CICC: Continuing the boom in the aerospace industry, it is recommended to focus on three major directions, including the field of new quality
The Zhitong Finance App learned that CICC released a research report saying that looking ahead to 2026, resonance in internal and external demand is expected to help the aerospace industry continue, flexibility in the direction of new quality in the new region is expected to be released, and the development of commercial aerospace and other sectors benefiting from the spillover of special technology is expected to accelerate. The bank proposed focusing on the three major directions of new quality fields, the core target of special trade, and new quality productivity benefiting from the spillover of special technology.
CICC's main views are as follows:
The “15th Five-Year Plan” is superimposed with special trade requirements, and domestic and foreign demand resonates to continue the industry's boom
1) 2026 is the first year of the “15th Five-Year Plan”. Driven by the goal of building an army for 100 years, the process of installing and replacing special equipment continues to advance. The bank believes that the domestic demand-level industry is still expected to maintain its prosperity. 2) According to SIPRI, global defense spending increased 9.4% year-on-year to $2.72 trillion in 2024, and the increasingly complex geographical situation intensified the demand for special equipment. The bank believes that China's global share of special equipment is expected to increase steadily, which will help enhance the industry's growth space and profitability.
The growth of new products in the new domain is accelerating, and demand elasticity is expected to be released one after another
At the end of the 14th Five-Year Plan, China's new equipment was unveiled. The 15th Five-Year Plan proposed “speeding up the integrated development of mechanization, informatization, and intelligent integration” and “promoting large-scale, practical, and systematic development of new combat forces in the new regions.” The bank believes that the development trend of mechanization, informatization and intelligent integration of equipment is clear, new quality equipment in the new domain is expected to become a key area for equipment construction, demand for typical new quality equipment in the new region is expected to be released, and the core links of the supply chain are expected to show good growth.
Technology spillover drives growth in emerging fields, and large aircraft, low-altitude economy, and commercial space have begun a new stage of development
The bank believes that 1) large aircraft: the mass production and delivery capacity of large domestic aircraft is expected to continue to increase in 2026, and localization demand is expected to drive the upgrading of the aviation industry chain; 2) commercial aerospace: the construction of the satellite Internet space segment has entered the normalized networking stage, the industrialization process of application links is expected to accelerate in 2026, and landmark events in commercial rocket technology progress and capital operation are expected to be implemented intensively; 3) the low-altitude economy is expected to continue the high-quality development trend in 2026.
Profit forecasting and valuation
Considering the upward trend in the sector's valuation center, the bank raised the target price for Chinese satellites by 23.8% to 52.2 yuan, a potential increase of 6.6%. It is recommended to focus on the three major directions of the new quality sector, the core target of special trade, and new quality productivity benefiting from the spillover of special technology. We recommend Chujiang New Materials (002171.SZ), Aerospace Electronics (600879.SH), FELIHUA (300395.SZ), AVIC Shen Fei (660760.SH), Guorui Technology (600562.SH), China Satellite (), Zhenlei Technology (DAB), and Fudan Microelectronics (Sichuan). 600118.SH 688270.SH 688385.SH
risk
Demand falls short of expectations; developments in emerging sectors fall short of expectations.