Event 1:

According to the China manned Space Engineering Office, the launch of the long March II F T2 rocket from the Tiangong II space laboratory and the long March II F remote 11 rocket launching the Shenzhou 11 manned spacecraft have completed all the development work before leaving the factory in accordance with the process, and have safely arrived at the launch site of the China Jiuquan Satellite launch Center to carry out final assembly and testing of the launch site. Among them, Tiangong-2 is scheduled to be launched in mid-September, and then the Shenzhou-11 manned spacecraft will be launched in mid-October and rendezvous and docking with Space-2. After that, the astronauts will enter Tiangong-2 to carry out work, and then return by spaceship when the work is finished.

Main points of investment:

Tiangong-2 and Shenzhou-11 flew together, taking a key step in the three-step strategy of manned spaceflight: Tiangong-2 will be launched in mid-September, followed by the launch of Shenzhou-11 manned spacecraft in mid-October and rendezvous and docking with Space 2. Among them, the main task of Tiangong-2 is to verify the key technologies for the construction and operation of the space station, such as cargo transportation and propellant replenishment in orbit, as well as the medium-term stay of astronauts, while loading 14 space application loads, such as space cold atomic clock and space-to-ground quantum key distribution test. Shenzhou-11 will mainly undertake the two core tasks of astronaut transportation and technical verification of the space station, and will form a combination with Tiangong-2 to complete China's longest 30-day manned flight to date. Tiangong-2 has built China's first real space laboratory, thus laying the foundation for the construction of a more complex space station and playing an important role in the three-step strategy of China's manned spaceflight. to promote the space project into a period of rapid development. To develop aerospace, power comes first: manned lunar landing and deep space exploration of various super-large payloads will become the focus and direction of China's space development in the first 50 years of the 21st century, and heavy carrier rockets will become the key to achieve the above goals. the power system determines the rocket carrying capacity and ultimately determines the territory of human space activities, so the power system is the foundation and core of space development. The power system is one of the important components of the launch vehicle. The research and development funds of the foreign power system account for 1% of the total research and development funds of the launch vehicle.

Liquid oxygen kerosene power technology is favored, opening up the company's long-term growth space: according to the official website of the Aerospace Science and Technology Group, the joint test of the 500-ton liquid oxygen kerosene engine of the sixth Aerospace Institute was successful recently. this joint test is an important symbol of the sustainable development of China's aerospace liquid power system. 500 tons of thrust means that it can meet the requirements of manned landing on the moon, and will promote China's aerospace main power technology to reach the world's advanced level. During the 13th five-year Plan period, China will promote the construction of major aerospace projects from many aspects, such as manned spaceships, space stations, lunar and Mars exploration, and space science, and the combined power of space and space is expected to open up the era of space tourism and open up the company's long-term growth space.

The aerospace hydrodynamic national team is the strongest, and the assets injected into the space are huge: aerospace power is the only listed platform of the sixth Aerospace Academy. As the strongest "aerospace hydrodynamic national team," the sixth Academy has a net profit of 1.01 billion in 2015 and aims to achieve revenue of 34 billion yuan and profit of 1.75 billion yuan during the 13th five-year Plan period. As many other aerospace institutes are mainly research institutes, securitization is difficult, and the main assets and profits of the six institutes where aerospace power is located are all in the factory, and the securitization rate of the 13th five-year Plan is expected to far exceed 45%, so there is a huge space for integration and a strong urgency for integration. Based on the asset securitization rate of 70% Mel 80%, we estimate that during the 13th five-year Plan period, the sixth Aerospace Academy had 12-1.4 billion profits injected into the company, with a target market capitalization of 60 billion.

Investment advice: we expect the company's net profit from 2016 to 2018 to be 5910, 6360 / 67.6 million yuan, EPS 0.09, 0.10 and 0.11, respectively, and the current price corresponding to PE is 282, 262, 246 times, maintaining the "buy" rating, with a target price of 34.49 yuan.

Risk tips: the new liquid oxygen kerosene fuel advance is lower than expected; the progress of asset integration is lower than expected.