F-20 leads military industry stocks to take off

As the two centuries of the founding of the party and the army are approaching, there will be more catalysts for the defense and military industry, and “a hundred years of change” will inevitably accelerate the modernization of our army. Last weekend, CCTV’s military channel reported that the second unit equipped with the J-20 was officially made public. It was the first group of the Air Force to form, participate in the war, and win the first “Strong Army Pioneer Brigade”. Compared with the J-20 equipped by the “Wang Hai Brigade”, the J-20 equipped by the “Strong Army Pioneer Brigade” has undergone many improvements, especially the engine is replaced with a domestic turbofan-10 engine, which means that the J-20 has been realized. Fully localized.

Affected by this news, the national defense and military industry sector rose heavily in early trading today. The sector index rose for the third consecutive day and hit a new high in nearly three and a half months. Dongtu Technology’s 20% daily limit, Eleda, Bright, and New Research , Anhui Technology, etc., the daily limit may rise by more than 10%. Military ETF funds also rose today, leading the rise.

The F-20 can achieve 100% localization rate, even if it is not easy in the world, except for the F-20, currently only the United States can achieve 100% localization of the fifth-generation fighter, even Russia and France currently Russia lacks high-performance electronic equipment and optical equipment, and needs to import gallium arsenide semiconductor materials from South Korea. Although France can develop Rafale fighters, France does not have the technology to manufacture ejection seats and needs to import ejection seats from the United Kingdom. chair.

Ai Leda focuses on the field of aviation manufacturing, mainly engaged in the production of aircraft structural parts and engine parts. Since the establishment of the company for more than ten years, it has accumulatively participated in the development and production of a variety of models involving more than 3000 aviation parts. On the investor interactive platform, investors have repeatedly asked whether the company’s products are available for the F-20, H-20, and Yun-20 models. Eleda did not respond directly on the grounds that military secrets were involved.

But this does not prevent investors from showing their love for Philharmonic. In 2020, Philharmonic has soared by 271%, and it has risen by more than 30% this year. Today, stimulated by the good news, the intraday straight line pulled up to the 20% daily limit. Beijing Capital Capital increased its holdings of Philharmonic by more than 50% last Friday, and its number of shares hit a four-month high.

Guohai Securities stated that the continuous installation of the J-20 aircraft will further enhance the air force’s comprehensive combat capabilities, and also shows that the national defense construction continues to advance, downstream demand is strong, and the aviation industry chain continues to rise. The 14th Five-Year Plan period is a critical period for achieving the “Hundred Years of Military Struggle” in 2027. The military industry has entered a period of accelerated growth, the industry’s production capacity is expanding, and the fundamentals of many high-quality segments will continue to improve. It is recommended to focus on such fields as missiles, military aircraft and aero-engine industrial chains, new materials for military industry with high upstream prosperity, military electronics, and military information technology.

Capital rallies to reduce chip stocks

Electronic technology stocks continued to strengthen in early trading. The semiconductor sector index hit a record high during the session, the gallium nitride sector index also hit a record high, the chip sector index hit a new high in the past year, and the lithography machine sector index approached a new high this year. The daily limit of Liyuan Information is 20%, and the daily limit of Hanwei Technology, Jingsheng Electromechanical, and Jingchen shares may rise by more than 10%.

As the problem of chip shortages continues to intensify, major domestic and foreign semiconductor manufacturing companies have raised their capital expenditure plans, vigorously expanding production capacity, and increasing prices, shortages, and expansion into “high-frequency vocabulary.” Domestic and foreign companies have raised prices in various aspects of semiconductors, but the contradiction between chip supply and demand is still prominent, which is eventually transmitted to the production links of physical enterprises such as automobiles and mobile phones. The market predicts that this round of the semiconductor industry boom cycle will last at least until the end of 2022.

