At the end of the 2021 annual report season, 91 listed companies in Shenwan defense and military industry sector have announced 2021 annual report or performance express, with an average revenue increase of 20.3% and an average net profit attributable to the parent company increase of 13.0%. The performance growth of Xi’An Triangle Defense Co.Ltd(300775) , Chengdu Corpro Technology Co.Ltd(300101) , Chengdu Ald Aviation Manufacturing Corporation(300696) , North Industries Group Red Arrow Co.Ltd(000519) and Zhuzhou Hongda Electronics Corp.Ltd(300726) released this week exceeded 60%. 16 listed companies released their first quarterly reports. The revenue growth rate of Xi’An Triangle Defense Co.Ltd(300775) first quarter exceeded 100%, and the growth rate of net profit attributable to the parent company exceeded 80% Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) , Chengdu Ald Aviation Manufacturing Corporation(300696) performance growth exceeded 40%. 26 listed companies released the first quarter performance forecast. The forecast net profit of North Industries Group Red Arrow Co.Ltd(000519) , China Zhenhua (Group) Science & Technology Co.Ltd(000733) increased by more than 100%, the forecast net profit of Wuxi Paike New Materials Technology Co.Ltd(605123) , Guizhou Aviation Technical Development Co.Ltd(688239) increased by more than 50%, and the forecast net profit of Avic Shenyang Aircraft Company Limited(600760) , Chengdu Rml Technology Co.Ltd(301050) increased by more than 30%.
The 73rd anniversary of the founding of the people’s navy. The 23rd is the 73rd anniversary of the founding of the Navy. On the 22nd, the Navy publicly released the first aircraft carrier themed promotional film “dark blue! Dark blue!”, As the first aircraft carrier themed propaganda film of the people’s navy, it shows the great achievements made in the transformation and construction of the Navy since the 18th National Congress, and implies at the end that the third aircraft carrier may be launched. Previously, the latest 075 amphibious assault ship Guangxi ship made its public debut for the first time. According to the military report of China Central Television on April 21, recently, the amphibious assault ship Guangxi, which has just been installed, has carried out basic training, focusing on the needs of future amphibious operations and high-sea operations, and continued to carry out navigation organization, damage control and other subjects in a certain sea area. In the program “military report” broadcast by China Central Television on April 22, there was a picture of zhi-20 anti submarine helicopter taking off and landing on 055 destroyer. This is also the first public appearance of zhi-20 anti submarine helicopter. The assembly of zhi-20 anti submarine helicopter will further improve the Navy’s anti submarine capability.
The boom expansion of the industrial chain is conducted in an orderly manner, and the value of sector stabilization and allocation is highlighted. Under the influence of market sentiment and other factors, the military industry sector experienced a sharp correction at the beginning of the year, and the logic of long-term boom expansion remained unchanged. The verification of advances received by downstream enterprises and the landing of large orders will be conducted in an orderly manner to the upstream and midstream along the industrial chain. During the “14th five year plan” period, the demand of supporting enterprises is highly deterministic. The CSI military industry index is valued at 50 times, which is at the 5% quantile value of historical PE. We continue to be optimistic about the value of sector allocation under the current position.
Grasp the main line of aviation equipment investment, and military electronics has high independent and controllable growth. 1) The aviation industry chain will continue to grow, and the payment received in advance will be verified. The performance transmission is effective. From the main engine plant and engine system, to the body system and parts, and then to the upstream raw material sector, the whole industry chain has strong momentum and certainty. The main engine manufacturer pays attention to Avic Shenyang Aircraft Company Limited(600760) , Avic Xi’An Aircraft Industry Group Company Ltd(000768) , Jiangxi Hongdu Aviation Industry Co.Ltd(600316) , Avicopter Plc(600038) , Aecc Aviation Power Co Ltd(600893) ; The body system pays attention to Avic Electromechanical Systems Co.Ltd(002013) , China Avionics Systems Co.Ltd(600372) , Aecc Aero-Engine Control Co.Ltd(000738) , Beijing Beimo High-Tech Frictional Material Co.Ltd(002985) ; Attention to aviation forgings and parts Avic Heavy Machinery Co.Ltd(600765) , Wuxi Paike New Materials Technology Co.Ltd(605123) , Guizhou Aviation Technical Development Co.Ltd(688239) , Xi’An Triangle Defense Co.Ltd(300775) , Chengdu Ald Aviation Manufacturing Corporation(300696) ; Attention to metal materials Fushun Special Steel Co.Ltd(600399) , Western Superconducting Technologies Co.Ltd(688122) , Baoji Titanium Industry Co.Ltd(600456) , Gaona Aero Material Co.Ltd(300034) , Jiangsu Toland Alloy Co.Ltd(300855) ; Composite materials focus on Avic Aviation High-Technology Co.Ltd(600862) , Weihai Guangwei Composites Co.Ltd(300699) , Sinofibers Technology Co.Ltd(300777) . 2) The certainty of missile weapons and equipment benefits from practical military training, and the independent and controllable military electronics in the field of high-end equipment brings high growth. Pay attention to Beijing Yuanliu Hongyuan Electronic Technology Co.Ltd(603267) , China Zhenhua (Group) Science & Technology Co.Ltd(000733) , Avic Jonhon Optronic Technology Co.Ltd(002179) , Guizhou Space Appliance Co.Ltd(002025) , Chengdu Rml Technology Co.Ltd(301050) , etc.
Risk tip: the epidemic repeatedly affects the macroeconomic environment; Equipment R & D progress and procurement progress are less than expected; Military procurement prices fell; Industry competition intensifies.
