Core ideas of this week
1) on the 73rd anniversary of the founding of the people’s navy, 075 amphibious assault ship No. 2 made its debut. 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. Guangxi ship (No. 32) is the same as the Hainan ship listed before, and belongs to China’s 075 amphibious assault ship. According to a previous report by China Central Television, as the first amphibious assault ship independently developed by China, Hainan ship can carry amphibious armored vehicles, multi type helicopters, hovercraft and tank armored vehicles, equipped with missiles, naval guns, electronic warfare and other weapon systems. According to the public information, the Guangxi ship was launched on April 22, 2020 and the ship name was announced at the end of December 2021. It took about 18 months in total. Compared with the Hainan ship, which took 19 months in total, the construction speed is further. In addition, according to the news picture broadcast by China Central Television on April 21 on the “noon national defense and military” program, the newly listed 0.55 million ton destroyers Anshan and Wuxi participated in the actual combat training. This is also the fourth and fifth type 055 destroyers listed after Nanchang, Lhasa and Dalian. In recent years, the Chinese navy has developed rapidly, and a new generation of large surface ships have been put into service and carried out combat training. It is expected that the ship and its supporting industrial chain will benefit from this high boom link.
2) China will set about establishing a near Earth Asteroid defense system to contribute to the protection of the earth and human security. April 24 is China’s space day. China Central Television reported that China will start to establish a near Earth Asteroid defense system to jointly deal with the threat of near earth asteroid impact. Asteroid impact is a major potential catastrophic threat to the life of the earth. The probability of occurrence is very low, but the harm is great. How to deal with it has attracted much attention. Wu Yanhua, deputy director of the National Space Administration, said that we should strive to conduct a close observation of a threatening asteroid at the end of the 14th five year plan or in 2025 and 2026, implement a nearby impact, and conduct technical experiments on changing its orbit, so as to make China’s new contribution to dealing with the threat of extraterrestrial objects such as asteroids to the earth’s home in the future. Huang Zhicheng, an aerodynamics scientist and aerospace technology expert, said that at present, the exploration of asteroids in the international aerospace community is a hot spot. Generally speaking, there are three purposes. One is to defend asteroids and prevent them from causing damage to the earth. “Once a large asteroid hits the earth, it will release energy equivalent to dozens of nuclear bombs, which will not only cause huge losses to the earth, but also destroy human beings on the earth. Therefore, the current defense of asteroids has been put on the agenda of the international aerospace community.” The second is to develop asteroids and make use of the useful mineral resources on asteroids. “There are many important minerals on asteroids. If the minerals of asteroids are developed and taken back, they can serve the development of human society.” Third, academic research. In the process of detecting asteroids, we can carry out basic research on the formation of celestial bodies and the origin of human life. At present, the state attaches great importance to the construction work in the aerospace field, and the relevant tasks are becoming more and more full. It is expected that the landscape of the strategic aerospace related industrial chain 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.
