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Financial commentary
Posted 2018-04-17 02:41:24 Share it on the web version
                        Military industry inflection point is approaching Investment opportunities in three areas are significant (with accompanying shares)
Source: China Securities News Editor: Oriental Wealth

Yesterday, the stocks in the military industry sector rose or fell. Among them, Yonggui Electric Appliances, Zhongbing Hongjian, and Zhongxin Haizhi stocks rose significantly. It is worth noting that the military sector, which has been underperforming for a long time in the past, has risen more than 20% since it rebounded from the broader market in mid-February this year, ranking among the top gainers.

In this regard, market participants said that fundamentals and news surface resonance, overlapping market risk appetite and valuation systems are switching: the new unicorns in the new economy, high-tech areas began to value revaluation, with representatives in the military sector Sexual fighter jets, helicopters, armored vehicles, and other companies have high barriers, high technology, and high monopoly characteristics, and their values ​​have begun to be recognized by the market. Three factors caused the recent rise in the military sector.

Disadvantage Dissipation

In the past two years, in addition to the high valuation factors, the fundamental deterioration has been caused by the following: First, the delay in orders for military products brought about by military reform; Second, the stagnation of military asset securitization in 2017, resulting in a difficult trend in the military sector during the period. Quote: Shenwan’s defense industry index fell by 19% in 2016, ranking fifth in the 28 SWFs in the industry; SWD’s defense industry index fell by 17% in 2017, ranking the penultimate sector in 28 SWS. four.

Some brokerages believe that the fundamentals of the industry have reached a freezing point in 2017, and gradual improvement in the future is a high probability event. On the one hand, the phased impact of military reform gradually weakens, and military orders growth will re-accelerate. Positive phenomena have recently emerged. For example, the entire aircraft manufacturer Shenqi Shenfei’s 2017 earnings of 706 million yuan significantly exceeded market expectations, and information equipment suppliers Hager Communications Military orders continued to land. Looking at the expansion of military weapons and equipment procurement practices and the restructuring system, the order growth of military-industrial enterprises in the next three years will be sustained. It is expected that military orders will increase significantly in 2018, especially in areas where new models are released.

On the other hand, staged stagnation of asset securitization does not mean stoppage. After AVIC Shenfei completed its assets reorganization and listing, it was evaluated on the SASAC website as "It is aviation industry that deepens civil-military integration, mixed economic ownership reform, and core military asset securitization. "An active exploration" and passing a positive affirmative attitude, the asset securitization of military assets is still the trend of the industry.

It can be seen that since 2017, major military-industrial groups have restructured one by one, and all state-owned enterprises have been transformed into wholly state-owned companies. The name of the company has changed from “XX Group Company” to “XX Group Co., Ltd.” and the ownership and decision-making power of the company after restructuring Separation of management rights, more clearly defined powers and responsibilities, this may be to pave the way for subsequent mixed changes and other actions.

Long-term investment opportunities

Because of the special labels of the military industry—“high valuation”, “low growth performance and poor stability”, “large volatility” and “subject concept”, some investors chose to evade it. However, on the other hand, the stocks such as AVIC Aircraft, AVIC Electromechanical, and Zhongzhi Co., Ltd. have rebounded from the bottom since the rebound in volume and price, and there has been no sign of peaking. The conflict between cognition and phenomena makes investors confused about the configuration of the military sector.

Shen Wanhongyuan analyst pointed out that the mid- and long-term basic aspects of the military sector are good, and the short-term sentiment catalysed a rebound. In the future, it is expected that the leading stocks will drive out the medium and long-term market. In the medium and long term, with the changes in the international situation and the stabilization of domestic policies, strengthening the strong army is an important component of the concept of a strong country. With the gradual advancement of the strong military policy, the certainty and urgency of the new target of strengthening the military are strengthened. Procurement cycle, model release, order confirmation and policy intensive release catalyze many favorable factors. Military industry has long-term investment opportunities.

Optimistic about investment opportunities in military aircrafts, tanks, infantry fighting vehicles, and helicopters. It is recommended that there be a margin of safety, with emphasis on recommending both growth and valuation, or growth to identify low or scarce varieties.

