The Third Expo for High-tech Equipment Achievements of Military and Civilian Integration Development and Forum kicked off in Beijing on September 18. It is learnt that 422 technological achievements of 354 enterprises across China debuted at the expo, including a batch of national important achievements such as BeiDou Navigation Satellite System, China’s Beijing-Shanghai quantum private communication network and Sunway TaihuLight supercomputer. Besides the eight major exhibition pavilions, there’s a pavilion for artificial intelligence (AI), which is a leading technology and favored by various capitals.
The reporter learnt that the expo, which was jointly hosted by office of Central Military and Civilian Integration Development Committee, Equipment Development Department under China’s Ministry of National Defense, State Administration of Science, Technology and Industry for National Defense (SASTIND) and other ministries, is a national-level expo and forum which is the most authoritative, comprehensive and demonstrative in China’s weapon and equipment military-civilian integration field. Analysts thought that launch of the expo and debut of various military-civilian integration products may help military-civilian integration sector attract more attention from the market.
In addition, China attaching increasing importance to the sector pushes up market potential, and the oversold stocks of related companies boosted military-civilian integration sector, too. In April this year, the Ministry of Science and Technology (MOST) and Science and Technology Commission under Ministry of National Defense issued technological military civilian integration development plan for the 13th Five-year Plan period, which was a top-level document for the industry. Industry insiders said that with promotion of military-civilian integration strategy, there will be many reform measures for military-civilian integration field in the future. SASTIND has made instructions for promoting military-civilian integration and will set investment funds for the industry. At the same time, it will move faster in starting construction of new demonstration area for military-civilian integration and is studying instructions for promoting military-civilian integration development of shipping industry.
Under this favorable background, various capitals are making development in the industry. In May, Guochuang funds worth 150 billion yuan were established under guidance of State-owned Assets Supervision and Administration Commission (SASAC), which are mainly invested in military-civilian integration industry such as aerospace, nuclear power and shipping industries. Uroica Precision Information Engineering Co., Ltd. (300099.SZ) disclosed in its semiannual report that its subsidiary Beijing Huhua Yuqi Information Technology Co., Ltd. cooperated with Chuangchun Shikai Technology Industry Co., Ltd. to obtain a military communication project and gained 5 million yuan of operating revenues. Military-civilian integration fields will become one of important growth driver of the company in the future. Wuhan Guide Infrared Co., Ltd. (002414.SZ) made significant breakthrough in environmental protection, individual vision products, smart home and vehicle night vision in the first half of this year. It will spare no efforts in developing infrared industry and promote its technologies leading in military-civilian industry to civilian product market to propel application of infrared thermal imaging technology.
In view of a series of policies recently, research reports of securities companies and hot themes of capital market, there are obvious opportunities to invest in four major fields including BeiDou navigation system, grater airplane, quantum communication and AI.
Among the four above-mentioned sectors, BeiDou navigation will see turning point and attention should be paid to it in the short term. Ran Chengqi, head from China satellite navigation system management office, indicated at the expo that BeiDou-3 satellites will be sent into space in November and two more groups of BeiDou-3 satellites will be launched by the end of this year.
BeiDou navigation sector saw the highest rise of 2.84 percent in September. Hunan Zhongke Electric Co., Ltd. (300035.SZ) (up by 28.65 percent), Infotmic Co., Ltd. (000670.SZ) (up by 25.98 percent), Zhuhai Orbita Aerospace Science & Technology Co., Ltd. (300053.SZ) (up by 19.96 percent), Navtech INC. (300456.SZ) (up by 18.02 percent), Shenzhen Soling Industrial Co., Ltd. (002766.SZ) (up by 16.21 percent), and Chengdu CORPRO Technology Co., Ltd. (300101.SZ) (up by 15.60 percent) all increased by over 15 percent within September.
Translated by Vanessa Chen
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