Market review: as of March 25, 2022, Shenwan defense and military industry rose 0.20% this week, outperforming the Shanghai and Shenzhen 300 index by 2.34 percentage points and ranking 10th among Shenwan 31 industries; Shenwan defense and military industry fell 9.63% this month, 0.75 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 20th among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 21.80% year to date, 6.30 percentage points lower than Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries.
As of March 25, 2022, Shenwan’s national defense and military industry has performed differently. From the performance of the recent week, the aviation equipment sector performed best, up 1.40%. Other sectors showed as follows: the ground military equipment sector fell 1.03%, the aerospace equipment sector fell 0.41%, the military electronics sector fell 0.60%, and the navigation equipment sector fell 2.22%.
Zhou viewpoint of Defense Industry: after the baptism since the beginning of the year, the industry currently has a high safety margin. According to the current performance status of the industry, the valuation is underestimated. The equity incentive plan of the industry has been promoted, such as Guizhou Aviation Technical Development Co.Ltd(688239) , Beijing Emerging Eastern Aviation Equipment Co.Ltd(002933) , Soviet test experiment, etc; At the same time, large orders continue to be placed, such as Sinofibers Technology Co.Ltd(300777) , Kuang-Chi Technologies Co.Ltd(002625) , Guangzhou Haige Communications Group Incorporated Company(002465) , Wuhan Guide Infrared Co.Ltd(002414) , and the short-term demand of the industry has not decreased; In the long run, under the impact of geopolitical events, 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 is less than expected; The performance of military enterprises exceeded expectations and decreased; The risk of war between Russia and Ukraine.