Fund codeFund abbreviationNear-month earningsFeesoperating
001266SDIC UBS Lucky Mix13.29%1.50% 0.15%buy Open an account to buy
002251China Military Security Mix11.42%1.50% 0.15%buy Open an account to buy
001679Qianhai Open Source China Scarcity Asset Mix A11.13%1.50% 0.15%buy Open an account to buy
000800Chinese Business Future Blend8.46%1.50% 0.15%buy Open an account to buy
002983Long letter Defence Military Quantitative Mix7.59%1.50% 0.15%buy Open an account to buy
Source: Oriental Wealth Choice Data, Galaxy Securities, Deadline: 2018-04-16


Posted on 2018-04-17 02:51:33
                            歼31 expansion and production
Posted on 2018-04-17 06:37:08
                            Why is it up?
Space development will not rise before the increase! State-owned central enterprises generally do not reduce their holdings!
Military: Ten Department of Aerospace Science and Technology!
Inject missile launch assets expected, vehicle networking, sensors, industrial Internet, aerospace three homes the only listed platform, Beidou navigation, aerospace science and technology 000901 will send high? 31 yuan broke through 38%!
Jesse technology, military 5G, big power Tiantian FAST, increase the price of 30 yuan break 40%!
Since ancient times, Niugu shares! The next Jiulian development? The reform of state-owned enterprises pioneered the development of long-term cooperation to inject Poly military?
The price-earnings ratio is only 24 times the 32 East China Computer, will it be a total of seven listed platforms?
“Currently, China Electronics has established the China National Electric Instrument and Instrument Co., Ltd. (“CLP Instruments”) with 40 centers and 41 centers as its core, and established China as the core with 30 and 33 centers. Electronic Technology Network Information Security Co., Ltd. (abbreviated as "China Net Security"), has established seven companies, thirty-four, thirty-nine, fifty, fifty-four, etc. The Communications Division established the Zhongdian Science and Technology Group Chongqing Acoustic Optoelectronics Co., Ltd. with 24, 26, and 44 centers as cores. The joint ten, twenty, forty-one, fifty Four, twenty-eight, fourteen, and thirty-two were jointly established with Sichuan Province and Chengdu City by CEC Aviation Electronics Co., Ltd. (abbreviated as “CNA”), established by relying on 58 Kexin IC Co., Ltd. etc."
Posted on 2018-04-17 07:03:49
                            Breaking Your Ghost Ice CITIC Sea Straight Up Hainan
Posted on 2018-04-17 07:18:08
                            Is the national aircraft carrier rare? Are technical barriers high? Is the monopoly high? However, the stock has collapsed.
Posted on 2018-04-17 07:29:14
                            Still 600,306 market value is small
Posted on 2018-04-17 07:32:08
                            Soldier Red Arrow
Posted on 2018-04-17 07:33:53
                            Soldier Red Arrow: Smart Ammunition First Unit
Posted on 2018-04-17 10:09:10
                            Pretty national weapon, launch a beautiful rocket i
Posted on 2018-04-17 10:34:24
                            Tencent Co., Ltd. 300392 Exclusive advertising agency for gaming and horse racing in Hainan Island!
Posted on 2018-04-17 11:22:06
                            This stock shot higher in the afternoon. Identification is completed
Posted on 2018-04-17 11:40:40
                            I smiled when I saw the first sentence
Posted on 2018-04-17 14:01:56
                            ! Np0n0opmp0pnwn000
Posted on 2018-04-17 14:02:04
                            Nxnwmpm0pnxnpmwnwowmpwpmwn0tw0mwdmx0p0dwp
Posted on 2018-04-17 14:48:44
Posted on 2018-04-17 15:15:29
                            Do not mention the military, and 901 have fallen out.
Posted on 2018-04-17 17:08:02
                            People who write articles do not buy stocks, and they say that there should be significant opportunities for losing money.
Posted on 2018-04-17 17:59:10
                            Never against the market
Posted on 2018-04-17 18:53:12
                            How long has this been? Last year's 17
Posted on 2018-04-17 19:00:09
                            Not just criticism will scare enough confident people
Posted on 2018-04-17 19:20:35
                            When a stock hits a new high, it must have significant meaning
Posted on 2018-04-17 19:42:07
                            Always picky people
Posted on 2018-04-17 19:42:53
                            First, a positive attitude; Second, the mentality of learning; Third, the mentality of giving
Posted on 2018-04-17 19:57:29
                            But old sayings always make sense
Posted on 2018-04-17 20:06:25
                            People are people
Posted on 2018-04-17 20:13:28
                            In this critical moment of the rise and fall
Posted on 2018-04-17 21:06:01
                            Buy in batches once sold
Posted on 2018-04-17 21:22:26
                            There is a request for talent to find friends
Posted on 2018-04-17 21:40:12
                            We should be able to clearly understand our internal state
Posted on 2018-04-17 22:46:05
                            High-end manufacturing, domestic alternative transmission leader 002434. Military quality stocks. stay tuned! "Homemade alternative" is very important!
Posted on 2018-04-17 22:47:51
                            Inspiratory nervous left fist
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Source: China Securities News Editor: Oriental Wealth

Yesterday, the stocks in the military industry sector rose or fell. Among them, Yonggui Electric Appliances, Zhongbing Hongjian, and Zhongxin Haizhi stocks rose significantly. It is worth noting that the military sector, which has been underperforming for a long time in the past, has risen more than 20% since it rebounded from the broader market in mid-February this year, ranking among the top gainers.

