Xia Qingying, an analyst at Wanlian securities, said that the counter cyclical advantage of the national defense and military industry was highlighted, and the multi-dimensional bright spot enabling industry continued to grow. In the first half of 2020, the fundamentals of the military industry are strong, the financial situation of listed companies is healthy, the turning point of performance has been achieved, the valuation of the sector is relatively underestimated, and it is suggested to seize the allocation opportunity.
Statistics show that as of June 18th this year, a total of 35 military industry stocks have realized net financing purchase, with a total net financing purchase amount of 7 billion 78 million yuan. Among them, the net purchase amount of 21 individual shares financing is more than 100 million yuan. During this period, AVIC aircrafts net purchase amount by financing was the highest, reaching 1.251 billion yuan. Next came China satellite, with a net purchase of 908 million yuan. In addition, the net purchases of aerospace development, argot technology, Leike defense, Beidou Xingtong, Haite hi tech, aerospace rainbow, aerospace power, aerospace electronics, zhongbing Hongjian and other stocks also exceeded 200 million yuan.
With the help of financiers, 21 of the above 35 military stocks have risen to different degrees since the first half of this year, accounting for 60%. Five military stocks, including China satellite, AVIC hi tech, Yaguang technology, Leike defense and aerospace development, all rose by more than 40%.
Compared with the hot consumer stocks and technology stocks in the first half of the year, the performance of military industry stocks is slightly flat. Nevertheless, there are not a few institutions that are optimistic about the trend of military industry in the second half of the year.
Li Lujing, chief analyst of military industry of Tianfeng securities, said in an interview with Securities Daily that he was optimistic about the trend of military industry stocks in the second half of the year, and would be a plate with a definite climb on the right side of the boom during the 14th Five Year Plan period. Last years annual report and the data of the first quarter of this year confirm the fact that the boom of the military industry is on the right.
Shi Kang, an analyst at Societe Generale Securities, also believes that the military industry sector has gradually entered the stage of value growth, with most of the military industry enterprises revenue and profits recovering from the second quarter. Compared with other manufacturing industries horizontally, the military industry has stronger planning, higher military demand certainty of downstream customers, relatively closed industrial chain, more rigorous organization of scientific research and production, and relatively small impact by economic environment. Therefore, the annual performance of the military industry is highly determined, which is particularly valuable at present.
Compared with other industries horizontally, Li Lujing said, first of all, the military industry has a relatively stable growth prospect, and this counter cyclical and certainty is an advantage. Secondly, the proportion of institutional positions in the military industry sector is at the bottom of history. At present, it is basically about 0.7%, significantly lower than the standard proportion of about 1.5%, which is at the low level of chip allocation. Third, the dynamic P / E ratio line of the military industry sector in the past decade is also in the lower 30% undervalued area.
Source: responsible editor of Securities Daily: Yang Bin_ NF4368