Key investment points:
Market review: as of April 1, 2022, Shenwan defense industry fell 2.28% this week, 4.71 percentage points lower than the CSI 300 index and ranked 30th among Shenwan 31 industries; The national defense industry of Shenwan fell 13.13% in the past month, losing 5.70 percentage points to the CSI 300 index and ranking 30th among the 31 industries of Shenwan; Shenwan defense and military industry sector has fallen 23.59% year to date, 10.14 percentage points lower than Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries.
As of April 1, 2022, the performance of Shenwan national defense and military industry sector is different. From the performance of the last week, the ground military equipment sector performed best, up 1.05%. Other sectors showed as follows: the navigation equipment sector fell 0.83%, the military electronics sector fell 1.39%, the aerospace equipment sector fell 2.09%, and the aviation equipment sector fell 3.79%.
View of Defense Industry Week: this week, most military enterprises announced their performance in 2021. According to the released data, the performance of mid and upper reaches enterprises increased significantly in 2021, and the prosperity of the industry was confirmed. 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 for the proposal concern: Aecc Aero-Engine Control Co.Ltd(000738) \ ( 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.
