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中船系热度攀升,军工ETF全线飘红

The popularity of China Shipbuilding is rising, and military ETFs are flourishing across the board

Gelonghui Finance ·  May 17, 2023 04:27

The military sector rose strongly today. Among them, China Shipbuilding continued its recent gains. Among A-shares, Tianhai Defense rose 10%, China Shipbuilding Defense rose and stopped, China Dynamics rose nearly 8%, and China Heavy Industries and Guorui Technology rose more than 5%.

In terms of ETFs, Huabao Fund's defense and military ETF rose 2.8%, Everbright military ETF leader rose 2.26%, military ETF Yi Fanda rose 2.17%, and Cathay Pacific Fund military ETF, Wells Fargo Fund military ETF, and Penghua Fund defense ETF followed suit.

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Currently, there are 6 military-related ETF products on the market. Among them, the China-Thailand Fund military ETF is the largest. The latest data is 10.418 billion yuan. The target of tracking is the China Securities Military Industry Index.

Since this year, the military industry's growth has been weak, but capital has continued to be distributed through ETFs. As of May 12, the total share of the six military ETFs had increased by 4.417 billion shares.

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The China Securities Military Industry Index selects securities of listed companies held by the top ten military industry groups and whose main business is related to the military industry from the Shanghai and Shenzhen markets, and securities of other listed companies whose main business is representative of the military industry as index samples to reflect the overall performance of military industry companies.

Currently, the top ten weighted stocks in the China Securities Military Industry Index include Aviation Dynamics, China Heavy Industries, China Shipbuilding, and AVIC Shen Fei, which cover segments such as aerospace and defense, machinery manufacturing, and electronics. The total weight of the top ten heavy-duty stocks is 38.18%.

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Currently, the military industry can be divided into three major industrial chains: the satellite navigation technology industry chain, the naval ship industry chain, and the military aircraft industry chain.

On the one hand, according to CCTV military, China successfully launched the 56th Beidou navigation satellite using the Long March 3B carrier rocket at the Xichang Satellite Launch Center today.

On May 10, the Long March 7 Yaoqi carrier rocket successfully launched the Tianzhou-6 cargo spacecraft at the Wenchang Space Launch Site in China. Subsequently, the Tianzhou-6 cargo spacecraft accurately entered orbit, and successfully carried out an autonomous rapid rendezvous and docking with the space station assembly operating in orbit on the 11th.

Anxin Securities pointed out that at present, China attaches great importance to construction work in the space sector, space launch missions are becoming more and more full, and it is expected that the prosperity of related industry chains will continue to rise.

Also, the shipbuilding industry's attention has continued to increase recently. The agency expects that supply constraints in the shipping market will be difficult to ease this year and next two years, and the prices of new ships will continue to rise.

Specifically, the shipbuilding sector is currently in a period of high order growth and performance fulfillment. Statistics from the Ministry of Industry and Information Technology show that the country received 15.18 million DWT orders for new ships in the first quarter of this year, an increase of 53% over the previous year. The number of orders received in March was 5.93 million DWT, an increase of 28.1% over the previous month. At the end of March, orders for handheld ships amounted to 11.92 million DWT, an increase of 14.8% over the previous year.

The current order explosion cycle began in 2021. The number of new ship orders worldwide increased dramatically from 1,058 ships of 75 million DWT in 2020 to 1,765 ships in '21 with 132 million DWT, setting the second highest record in the past 10 years. Currently, ship positions are generally scheduled until 2025-2026.

China Shipbuilding recently stated that its products have been exported to countries along the Belt and Road, such as Singapore, Egypt, Pakistan, and Vietnam. The company's on-hand orders are full. Currently, the delivery period for handheld shipbuilding orders is as far back as 2027.

According to the CITIC Construction Investment Securities Research Report, the military industry is currently in the triple bottom range of sector valuation, performance growth rate, and capital allocation. It has significant investment value. With a new round of upward boom and production capacity expansion, the industry is expected to return to the upward channel. It is expected that the sector will experience an inflection point in the second quarter.

According to Tianfeng Securities Research Report, based on data from the quarterly report, the military sector as a whole continues to be in a period of high boom and expansion. The sector as a whole has shown steady medium to rapid growth, and structural differentiation is obvious.

The Galaxy Securities Research Report said that the military industry's earnings season has taken hold, and the sector is expected to experience marginal improvement.

The translation is provided by third-party software.


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