Zhongtai securities analyst Li Cong commented that the military china daily is about to be released, and the plate market is expected to continue. As the disclosure period of the interim report is approaching, several companies have issued performance forecasts for the half year of 2020, and the overall fundamentals of the military industry are showing an improvement trend.
In terms of medium and long-term logic, China Thailand Securities believes that the growth of military expenditure will remain stable in 2020, and the assembly of the new generation of main combat equipment is also expected to accelerate. Although the current downward pressure on the economy is great, the demand for military industry is relatively independent, and the investment value is expected to be highlighted. The market prospect of aviation sector, national defense informatization sector and new material sector will be focused on.
Zhongtai securities suggested to focus on main engine plants: AVIC Shenfei, aerospace rainbow, Hangfa power, Zhongzhi shares;
Informatization: Zhenhua science and technology, aerospace development, aerospace electrical appliances;
New materials: AVIC high tech, Guangwei composite, Beimo hi tech;
Reform: AVIC electronics, AVIC mechatronics, four creation electronics; civil participation in the Army: new leineng, Hongxiang shares, andaville;
The collection of leading companies in the industry: ETF, the leading military industry company.
Source of this article: Yang Bin, editor in charge of CFA_ NF4368