Event: on May 18, Weng Jieming, deputy director of the state owned assets supervision and Administration Commission of the State Council, said at the promotion meeting of “deepening the reform of state-controlled listed companies and striving to be a three-year action model for the reform of state-owned enterprises”, we should continue to strengthen the injection of high-quality assets into listed companies, explore qualified multi sector listed companies to spin off, revitalize or withdraw from inefficient and ineffective listing platforms.
Continue to increase the injection of high-quality assets into listed companies, and the asset quality of listed central enterprises in military industry will be effectively improved; On the whole, the asset securitization rate of China military industry group is low, because most of the assets of institutes involve national strategic security and core secrets, so it is difficult to realize asset securitization. Among the top ten military industrial groups, Aerospace Hi-Tech Holding Group Co.Ltd(000901) , aerospace science and industry and China Electronics Technology Group have low asset securitization rates. However, the enterprise assets with strong dual-use, high degree of marketization and low degree of confidentiality in the sector are feasible to be listed. SASAC proposed to “continue to increase the injection of high-quality assets into listed companies”, which will further improve the asset quality of military listed central enterprises and enhance the profitability of the company.
Flexibly promote the entry of high-quality assets into the market, and the entry process of assets into the market is expected to accelerate. The ways to promote the entry of high-quality assets into the market include gradually injecting the existing unlisted high-quality assets into listed companies in a planned way in combination with the actual situation, and listing separately if necessary; For the spin off and listing of multi sector listed companies, support the spin off and listing of subsidiary enterprises that are conducive to straightening out the business structure, highlighting the advantages of the main business, optimizing the industrial layout and promoting the realization of value; 2022 is the year when the “three-year action of state-owned enterprise reform” ends, and the entry of high-quality assets into the market is expected to accelerate. As the focus of reform, the military industry group, with the increase of asset securitization rate, will effectively take advantage of the capital market, strengthen and refine its main business, promote two-way and further improve its performance.
Investment suggestion: it is suggested to pay attention to high-quality companies of high prosperity track: AVIC, Avic Shenyang Aircraft Company Limited(600760) , Avicopter Plc(600038) , Jiangxi Hongdu Aviation Industry Co.Ltd(600316) , Aecc Aviation Power Co Ltd(600893) , Avic Xi’An Aircraft Industry Group Company Ltd(000768) , China Avionics Systems Co.Ltd(600372) ;
Risk tip: the growth of military industry is less than expected; The order type is less than expected; The number of orders is less than expected; The epidemic continues to affect the market; The company’s product R & D progress is less than expected; The company’s production capacity is lower than expected; The company’s internal control is less than expected.
