Defense Military: Successful launch of "Asia Pacific 6c" communications satellite, focusing on the subject of defense informatiz

Quotes review: This week's CITIC Defense Index rose -1.21%, underperformed the broader market, ranking 29th in the first-tier plate up and down. In the tertiary industry of the national defense industry, the aviation industry, aerospace industry, weapons and military equipment, and other military industries all experienced declines, which were -0.62%, -0.99%, -3.51%, and -1.38% respectively. China successfully launched the "Asia Pacific 6C" communications satellite: According to the Liberation Army Daily, at 0600 on May 4, China successfully launched the "Asia Pacific 6C" communications satellite at the Xichang Satellite Launch Center with the Long March III B carrier rocket. The satellite enters the scheduled orbit. The "Asia Pacific 6C" communication satellite user is Hong Kong Asia-Pacific Communication Satellite Co., Ltd., which is mainly used for regional television broadcasting, communications, Internet, multimedia and other services. It can provide services for China, Mongolia, the Asia-Pacific region, and the Indochina Peninsula. In addition, according to the relevant information of the National Bureau of Science, Technology and Industry, Fengyun No. 4 Star A was officially put into operation on May 1, and began to provide satellite data and products for more than 2500 users in more than 70 countries and regions. We believe that: First, China’s national defense informatization is still in its infancy, and the whole is in the process of transition. With the promulgation of the “13th Five-Year Plan” for the development of the army building and development of the Central Military Commission, the demand for defense informatization will increase. It is the focus of China’s national defense investment, and the overall development of the national defense informatization sector is positive. The second is that “integration of information systems, informationization of weaponry, weaponization of information equipment, and modernization of information infrastructure” have become the strategic direction of the development of China's national defense industry. Satellite communications, as the foundation and an important part of national defense informatization, will be China’s national defense investment. The focus of the follow-up on the military satellite satellite communication standard is expected to usher in priority to accelerate the development, and the growth of the performance is still expected. We propose to focus on the satellite communications related standards in the defense informatization sector: China Satellite, Guorui Technology, and Sony Electronics.

 

China歼20 entered the age of auto-assembly and used the method of manufacturing automobiles to build the fuselage: According to Sina Military, on May 5th, FC-31 used a series of new technologies in its development and production. First, it used assembly simulation technology, followed by accelerating speed. The third is the large number of new technologies used in aircraft assembly, such as digital inspection, high-efficiency CNC machining, automatic hole making, large-component flexible automated docking, and so on. In this production process, the traditional manual lifting docking is replaced by the robot arm and the large-scale automatic turntable, and the accuracy of manual alignment and assembly is replaced by the automatic high-precision GPS positioning system and the laser tracker. The manual punching assembly is automatically triggered. Instead of the hole machine, manual monitoring accuracy after assembly is replaced by digital detection and advanced data processing software, which can be compared with the original 3D model. This is tantamount to saying that in the method of producing cars, the fifth-generation fighter fuselage is automatically produced. In addition, according to a report by the Global Times, on May 5th, a Helicopter-18 improved helicopter landed on the deck of the first domestic aircraft carrier, and then the helicopter took off. This is the first time the domestic carrier took off and landed the helicopter. We believe that: First, the demand for military aircraft in China is very strong. China's air force equipment is currently in a period of upgrading. There is a large gap between the proportion of third and fourth generation fighters and the United States, and the demand for military aircraft is very strong. Second, with the acceleration of construction progress for China’s first search aircraft carrier and the increased demand for carrier-based aircraft, the fourth generation of medium-sized fighter aircraft is more suitable as China’s next-generation aircraft carrier, and FC-31 is expected to become the next generation in China. Carrier carrier aircraft has brought growth to fighter aircraft manufacturers. Therefore, we recommend focusing on the fighter aircraft manufacturing industry chain: AVIC Shenfei, AVIC Electromechanical, Avago Power, AVIC Electronics.

 

Investment advice: The military sector as a whole fell this week, and the market gradually digested the first-quarter report, showing a positive trend. However, in the long term, the fundamentals of the military sector continued to improve. China's national defense informatization is still in its infancy, and the whole is in the process of transition. Satellite communications, as the foundation and an important part of national defense informatization, is expected to usher in the priority of accelerating development in the future. It is proposed to pay attention to the relevant standards of communications satellites in defense informatization: China Satellite , Guo Rui Technology, Four Electronics. With the upgrading of China's military aircraft and the increasing demand for carrier-based aircraft, it is recommended to pay attention to the fighter aircraft manufacturing industry chain: AVIC Shenfei, AVIC Electromechanical, Avionics, and AVIC. The generalization, serialization and composition of our military equipment have now been fully started. In line with China’s multiple policy stimuli, we continue to recommend three main investment lines in the medium to long term: First, we will benefit from the upgrade of defense weapons and equipment, including aerospace power (aerospace electronics , aerospace electronics), oceangoing navy (China Heavy Industry, China Light & Power Guangtong) and strategic air force (AVIC Aircraft, AVIC Shenfei, Zhongzhi, AVIC). Second, benefited from the policy reforms such as restructuring and mixed reform of the Institute, including Aerospace, Optoelectronics, Optoelectronics, National Core Technology, and Fourtronics. Thirdly, the cadre of civilians with stable endogenous growth and lower valuation includes Tianyin Machinery & Electric, Hangjin Technology, and New Research.

 

Risk Warning: The production schedule of military aircraft is less than expected; equipment installation progress is lower than expected; systemic risk.