What are the concept stocks for military construction? List of military construction concept stocks

Fengfan Shares

Fengfan Shares: The designated production unit of military starting lead-acid batteries

The company is the designated production unit of military starting lead-acid batteries Unit, over the years the company has introduced a number of battery-specific production lines and testing equipment, with an annual production capacity of 3.5 million KVAh. The company fully adopts the advanced technical standards of the United States, Germany and its famous automobile manufacturers, and its product performance reaches the current international technical level. In 2002, it successfully introduced and put into production a complete production line of new plate batteries, and launched the green and environmentally friendly "Sail/Beyond" series of fully maintenance-free batteries. With its superior performance, it fully supports the use of today's high-power vehicles. Sail battery has been approved by the "Audi A6", "Passat B5", "Santana" and other station wagons, and "Steyr" and other heavy-duty vehicles. It has been matched with more than 30 brands and is an ideal power source for various vehicles at home and abroad. The "Fengfan" trademark has been rated as "China's Well-known Trademark" by the State Administration for Industry and Commerce for many times and is an excellent battery brand in the Chinese nation.

Aerospace Morning Light

Aerospace Morning Light: Addition and subtraction to promote growth, pay attention to the reform of military state-owned enterprises

Aerospace Morning Light 600501

Research institution: Haitong Securities analysts: Xu Zhiguo, Long Hua Writing date: 2015-07-31

Investment points:

Aerospace Science and Industry Group equipment manufacturing listing platform. The company is involved in five major businesses: special vehicles, flexible pipe fittings, pressure vessels, art imaging, and construction machinery. In 2014, pressure vessel products were significantly reduced year-on-year due to the impact of ordering and product production cycles. Construction machinery revenue continued to decline due to the downturn in the coal industry. Automotive products saw a significant decline in revenue due to the company's closure and liquidation. Art imaging products were affected by project progress and revenue recognition was slightly decline. Special-purpose vehicle products benefited from good orders for sanitation vehicles and military fuel trucks, with significant year-on-year revenue growth; flexible pipe fittings products continued to maintain the dominant position among domestic pipe fittings products, with steady revenue growth.

Actively clean up inefficient and ineffective assets and optimize the company's resource allocation through subtraction. The company actively promotes the cleanup of inefficient and ineffective assets. In 2014, the cleanup and rectification work of M&G Tianyun and M&G Shuishan was basically completed. M&G Tianyun reduced its losses by RMB 8.06 million and M&G Shuishan turned a loss from a loss of RMB 18.82 million in 2013 to a profit. In 2015, the company will further liquidate its assets such as Mitsui Miike, M&G Kaiyuan, M&G Liyuanda, etc., and withdraw from the field of construction machinery. We believe that cleaning up inefficient and ineffective assets through subtraction can, on the one hand, reduce losses and improve performance, and on the other hand, it can help improve management efficiency and integrate resources to concentrate on developing advantageous industries.

The private placement is completed, and we will make additions to develop the company's advantageous industries. In July 2015, the company completed a fixed increase of 960 million yuan and will vigorously develop oil storage and transportation (mainly military products) and LNG transport vehicle projects, a new integrated urban garbage collection and transportation environmental protection vehicle project with an annual output of 3,500 units, aerospace special pressure vessels and Core projects such as heavy chemical equipment projects. The industries in which these projects are located have large market space and high growth rates; the company has profound technological and resource advantages, and the project economic benefits are good, and will become the company's core business and key profit growth point in the future.

The short-term stock price is lower than the fixed increase price, so pay attention to related opportunities. According to the company's private placement plan announced in July 2015, 32 million shares were allotted at a price of 30 yuan/share, of which 14.4 million shares were subscribed by Kegong Group and Kegong Group Asset Management Company, locked for 3 years, and institutional investors subscribed 17.6 million shares, locked for one year. At present, the company's stock price is still lower than the issue price, and there is a certain mismatch. It is recommended to pay attention.

The company's parent company has a relatively high proportion of external assets and has strong expectations for asset injection. The company's second largest shareholder, Chenguang Group, is a wholly-owned subsidiary of the Fourth Institute of Aerospace Science and Industry. In 2012, the Fourth Institute transferred 23.98% of the company's shares it held to the Aerospace Science and Industry Group. At present, the company is still the only listed company under the Fourth Academy. We believe that in the context of the continuous advancement of the reform of military state-owned enterprises and the restructuring of public institutions, the company, as a listed company jointly controlled by Science and Industry Group and the Fourth Academy, has certain expectations for asset integration.

Profit forecast and investment advice.

The 2015-17 EPS is expected to be 0.32, 0.43, and 0.53 yuan respectively. With reference to the average PE valuation level of listed companies in the aerospace industry in 2015, the company is given a PE of 110 times in 2015 and a six-month target price of 35.2 yuan. It is covered for the first time and given " Buy” rating.