restructuring of the top ten military industrial groups is expected to increase significantly. We pay attention to the restructuring process of CSSC / Aerospace Hi-Tech Holding Group Co.Ltd(000901) / CETC / AVIC / Aerospace Science and industry / ordnance industry and other groups. (3) China’s main battle tank / UAV / Trainer / fighter have global competitiveness, and the demand for foreign trade will gradually rise. Domestic large civil aircraft / civil aviation engines and other industrial chains are also gradually growing. Defense industry: look at the missile / information / launch / military machine sub industry, scale + fine management, and “small core and big collaboration”. In the next five years, the next five years will see a resilient performance of defense hosts. It will be the end of the “three years of state enterprise reform” and the equity incentive is expected to be the end of the three-year action to end the three years of reform of state enterprises. The stock incentive is expected to accelerate, and the stock incentive is expected to accelerate. Performance release: performance release: scale + fine management, fine management, small core and big collaboration. In the next five years, the next five years, the next five years of five years, the closing of the three-year action to reform of state enterprise reform, and equity incentive is expected to be expected to accelerate the boost. Performance release: performance release: AVIC.
2. Continue to look at high-tech barriers, high scarcity, and high-temperature alloys / composites / midsmidsmidstream assembly level matching companies / engine forging castings / information core. 2. 2. Continue to look at high-tech barriers, high scarcity, and competitive landscape with high-tech barriers, high scarcity, and high-tech high-2. 2. Continue to look at high-tech barriers, high scarcity, and high-temperature alloys / composites / composites / materials / components / midsmidstream components / engine forging castings / information cores / information core. Midsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidsmidstream and other mid and upper and upper upper and upper mid stream segment segments of a series of : \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\, Xi’An Triangle Defense Co.Ltd(300775) , Wuxi Hyatech Co.Ltd(688510) Avic Electromechanical Systems Co.Ltd(002013) China Avionics Systems Co.Ltd(600372) Xi’An Bright Laser Technologies Co.Ltd(688333) Jiangsu Toland Alloy Co.Ltd(300855) 。
3. Missile and informatization: Unigroup Guoxin Microelectronics Co.Ltd(002049) , Fujian Torch Electron Technology Co.Ltd(603678) , China Zhenhua (Group) Science & Technology Co.Ltd(000733) , Chengdu Zhimingda Electronics Co.Ltd(688636) , Wuhan Guide Infrared Co.Ltd(002414) etc.
Risk tips
1) the rhythm of equity incentive and asset securitization is lower than expected 2) the development and delivery progress of important products is lower than expected
