Key investment points:
By the end of the week of 2021, the Shengong index had dropped by 3.68 million percentage points, ranking the first in the defense industry in Shanghai and Shenzhen; Shenwan defense and military industry fell 9.81% this month, 2.92 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 27th among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 21.96% year to date, 8.31 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries.
As of March 18, 2022, the performance of Shenwan national defense industry was poor this week except for the ground military equipment sector. From the performance of the last week, the ground military equipment sector performed best, up 0.63%. The performance of other sectors was as follows: the aviation equipment sector fell 1.08%, the navigation equipment sector fell 1.32%, the military electronics sector fell 2.48%, and the aerospace equipment sector fell 3.49%.
Defense Industry Week view: Shenwan defense industry sector has fallen by 21.96% since the beginning of the year, and the industry currently has a high safety margin. Under the impact of geopolitical events, countries will give priority to national defense and security issues. It is expected that the number of overseas orders will continue to increase, superimposing China’s demand for equipment upgrading during the 14th Five Year Plan period, forming a resonance between internal and external demand, which will contribute to the long-term improvement of industry performance.
Optimistic about the high prosperity of the industry under the demand for equipment upgrading during the 14th Five Year Plan period; From the perspective of usage, with the increase of actual training times, the loss of trainer aircraft and the replenishment of missile inventory are increased. We are optimistic about the aviation industry chain and the missile industry chain with high consumables. On the other hand, we are optimistic about the transfer and transformation of aerospace technology achievements to economy and society, the development of Beidou industrial chain under aerospace industry services and the Internet of things, and the development of special chips under the new round of digital currency reform. Suggestions and concerns: the focus of the proposal is to focus on the following issues: the focus of the proposal for the proposal: the focus of the proposal for the proposal: the focus of the focus: Aerospace Ch Uav Co.Ltd(002389) \ ( Gaona Aero Material Co.Ltd(300034) ), etc.
Risk warning: the number of new orders of the main engine factory is less than expected; The performance of military enterprises exceeded expectations and decreased; The risk of war between Russia and Ukraine.
