Core ideas of this week
1) the US F35 and j-20 fighters met at close range, and the Ministry of defense responded. According to the global times, wilsback, commander of the US The Pacific Securities Co.Ltd(601099) air force, talked about the role of China’s new fighter in a video conversation at the Mitchell Institute of Aeronautics and Astronautics of the US Air Force Association. Referring to the recent close encounter between the U.S. F-35 fighter and the Chinese j-20 fighter over the East China Sea, wilsback said: “the j-20 fighter is quite professional and its command and control ability is impressive; some Chinese ultra long-range air-to-air missiles have been assisted by the air police-500 early warning aircraft, and the United States is very interested in breaking the Chinese Cooperative killing chain.” On March 31, the Ministry of defense held a regular press conference, Senior Colonel Wu Qian, spokesman of the Ministry of national defense, responded to this: “In recent years, China’s armed forces have made considerable progress in building weapons and equipment, including the main combat equipment of the air force, but there is still much room for development. China is soberly aware of this. For a long time, US ships and aircraft have conducted large-scale and high-frequency proximity reconnaissance and provocation and deterrence against China, which has seriously undermined the mutual trust between the Chinese and US armed forces and seriously endangered the safety of ships, aircraft and personnel of both sides. China is firmly opposed to this. The people’s air force has the responsibility to protect the national airspace The sacred duty of safety. It must be emphasized that on the issue of safeguarding national sovereignty and security, the Chinese people’s Liberation Army has always dared to light its sword and is good at it. ” During the 14th Five Year Plan period, the whole army accelerated the modernization of weapons and equipment, resolutely thwarted all interference from external forces, continued to release relevant needs, and the military industry chain may continue to benefit.
2) China’s first solid bound carrier rocket was successfully launched, and the “three stars with one arrow” completed its annual debut the next day of the Long March 11. According to China Central Television, on March 29, China successfully launched the Long March 6 carrier rocket at Taiyuan Satellite Launch Center. The launched Pujiang 2 and Tiankun 2 satellites successfully entered the predetermined orbit, and the launch mission was a complete success. The launch vehicle is China’s new generation of non-toxic and pollution-free launch vehicles. It is China’s first solid bound launch vehicle. It is used to launch solar synchronous orbit satellites. This mission is the 412nd flight of long march series launch vehicles. The successful maiden flight of the Long March 6 modified carrier rocket has enabled China to break through a series of technologies such as solid-liquid binding and promoted the innovative development of a new generation of carrier rockets. The first stage of the rocket core adopts two 120 ton thrust liquid oxygen kerosene engines, and the second stage adopts one 18 ton thrust liquid oxygen kerosene engine. The core level is bundled with four boosters with a diameter of 2 meters. Each booster is equipped with a solid motor with a thrust of 120 tons, which successfully realizes the “cross-border cooperation” between solid power and liquid power, and gives full play to the advantages of high performance, long working time, large thrust and simple use and maintenance of liquid motor. The next morning, China successfully launched tianping-2 satellites a, B and C with a long March 11 carrier rocket at Jiuquan Satellite Launch Center. The satellite successfully entered the predetermined orbit and the launch mission was a complete success. This mission is the 413rd flight of the long march series of launch vehicles and the first launch mission of the Long March 11 rocket in 2022. So far, the Long March 11 rocket has completed 10 land launches and 2 sea launches, creating a good record of 12 consecutive victories. 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. The military new material technology has basically achieved independent control and represents China’s leading level, and the dual / multi flow system of model certification makes the suppliers limited, and the competition pattern on the supply side is good. On the demand side, due to the large volume of main battle models and supporting engines, the increasing proportion of new material applications, the increasing outsourcing proportion of main engine manufacturers, domestic substitution and other factors, it is expected that the future growth of the industry will be highly certain, Moreover, after the demand increases, the scale effect will continue to appear, driving the continuous decline of unit cost. Therefore, the gross profit margin of the industry may still have room to improve and gradually realize the 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.
