Key investment points:
Market review: as of January 21, 2022, Shenwan defense and military industry fell 5.61% this week, losing 6.72 percentage points to the Shanghai and Shenzhen 300 index and ranking 30th among Shenwan 31 industries; Shenwan defense industry fell 15.33% this month, 12.07 percentage points lower than the CSI 300 index, ranking 31st among Shenwan 31 industries; Shenwan defense and military industry sector has fallen 15.33% year to date, 12.07 percentage points lower than the Shanghai and Shenzhen 300 index, ranking 31st among Shenwan 31 industries.
As of January 21, 2022, the five sub sectors of Shenwan defense and military industry have performed poorly. From the performance of the recent week, the military electronics sector had the smallest decline of - 2.64%. The performance of other sectors is as follows: the aerospace equipment sector fell 3.09%, the navigation equipment sector fell 3.74%, the ground military equipment sector fell 6.98%, and the aviation equipment sector fell 8.65%.
View of Defense Industry Week: this week, the profit growth rate of two enterprises Avic Shenyang Aircraft Company Limited(600760) and Avic Electromechanical Systems Co.Ltd(002013) under the aviation industry group was far lower than the market expectation. The stock trend of the two leading enterprises fell sharply, which led to a large correction in the whole aviation equipment sector. The Avic Shenyang Aircraft Company Limited(600760) explained that the R & D investment and general profit decreased in the fourth quarter. It is expected that the market will revalue the industry and there may be large fluctuations in the short term; However, it does not change the prosperity of the industry during the 14th Five Year Plan period. For details, please refer to the performance of middle and upper reaches enterprises. It is suggested to pay attention to the layout opportunities after substantial adjustment of the industry and wait for the dawn. 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 uncertainties. As a key counter cyclical sector, the military industry sector is less affected by global economic events, and the industry as a whole is improving with high certainty. 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 missile inventory replenishment 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: Xi'An Triangle Defense Co.Ltd(300775) (300775), 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), etc.
Risk warning: the number of new orders of the main engine factory is less than expected; Enterprise reform is not as expected; The epidemic worsened more than expected.
