Key investment points:
Market review: as of April 8, 2022, Shenwan defense industry fell 3.56% this week, 2.50 percentage points lower than the CSI 300 index and ranked 26th among Shenwan 31 industries; Shenwan defense industry fell 3.92% this month, 4.12 percentage points lower than the CSI 300 index, ranking 26th among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 26.31% year to date, 11.94 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries.
As of April 8, 2022, the performance of Shenwan national defense and military industry sector was poor this week. From the performance of the last week, the ground military clothing sector fell the least, down 1.29%. Other sectors showed as follows: the navigation equipment sector fell 2.01%, the aerospace equipment sector fell 2.26%, the military electronics sector fell 2.42%, and the aviation equipment sector fell 5.33%.
Weekly view of Defense Industry: Shenwan defense industry sector has fallen by 26.31% since the beginning of the year. At present, Shenwan defense industry PE is 70.33 times, and the current valuation is 17.05% lower than the average value of recent one year. From the performance data recently released by military enterprises, the revenue of most military enterprises has increased significantly, the net profit of most military enterprises has increased positively, and there has been a significant deviation between sentiment and fundamentals.
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 on the subject matter: Aecc Aero-Engine Control Co.Ltd(000738) ( Aecc Aero-Engine Control Co.Ltd(000738) ), Xi’An Triangle Defense Co.Ltd(300775) ( Xi’An Triangle Defense Co.Ltd(300775) ), Avic Heavy Machinery Co.Ltd(600765) ( Avic Heavy Machinery Co.Ltd(600765) ), Unigroup Guoxin Microelectronics Co.Ltd(002049) ( Unigroup Guoxin Microelectronics Co.Ltd(002049) ), China Zhenhua (Group) Science & Technology Co.Ltd(000733) ( China Zhenhua (Group) Science & Technology Co.Ltd(000733) ), Western Superconducting Technologies Co.Ltd(688122) ( Western Superconducting Technologies Co.Ltd(688122) ), Gaona Aero Material Co.Ltd(300034) ( Gaona Aero Material Co.Ltd(300034) ), etc.
Risk warning: the number of new orders due to the decline of market demand is less than expected; The performance of military enterprises decreased more than expected due to the high R & D cost; The price rise of upstream materials caused by the risk of Russian Ukrainian war.