However, investors should focus on the fact that at present, experts have warned that chip manufacturers may have excessive hunger marketing and large-scale production expansion, and there may be a crisis of chip surplus in the future. And market capital is also constantly flowing out taking advantage of the stock price surge. According to Wind statistics, starting from Qunengdi, the National Integrated Circuit Industry Investment Fund has successively reduced its holdings in high-quality companies such as North China Chuangchuang and Zhaoyi Innovation. Recently, Weir shares and others have also announced information on shareholder reductions. In addition, in just four trading days last week, the net outflow of chips and semiconductor-related ETFs reached nearly 5 billion yuan.

Beijing Capital Securities stated that the global core shortage has allowed the industry and capital markets to re-understand the semiconductor manufacturing process, especially semiconductor foundries and IDM-mode semiconductor manufacturers. Companies with fabs will have greater and greater say in future development, and the higher the differentiation, the better, and the valuation given by the capital market will also become higher and higher. Semiconductor is the core technology. To buy a technology company, you must have technical strength, and be able to continuously launch new products, and new products can be recognized by the market to bring income.

Cross-border “drinking” Zhongxing Fungus Industry Daily Limit

How hot the liquor industry is, companies that grow edible fungi must also acquire liquor assets.

On the evening of June 20, Zhongxing Fungus Industry (002772) announced that in order to promote the development of the company’s dual main businesses and increase new profit growth points, the company plans to acquire Liu Jian and Liu Liangyue’s Shengjiao Wine in Maotai Town, Guizhou, in cash. Industry Co., Ltd. (referred to as “Shengjiao Wine Industry”) 100% equity.

Stimulated by the news, on June 21, Zhongxing Fungus Industry had a bid price limit. As of the noon close, the number of orders exceeded 1.15 million, reported at 9.64 yuan, with a total market value of 3.55 billion yuan.

According to the announcement, Shengjiao Wine Industry is located in the core production area of ​​7.5 square kilometers of Maotai-flavored liquor in Maotai Town, Renhuai City, China. Since its establishment, it has focused on the research and development, production and sales of Maotai-flavored liquor. One of the wine storage companies. The owner of Shengjiao Liquor’s product is the “Shengjiao” series of Maotai-flavored liquor. After years of development, Shengjiao Liquor has achieved a national distribution of sales channels and is one of the main manufacturers of Maotai-flavored liquor in my country.

Zhongxing Fungus Industry is a modern agricultural enterprise specializing in the research and development, factory cultivation and sales of edible fungi. The main products are Flammulina velutipes and Agaricus bisporus fresh products. Judging from the current main business layout, Zhongxing Fungi is determined to “drink” across the border. Zhongxing Fungus is not the first company to be the first Zhongshengjiao Wine Company.

In October last year, *ST Garden City announced that it planned to acquire 100% equity of Shengjiao Winery and raise matching funds by issuing shares and paying cash. Subsequently, the restructuring inquiry letter from the Shanghai Stock Exchange followed one after another. The core question was to explain the reason for the sharp increase in the performance of Shengjiao Wine Industry.

One month later, in November last year, *ST Park City stated that the transaction company and the target party could not reach an agreement on the valuation of the target company and terminated the acquisition of 100% of the shares of Shengjiao Wine Industry.

It is worth mentioning that in the four trading days from June 15th to 18th, the stock price of Zhongxing Fungi Industry rose successively, with a cumulative increase of 12.16% in the interval. A person in the liquor industry believes that cases of cross-border liquor making in the capital market are not uncommon, but there are many losers. There is still some suspense whether the acquisition plan can be successfully completed. The company also reminded investors in the announcement that the equity purchase agreement has not been formally signed, and it is not yet possible to predict the impact on the company’s operating results.

The concept of medical beauty is active again

The concept of medical beauty was active again on the 21st. As of press time, Harbin Sanlian’s daily limit, Langzi shares rose by more than 8%, Jiangsu Wuzhong, Kaineng Health, Lafang Jahwa, etc. rose by more than 6%, Yihua Health, Gold Rabbi , Aimeike, Huaxi Biology, Haohaishengke, etc. rose more than 5%.

