Core ideas of this week
1) SASAC summarized the operating performance of central enterprises in 2021, and the net profit of 1.8 trillion increased by 29.8% year-on-year. On January 19, the SASAC held a press conference at the Information Office of the State Council. Peng Huagang, member of the Party committee, secretary general and spokesman of the SASAC, pointed out that 70% of the objectives and tasks of the three-year action of state-owned enterprise reform in 2021 were successfully completed, and the operating revenue of central enterprises was 36.3 trillion yuan, a year-on-year increase of 19.5% and an average increase of 8.2% in two years; The total profit was 2.4 trillion yuan and the net profit was 1.8 trillion yuan, with a year-on-year increase of 30.3% and 29.8% respectively, and the average growth rate in the two years was 14.5% and 15.3% respectively. Operating income profit margin, total labor productivity, R & D investment intensity and asset liability ratio have fully achieved the expected objectives. In the next step, under the guidance of the Xi Jinping thought of socialism with Chinese characteristics in the new era, the SASAC and central enterprises will highlight the three-year action of stabilizing growth, fighting a decisive battle and winning the reform of state-owned enterprises, strengthen scientific and technological innovation of enterprises, optimize the layout of state-owned capital, prevent and resolve major risks, give full play to the leading and guarantee role of Party building, and contribute to the work of “six stabilities” and “six guarantees” Contribute to maintaining the stability of the overall economic and social situation and welcome the victory of the 20th CPC National Congress with practical actions. As an important part of China’s central enterprises, state-owned military enterprises provide guarantee for the performance growth of central enterprises in 2021, and the performance of each group this year is also worth looking forward to. In addition, as the last year of the three-year plan for the reform of state-owned enterprises, the relevant reform progress of the military industry group deserves continuous attention.
2) in 2021, China’s space launch reached a record high of 55 times, ranking first in the world. According to the people’s daily, the number of China’s space launches reached a new high in 2021. Including the long march series rockets, fast boat series rockets and rockets developed by private aerospace enterprises, 55 launch missions were carried out throughout the year, sending hundreds of spacecraft into space. Among them, the long march series carrier rockets completed the 400th launch, and the Long March 5 B, Long March 2 F and Long March 7 successfully completed the construction task of the manned Changzheng Engineering Co.Ltd(603698) space station in that year with five launches, sending the Tianhe core module, two groups of astronauts and two cargo spacecraft into space respectively. In 2021, the on orbit construction of the Chinese space station was fully carried out. Two groups of Chinese astronauts entered their own space station on behalf of the Chinese people and carried out a space stay for up to six months. In 2020, the “tianwen-1” probe launched by the Long March 5 carrier rocket also landed on Mars in 2021 and successfully realized patrol exploration. On October 14, 2021, China’s first solar exploration satellite “Xihe” successfully entered the predetermined orbit, and China officially entered the “era of solar exploration”. Aerospace experts pointed out that the successful implementation of major Aerospace tasks and the smooth progress of planning are of great significance to realize new leaps in the field of aerospace technology and promote China’s transformation from a major Aerospace country to a powerful Aerospace country. With the increasingly full tasks in the aerospace field, it is expected that the landscape of relevant industrial chains 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 to pay attention to: [ Avic Shenyang Aircraft Company Limited(600760) ], [ Avic Xi’An Aircraft Industry Group Company Ltd(000768) ], [ Jiangxi Hongdu Aviation Industry Co.Ltd(600316) ], [ Aecc Aviation Power Co Ltd(600893) ], [ Avic Electromechanical Systems Co.Ltd(002013) ], [ Hefei Jianghang Aircraft Equipment Co.Ltd(688586) ], [ Avic Jonhon Optronic Technology Co.Ltd(002179) ], [ Avic Heavy Machinery Co.Ltd(600765) ], [ Wuxi Paike New Materials Technology Co.Ltd(605123) ], [ 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 give priority to 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) ] and [ 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; Satellite internet field: 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 the early stage of development, Satellite Internet will still become an important development direction of 6G mobile communication. It is suggested to pay attention to: [ Chengdu Corpro Technology Co.Ltd(300101) ] and [ 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. Military new material technology has basically achieved self-control and represents China’s leading level, and the dual / multi flow system of model certification makes suppliers limited, and the competition pattern at the supply side is good. At the demand side, due to the large volume of main battle models and supporting engines, the proportion of new material application continues to increase, the outsourcing proportion of main engine manufacturers, domestic substitution and other factors, It is expected that the future growth of the industry is highly deterministic, and the scale effect will continue to appear after the demand increases, driving the continuous decline of unit cost. Therefore, the gross profit margin of the industry may still have room to improve and gradually realize to 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.
