Core ideas of this week
1) the first batch of 6 J-10 CE fighters were delivered to Pakistan, realizing the systematic export of a new generation of aviation main combat equipment for the first time. According to the aviation industry group, on March 11 local time, the Pakistani air force held the first batch of 6 j-10ce acceptance ceremony in Kamla. This indicates that China's new generation of aviation main combat equipment has been officially installed in the Pakistani air force, realizing the systematic and organic export of China's new generation of aviation main combat equipment, which is another important milestone in the export of China's aviation high-tech equipment. J-10ce fighter is an all-weather, single engine, single seat and multi-purpose third generation + fighter independently developed by China aviation industry group. It belongs to security and defense weapons products. It has the capabilities of powerful system cooperative operation, advanced over the horizon multi-target attack in strong electromagnetic countermeasure environment, and multi-mode precision attack on the ground; It has excellent capabilities of supersonic combat, short range, medium and long range of taking off and landing in the air; Equipped with advanced integrated avionics system and weapon system, it has strong external weapon capability. In the sixth Dubai air show in 2019, the j-10ce fighter made its first public appearance, and then was publicly displayed again at the 13th China Air Show in 2021. This export to Pakistan is a normal military trade, in line with the Charter of the United Nations and relevant resolutions of the United Nations Security Council, in line with the Chinese government's international commitments and obligations such as non-proliferation, as well as China's export control and military export laws and regulations. In recent years, a large number of aviation military trade products of China aviation industry group have systematically appeared in large-scale international air fairs. L15, zhi-10me, "pterosaur" series UAVs and other products have attracted much attention at home and abroad. With the further development and production of China's weapons and equipment, a series of advanced export models are expected to continue to be launched and recognized by international users. It is expected that the landscape of relevant industrial chains will continue to improve under this background.
2) Beidou system has entered a new stage of sustained, stable and rapid development through global continuous monitoring and evaluation. According to Xinhua news agency, measured by the global continuous monitoring and evaluation system, the positioning, navigation and timing service of beidou-3 global satellite navigation system has advanced global performance indicators and better performance in the Asia Pacific region. The development concept of "China's Beidou, the world's Beidou and first-class Beidou" is becoming a reality step by step, and the system has entered a new stage of sustained, stable and rapid development. Since its completion and opening in July 2020, Beidou system has always been committed to providing high-quality services to users all over the world and continuously optimizing performance indicators and expanding application modes on the premise of ensuring the stable operation of the system all day. In the follow-up, new satellites will be launched as planned to further improve the stability and reliability of the system operation, and carry out new technology test and verification to ensure the continuous iterative upgrading of the system. In recent years, the radiation and driving effect of Beidou System on economic and social development has been significantly enhanced, and the application depth and breadth have been continuously expanded. It has entered a key stage of market-oriented, industrialized and international development of large-scale applications. At present, China is promoting the construction of the national integrated positioning, navigation and time service (pnt) system with the next generation Beidou system as the core. By 2035, a more ubiquitous, integrated and intelligent national integrated positioning, navigation and time service system with Beidou system as the core will be built to provide core support for intelligent and unmanned development in the future. With the increasingly full tasks in the aerospace field, it is expected that the landscape of relevant industrial chains will continue to improve.
Focus on aviation, aerospace, informatization and new materials:
1) aviation equipment: both the surrounding situation and the construction of Navy and air force have put forward new requirements for military aircraft. At present, there is a large room for improvement in the number and structure of Chinese military aircraft. It is expected that with the national defense budget inclined to weapons and equipment, especially the air force and Navy, it is expected to accelerate the upgrading of military aircraft. The disclosure of large contract liabilities by many companies in the early stage may further improve the cash flow of the industrial chain and promote the production and delivery of products. We believe that aviation equipment will show a high boom during the 14th Five Year Plan period, driving the improvement of industrial chain performance. In addition, the reform of military pricing mechanism and the increase of equity incentive scheme will also promote the improvement of industry profit level. It is suggested that attention should be paid to the following: [ '' Avic Shenyang Aircraft Company Limited(600760) 123 ], [ Guizhou Aviation Technical Development Co.Ltd(688239) ], [ Chengdu Ald Aviation Manufacturing Corporation(300696) ], [ Jiangsu Maixinlin Aviation Science And Technology Corp(688685) ].
2) aerospace equipment: in terms of missile weapons and equipment, the main driving factors of the missile industry mainly come from: the first is the iterative period, the second is the increase in the demand for strategic reserves, and the third is driven by practical training. The missile sector may be the most flexible segment during the 14th Five Year Plan period, which will bring rapid performance thickening of relevant listed companies, pay attention to the overall opportunities of the missile sector, and focus on the targets with high performance flexibility and high proportion of missile business. It is suggested to pay attention to: [ Guizhou Space Appliance Co.Ltd(002025) ], [ Beijing Relpow Technology Co.Ltd(300593) ]. In terms of Satellite Internet, Beidou navigation: the year-on-year growth rate of Beidou satellite navigation industrial chain began to increase in 2021, and it is expected to maintain a high growth rate in 2022 and 2023. In Beidou navigation industrial chain, the demand for Beidou navigation chips and Beidou navigation terminals increased rapidly; In the field of Satellite Internet: China Spacesat Co.Ltd(600118) network group is expected to become the main force of China Spacesat Co.Ltd(600118) Internet. At present, although China Spacesat Co.Ltd(600118) Internet is still in its infancy, Satellite Internet will still become an important development direction of 6G mobile communication. Suggested attention: [ Chengdu Corpro Technology Co.Ltd(300101) ], [ Chengdu M&S Electronics Technology Co.Ltd(688311) ].
4) informatization sector: due to factors such as the localization process, military modernization and accelerated renewal of new models, it has continued to exceed the growth of the industry since 2018, focusing on military semiconductors, upstream electronic components, radar and electronic countermeasures, communication, navigation and remote sensing and other directions. The performance of some companies has taken the lead in entering the high-speed growth stage and is expected to continue in 2022. It is suggested to pay attention to: [ China Zhenhua (Group) Science & Technology Co.Ltd(000733) ], [ Unigroup Guoxin Microelectronics Co.Ltd(002049) ], [ Chengdu Zhimingda Electronics Co.Ltd(688636) ].
5) new materials: it is suggested to focus on the direction of superalloys, titanium alloys and carbon fiber composites. Due to many factors, such as domestic engine models and new supporting materials, the proportion of domestic engine models and new supporting materials has been continuously improved, and the supply of domestic engine models has been better represented by domestic manufacturers / manufacturers, and the supply of new supporting materials has been improved, It is expected that the future growth of the industry is highly deterministic, and the scale effect will continue to appear after the demand increases, driving the continuous decline of unit cost. Therefore, the gross profit margin of the industry may still have room to improve and gradually realize to profit, and has the possibility of urgent development to the civil market, with good long-term growth. It is suggested to pay attention to: [ Baoji Titanium Industry Co.Ltd(600456) ], [ Gaona Aero Material Co.Ltd(300034) ], [ Western Superconducting Technologies Co.Ltd(688122) ], [ Avic Aviation High-Technology Co.Ltd(600862) ].
Risk warning: the replacement of weapons and equipment is not as expected; The development of a new missile model was not as expected.
