At the end of last year, the market had a certain degree of high expectations for the performance of the military industry, and higher expectations meant that expectations were more likely to fail.

In addition, investors are excessively worried about the possible negative effects of the industry, such as increasing holdings, reducing holdings and equity incentives.

And began to worry about the achievement of 20021annual report and the sustainable growth in the first quarter of 2022.

This has shaken everyone's confidence in the military industry, and the market shows a lack of confidence; From the cost point of view, the recent surge in raw materials, especially crude oil, natural gas and "devil nickel", has caused the market to worry about inflation. It is difficult for the military industry to be immune to it, and it is also suffering from the price increase in the upstream. The pressure on the cost side has swallowed up the profits of the industry and led to the recent decline of the military industry.

However, the military industry cannot be equated with cyclical industries.

Military products have both price rigidity and profit rigidity.