AVIC Shen Fei (600760): China’s first naval and air force aviation construction backbone company

AVIC Shen Fei (600760): China’s first naval and air force aviation construction backbone company

As a conventional heavy fighter R & D company, the company directly benefited from the advanced 深圳桑拿按摩网 construction company of the navy and air force. It was a fighter manufacturer in the early days of New China.

From the J-5 series of the first generation fighter to the J-8 series of the second generation, and from the J-11B, J-15, and J-16 series of the third generation to the J-31 of the fourth generation, the company has been the Chinese Air Force.And Navy Aviation provide advanced fighter products.

The company will continue to benefit from the modernization of naval and air forces.

The J-16 multi-purpose fighter is in great demand and has a strong replacement space for the J-16, in addition to the outdated JH-7 series and the Qiang-5 series, and the Su-30MKK, which was transferred around 2000 and is nearing its life limit.There are also some J-7, J-8II in active service of the Air Force and Naval Air Force.

After 杭州桑拿网 refitting the J-16, these units redeployed a variety of operational forms, such as air interception, ground-to-sea attack, and anti-radiation, which were previously deployed as a single interceptor or ground attack mission.

It is estimated that the total market space of the J-16 is close to 200 billion yuan.

The F-15 carrier-based aircraft and the F-31 stealth fighter benefit from the development of naval aircraft carrier-based aviation. The replacement of the F-15 carrier-based aircraft in our army is similar to the US F / A-18E / F / G series.With the development of the military aircraft carrier fleet, the total market space is close to 220 billion yuan.

At present, the annual carrier and various related combat equipment are still in their infancy, and the growth of carrier-based aircraft can provide the company with considerable performance growth.

The naval aviation of the world’s major powers is in the midst of replacements of the third and fourth generations. The demand for the medium-sized four-generation stealth fighters is huge.

The total space of the J-31 market is about 180 billion yuan.

Investment suggestion AVIC Shen Fei, as an important domestic fighter manufacturer, considers the increase in company performance brought by the demand for fighter jets in the first army-wide remodeling, as well as the reform of military pricing mechanism and the reform of institutions and other policies.The price-earnings ratio is compared with military general assembly enterprises, considering the company’s growth and scarcity.

Taking PE as 40-55 times, calculated according to the estimated EPS in 2021, the corresponding two-year reasonable estimate is 36.

4-45.

5 yuan, an increase of 18.

6% -48.

3%, maintain BUY rating.

Risks suggest that the construction of the Air Force and the Navy may be less than expected, and the progress of the reform of military industry central enterprises may be less than expected. The above factors may cause the company’s performance to be less than expected.