On Thursday, September 9, military stocks rose rapidly in late trading, and the plate turned red. As of press time, Blue Shield shares directly 20cm limit, AVIC West Airlines straight up more than 9%, China Power, Morninglight Airlines, Guorui Technology, AVIC heavy aircraft and so on quickly followed.
Since May this year, the military industrial plate has continued to rise, and the plate as a whole has risen by more than 30%, which is full of prosperity.
National defense and military industry is a strategic industry for building a country through science and technology and a military power, and it has entered a period of continuous exchange in a high-profile manner. Great changes not seen in the world in a century have accelerated the evolution. As a pillar industry of building a country through science and technology and a military power, the national defense industry is the highest position of all scientific and technological wars, and its strategic position is prominent.
As early as the 14th five-year Plan, it was proposed to comprehensively strengthen military training and preparation for war, improve the strategic ability to safeguard national sovereignty, security, and development interests, achieve the goal of building the army for 100 years by 2027, and basically realize the modernization of national defense and the army by 2035. We will build the people's army into a world-class army by the middle of this century.
"to take history as a mirror and create the future, we must strengthen the modernization of national defense and the armed forces." In the context of steady growth in military spending and strengthening the modernization of national defense and the armed forces, it is expected that the demand side of the industry will remain high.
Benefiting from the increase in demand for military equipment, the 2021H1 military industry plate as a whole realized operating income of 242.38 billion yuan (+ 33.0%), operating profit of 24.856 billion yuan (+ 65.6%), net profit of 20.608 billion (+ 67.5%), and non-return net profit of 18.202 billion yuan (+ 77.24%).
Looking forward to the second half of 2021, the delivery pace of the whole military industrial chain will be accelerated, but the urgency of preparing for war has not been fully recognized by the market, the current demand for equipment is very strong, and the military industrial chain should consider the issue of supply more.
Guohai Securities said that the 14th five-year Plan period is a critical period to achieve the "centenary goal of the founding of the army" in 2027, the military industry has entered a period of accelerated prosperity, industry production capacity is expanding, and the fundamentals of many high-quality segments will continue to improve; the benefits of industry reforms such as equity incentives are also expected to gradually emerge. Be optimistic about the market performance of the military industry and give the industry a recommended rating.