The Military Composite Materials Such As Guang Wei Complex, China Aviation Hi Tech And Philippe Are Listed In Military Stocks With Potential Growth Potential.

In the past ten years, China's defense expenditure accounts for an average of 1.2% of GDP.

In the United States, Russia and India, its defense expenditure accounts for about 3%~4% of GDP, indicating that there is still room for improvement in China's military expenditure.

1, in 2018, China's defense expenditure was 1 trillion and 110 billion yuan, up 8.25% over the same period last year, and the growth rate of defense expenditure has picked up for the first time in four years.

2, according to the results of the first three quarters of 2018, three indicators of the operational sector, operating receipts and net profits have picked up.

The increase in pre account receipts indicates that the orders for military products are on the warmer trend, and the performance of the entire industry will continue to be released after these orders are recognized as revenue in the future.

3, in terms of valuation, the price earnings ratio of the national defense industry is about 57 times, and has fallen back to the bottom of the historical period when the last wave of military market started in 2013~2014.

Military composites enter growth stage

At present, most of the listed companies that produce military composite materials are mainly civil servants.

Although the competition is more adequate, it has higher industry barriers and stronger profitability.

Because at present, the number of complex enterprises that meet the requirements in large quantities for the military industry is limited.

And the industry has the characteristics of high technology requirements, high early investment and long downstream.

There is a certain trade barrier to other enterprises who want to enter the field.

And the military compound enterprises have a relatively high gross profit margin. According to statistics, the gross profit margin of the composites enterprises with high proportion of military products is basically above 40%, and the industry has strong profitability.

At present, with the gradual weakening of the influence of the army reform, the accelerated installation of new weapons and equipment and the strengthening of actual combat training, the order of military products will be compensated.

In order to realize the modern military construction, the military has gradually improved the performance requirements of new equipment in weight reduction, impact resistance and stealth. Thus, a series of composite materials such as carbon fiber and silicon carbide fiber have been promoted to enhance the demand in the downstream military enterprises, stimulating the military composite material industry to enter the growth cycle.

Considering the strong profitability of military complex enterprises, it has strong growth advantages and profitability than other military sub sectors.

Personally, it is worth noting that its investment value is worth paying close attention to.

At present, A shares engaged in military composite materials mainly include:

The purchase of Jiangsu Tian bird by Chu Jiang new material was approved by the SFC at the end of last year.

Jiangsu Tian bird is the only enterprise that produces aircraft carbon brake prefabricate in China. It is also the largest manufacturer of carbon carbon composite materials in China.

Its early acquisition of Dingli technology is the only supplier of 30 cubic meters of thermal equipment in China, and has now become the core supplier of aerospace and military customers.

The company expects that 1 net profit attributable to shareholders of Listed Companies in 2018 will range from 400 million to 450 million yuan, with a range of 10.92%~24.78%.