Key investment points:
Market review: as of January 7, 2022, Shenwan defense industry fell 7.47% this week, losing 5.08 percentage points to the Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries; Shenwan defense and military industry fell 7.47% this month, losing 5.08 percentage points to the Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 7.47% year to date, 5.08 percentage points lower than Shanghai and Shenzhen 300 index, ranking 30th among Shenwan 31 industries.
As of January 7, 2022, the performance of five sub sectors of Shenwan national defense industry was poor. From the performance of the recent week, the navigation equipment sector had the smallest decline of -0.97%. The performance of other sectors was as follows: the aerospace equipment sector fell 4.22%, the military electronics sector fell 6.85%, the ground military equipment sector fell 8.46%, and the aviation equipment sector fell 9.87%.
View of Defense Industry Week: the defense industry sector has a large correction this week, and short-term fluctuations do not change the long-term logic of the industry; At present, the plate has a good safety margin. In the long run, geopolitical events are becoming more and more complicated, and the number of global military exercises is becoming more and more frequent. Only by improving our military strength can we better deal with the increasingly complex world situation; The new variant virus has increased global uncertainty. As a key counter cyclical plate, the military industry plate is less affected by global economic events, and the industry as a whole is better and more certain. 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, and 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 development of Beidou industrial chain under the Internet of things and the development of special chips under the new round of digital currency reform. Suggestions on the subject: Aecc Aviation Power Co Ltd(600893) (600893), Avic Shenyang Aircraft Company Limited(600760) (600760), Unigroup Guoxin Microelectronics Co.Ltd(002049) (002049), China Zhenhua (Group) Science & Technology Co.Ltd(000733) (000733), Fushun Special Steel Co.Ltd(600399) (600399), Western Superconducting Technologies Co.Ltd(688122) (688122), Gaona Aero Material Co.Ltd(300034) (300034), Avic Electromechanical Systems Co.Ltd(002013) (002013), Avic Heavy Machinery Co.Ltd(600765) (600765), etc.
Risk warning: the number of new orders in the main engine plant is less than expected; Enterprise reform is not as expected; The epidemic worsened more than expected.
