2022 is the initial stage of the “14th five year plan” reloading cycle. At present, the key military support group aviation industry units are focusing on the main responsibility and main business, carefully organizing scientific research and production tasks, and striving to make a good start in the first quarter.
Main engine unit of aviation industry: starting is a decisive battle, and starting is a sprint. Welcome the “20th National Congress” with practical actions Avic Xi’An Aircraft Industry Group Company Ltd(000768) : take the main responsibility of the main engine, adhere to scientific and technological innovation, balanced delivery, and ensure that all work such as production and delivery in the first quarter are completed according to nodes with the drive of “plan is discipline, starting is a decisive battle, and starting is a sprint”, so as to win a good start in the first quarter.
Aviation industry Shenfei: under the situation of increasing model development and production tasks, adhere to plan traction and process drive, promote lean production management with information construction, ensure the smooth completion of various tasks and the smooth progress of various flight test tasks of Shenfei.
Hongdu of aviation industry: following the successful opening of the first flight of the new year on January 5, up to now, it has successively completed multiple transfer deliveries, orderly promotion of parts production and early start of service guarantee… In order to achieve a “good start” in the first quarter and complete the scientific research and production tasks of the whole year, Hongdu has made unremitting efforts to promote the implementation and effectiveness of the 14th five year plan, and welcomed the convening of the 20th National Congress of the Communist Party of China with practical actions.
Midstream production units: promote effective and stable growth and ensure timely delivery
Aviation industry anda ( Avic Heavy Machinery Co.Ltd(600765) subsidiary): implement the “quality on time delivery”, focus on building a “competitive market capacity”, promote the company to achieve “effective and stable growth”, and make a good start to achieve the annual production and operation objectives. As of the beginning of March, the product output value of Anda has exceeded two-thirds of the target plan of the first quarter. The leaders of the company actively visited customers to understand the equipment demand, product quality and opinion reflection, visited research institutes to strive for scientific research orders, visited brother units to learn good experience and good practices, and played a game of chess in the company to ensure timely delivery.
Design and R & D unit: the flight test mission has been steadily promoted, and the airworthiness certification and natural icing mission of a certain type of aircraft has been completed more than expected
To overcome the impact of the epidemic situation, Chengdu airlines will make full efforts to ensure the smooth and steady flight of the field for the first time.
Avic-1: the completion of scientific research tasks in the first quarter was better than expected, the overall stability and controllability, the steady progress of key models, and the successful completion of the set goals; A number of products such as avionics, electromechanical and power supply have been delivered to users to achieve a smooth start in the production and delivery of products of the annual research institute; In 2022, the number of model tasks, heavy workload and urgency of time nodes undertaken by the first Aviation Institute of aviation industry will refresh history.
Aviation industry flight test center: with the high attitude that the start is the sprint and the start is the decisive battle, focusing on the theme of “innovation”, the scientific research flight test of key models is carried out orderly and efficiently in many places. The airworthiness certification and natural icing test flight of a certain type of aircraft in the key project exceeded the expectation to complete the task.
In February this year, the relevant person in charge of the SASAC said that in the next step, the state-owned central enterprises will adhere to the principle of stability and seek progress while maintaining stability, go all out to achieve a stable start in the first quarter, and make greater contributions to stabilizing the macro-economic market and maintaining the stability of the overall social situation. We believe that the aviation industry will be in the stage of continuous capacity release in 2022, with strong production demand for mass-produced products, full tasks of R & D models, medium and long-term high prosperity will continue to strengthen, and the performance of the sector may exceed expectations in the first quarter.
Investment suggestions:
It is expected that the enterprise valuation needs to be repaired under the stable and high boom. We believe that the military industry sector may continue to be the preferred sector of institutional allocation under the background of high prosperity (the preference of over allocation represents positive). Although a few central enterprises have performed lower than expected recently due to the impact of “stable growth” and “equity incentive”, The sector may have completed the digestion of the impact through adjustment (for example, Avic Electromechanical Systems Co.Ltd(002013) , Avicopter Plc(600038) etc. return to the bottom area of the 5-year historical valuation 10% quantile value), and the sector enters the stage of stabilizing and undervaluing the value (the quantile of the historical valuation of the sector is about 20%).
At present, there is no negative situation in the medium and long-term fundamentals of the industry. The logic of weapons and equipment volume continues to strengthen and the progress of new models exceeds expectations. It is recommended to continue to focus on the current high cost performance stage of valuation – the field of promoting the growth rate of new models / new processes in 20222024, and the target with strong valuation advantages after the valuation switch in 2023.
It is recommended to pay attention to the following related stock targets:
1. Materials and processing enterprises in the chain of the flight ”’industry chain and processing like enterprises in the materials and processing of the materials and processing of the industry’chain of the industry chain: the following: ducducducducducducducfromthe materials and processing of the materials and processing of the industry chain:: ‘1 1. The industry chain of the industry’s chain of the industry’s chain of the industry’s chain of the industry’s chain of the industry’s Chain: the following: 60076 Avic Heavy Machinery Co.Ltd(600765) for the theaero-engine industry chain, which is in the expansion period, has entered the repair stage of high prosperity track.
2. New military products market stocks driven by new opportunities such as Chengfei UAV industry chain: Chengdu Ald Aviation Manufacturing Corporation(300696) , Sinofibers Technology Co.Ltd(300777) , Guoguang Electric Co.Ltd.Chengdu(688776) , Xi’An Triangle Defense Co.Ltd(300775) , Avic Aviation High-Technology Co.Ltd(600862) , etc;
3. Steady growth military electronics and missile information enterprises with strong valuation advantages: Unigroup Guoxin Microelectronics Co.Ltd(002049) , capacitor enterprises, Chengdu Zhimingda Electronics Co.Ltd(688636) , China Zhenhua (Group) Science & Technology Co.Ltd(000733) , Jiayuan technology, etc;
4. State owned enterprise reform main engine factory enterprises: Avic Shenyang Aircraft Company Limited(600760) , Avic Xi’An Aircraft Industry Group Company Ltd(000768) , Avicopter Plc(600038) , Avic Electromechanical Systems Co.Ltd(002013) , Hefei Jianghang Aircraft Equipment Co.Ltd(688586) , etc
Risk warning: the price rise of metal raw materials exceeds the market expectation; The rising cost of raw materials cannot be transmitted to the downstream; The order issuance and delivery did not meet the expectations, the development and assembly of new equipment did not meet the expectations, the capacity construction process did not meet the expectations, and the reform process of state-owned enterprises did not meet the expectations.