In this regard, market participants said that fundamentals and news surface resonance, overlapping market risk appetite and valuation systems are switching: the new unicorns in the new economy, high-tech areas began to value revaluation, with representatives in the military sector Sexual fighter jets, helicopters, armored vehicles, and other companies have high barriers, high technology, and high monopoly characteristics, and their values ​​have begun to be recognized by the market. Three factors caused the recent rise in the military sector.

Disadvantage Dissipation

In the past two years, in addition to the high valuation factors, the fundamental deterioration has been caused by the following: First, the delay in orders for military products brought about by military reform; Second, the stagnation of military asset securitization in 2017, resulting in a difficult trend in the military sector during the period. Quote: Shenwan’s defense industry index fell by 19% in 2016, ranking fifth in the 28 SWFs in the industry; SWD’s defense industry index fell by 17% in 2017, ranking the penultimate sector in 28 SWS. four.

Some brokerages believe that the fundamentals of the industry have reached a freezing point in 2017, and gradual improvement in the future is a high probability event. On the one hand, the phased impact of military reform gradually weakens, and military orders growth will re-accelerate. Positive phenomena have recently emerged. For example, the entire aircraft manufacturer Shenqi Shenfei’s 2017 earnings of 706 million yuan significantly exceeded market expectations, and information equipment suppliers Hager Communications Military orders continued to land. Looking at the expansion of military weapons and equipment procurement practices and the restructuring system, the order growth of military-industrial enterprises in the next three years will be sustained. It is expected that military orders will increase significantly in 2018, especially in areas where new models are released.

On the other hand, staged stagnation of asset securitization does not mean stoppage. After AVIC Shenfei completed its assets reorganization and listing, it was evaluated on the SASAC website as "It is aviation industry that deepens civil-military integration, mixed economic ownership reform, and core military asset securitization. "An active exploration" and passing a positive affirmative attitude, the asset securitization of military assets is still the trend of the industry.

It can be seen that since 2017, major military-industrial groups have restructured one by one, and all state-owned enterprises have been transformed into wholly state-owned companies. The name of the company has changed from “XX Group Company” to “XX Group Co., Ltd.” and the ownership and decision-making power of the company after restructuring Separation of management rights, more clearly defined powers and responsibilities, this may be to pave the way for subsequent mixed changes and other actions.

Long-term investment opportunities

Because of the special labels of the military industry—“high valuation”, “low growth performance and poor stability”, “large volatility” and “subject concept”, some investors chose to evade it. However, on the other hand, the stocks such as AVIC Aircraft, AVIC Electromechanical, and Zhongzhi Co., Ltd. have rebounded from the bottom since the rebound in volume and price, and there has been no sign of peaking. The conflict between cognition and phenomena makes investors confused about the configuration of the military sector.

Shen Wanhongyuan analyst pointed out that the mid- and long-term basic aspects of the military sector are good, and the short-term sentiment catalysed a rebound. In the future, it is expected that the leading stocks will drive out the medium and long-term market. In the medium and long term, with the changes in the international situation and the stabilization of domestic policies, strengthening the strong army is an important component of the concept of a strong country. With the gradual advancement of the strong military policy, the certainty and urgency of the new target of strengthening the military are strengthened. Procurement cycle, model release, order confirmation and policy intensive release catalyze many favorable factors. Military industry has long-term investment opportunities.

Optimistic about investment opportunities in military aircrafts, tanks, infantry fighting vehicles, and helicopters. It is recommended that there be a margin of safety, with emphasis on recommending both growth and valuation, or growth to identify low or scarce varieties.

Military Theme Fund

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Fund codeFund abbreviationNear-month earningsFeesoperating
001266SDIC UBS Lucky Mix13.29%1.50% 0.15%buy Open an account to buy
002251China Military Security Mix11.42%1.50% 0.15%buy Open an account to buy
001679Qianhai Open Source China Scarcity Asset Mix A11.13%1.50% 0.15%buy Open an account to buy
000800Chinese Business Future Blend8.46%1.50% 0.15%buy Open an account to buy
002983Long letter Defence Military Quantitative Mix7.59%1.50% 0.15%buy Open an account to buy
Source: Oriental Wealth Choice Data, Galaxy Securities, Deadline: 2018-04-16