Key investment points:
Market review: as of January 14, 2022, Shenwan defense industry fell 3.06% this week, 1.07 percentage points lower than Shanghai and Shenzhen 300 index, ranking 25th among Shenwan 31 industries; Shenwan defense and military industry fell 10.30% this month, losing 5.97 percentage points to the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 10.30% year to date, losing 5.97 percentage points to the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries.
As of January 14, 2022, the five sub sectors of Shenwan national defense and military industry had performed poorly. From the performance of the recent week, the aerospace equipment sector had the smallest decline of – 1.18%. Other sectors showed as follows: the ground military equipment sector fell 2.52%, the military electronics sector fell 2.55%, the navigation equipment sector fell 2.64%, and the aviation equipment sector fell 3.84%.
Zhou’s view of the national defense industry: there has been a large correction in the national defense industry sector recently, which may be related to the reduction of the holdings of main engine manufacturers and the cashing of some profit-making funds. Looking forward to the whole “14th five year plan” period, the orders of the military industry sector are sufficient, and the basic logic of the industry has not changed greatly. 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 sector, the military industry sector 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), 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.
