CITIC Construction Investment: The military sector is at a critical point in the diffusion of local prosperity to comprehensive prosperity_ Securities Times Network

Securities Times e company news, China Securities believes that since the beginning of 2022, the China Securities Military Industry Index has fallen by nearly 20%, the sector valuation has been fully digested, and the high cost performance is more prominent. At present, the overall PE of the military sector is 58.69 times, which is at a historical low. Judging from the core key companies tracked, the current PE of the military sector is 34.6 times. At present, the military sector is at a critical point where the local prosperity is spreading to the overall prosperity, and the inflection point of accelerating the performance of mid-stream and downstream companies is expected to come. The current valuation level of the sector is comparable to the lowest valuation in 2021, and it has a higher investment cost performance. It is recommended to firmly increase the allocation. Proportion, the plate is expected to regain its upward trend after going through the final shock bottoming stage.