On the news, recently, eight departments including the National Health Commission, the Office of Cyberspace Affairs, the Ministry of Public Security, the General Administration of Customs, the Market Supervision Bureau, the Post Office, the Food and Drug Administration, and the Bureau of Traditional Chinese Medicine jointly issued the “Special Rectification Work Plan for Combating Illegal Medical Beauty Services.” , Decided to jointly carry out related rectification work from June to December 2021. The rectification includes four aspects: (1) Strictly crack down on illegal medical aesthetics-related activities; (2) Strictly standardize medical aesthetics service behavior; (3) Severely crack down on illegal drug manufacturing and sales activities; (4) Severely investigate and punish illegal advertisements and the Internet information.

In this regard, CITIC Securities pointed out that remediation may affect some demand in the short term, but after dynamic rebalancing, market demand will shift to authentic licensed and formal medical aesthetics terminals; medical aesthetics accidents and disputes will decrease, and public trust will increase. It will promote the expansion of demand in the entire market and benefit the entire industry. The rapid expansion of the medical and aesthetic industry and supervision and remediation will help “good money drive out bad money.”

Gree, founded in Zhuhai in 1991, has now become an aircraft carrier in China’s air-conditioning industry. But just a dozen years ago, Gree faced the danger of being sold to the Americans. Thinking of it, it makes people sweat.

In July 2005, the media suddenly exposed the news that “Carrier will acquire Gree Electric.” Although the Zhuhai State-owned Assets Supervision and Administration Commission quickly came forward to refute the rumors, the matter was definitely not groundless. “At that time, an official from the State-owned Assets Supervision and Administration Commission of Zhuhai who was interviewed by the “Chinese Entrepreneur” said: “Almost all companies that can come have come. Who doesn’t want to get Gree.” ”

At that time, Gree Electric’s restructuring was entering a very sensitive stage, and the Zhuhai municipal government was also hesitant about how to choose. Gree’s restructuring work began in 2003. Although Gree Group held 58.66% of Gree Electric’s equity, the restructuring work was still directly managed by the municipal government.

At that time, the Zhuhai Municipal Government had different opinions on how Gree should restructure. The party headed by the Secretary of the Municipal Party Committee at the time advocated introducing a major shareholder for Gree Electric. As long as the major shareholder can ensure that Gree Electric will remain in Zhuhai, it will be fine even if it is bought by foreign capital. The other faction is opposed to the shareholding of Gree Electric. Sold to foreign investors.

The party that agreed to sell Gree to foreign investors used the example of Shenzhen Water Group’s restructuring as a magic weapon. Two years ahead, Shenzhen sold its 45% stake in Shenzhen Water Affairs Group to the French Veolia Water Group at a price of US$400 million, and the restructuring was a success. Many people from the Zhuhai Municipal Party Committee and Municipal Government were very interested in this experience in Shenzhen. If a Fortune 500 company can be introduced to buy Gree, this will be a highlight for the political achievements of the ruling party, and it can also change Zhuhai’s backwardness in attracting foreign investment in the province at that time.

Soon after the news of Gree Electric’s equity transfer came out, a large number of foreign companies flocked to it. Companies that have expressed strong interest in equity transfers include internationally renowned companies such as American Carrier and Japan’s Daikin. Through a period of inspection, the Zhuhai Municipal Government has been more active towards the American Carrier Group, the company founded by the inventor of air-conditioning Willis Carrier, but these details have always been kept secret from Gree’s senior management.

In July 2005, when the Carrier Group launched an investigation before the acquisition of Gree, the Zhuhai Municipal Government revealed the acquisition plan to Gree’s management. The shock and resistance of then chairman Zhu Jianghong and general manager Dong Mingzhu can be imagined. .

In the life and death of Gree Electric, Dong Mingzhu showed the demeanor of an “Iron Lady”. She directed the staff to prevent the investigators of the Carrier Group from entering Gree’s gate, and she immediately went to Guangzhou to find Zhang Dejiang, then Secretary of the Provincial Party Committee, and told Secretary Zhang the pros and cons of the “national brand” of Gree being sold.

In Secretary Zhang’s office, Dong Mingzhu burst into tears: “Although American Carrier is a Fortune 500 company in the world, if we sell them to them, our domestic products are gone! Gree is small, but it has a future!” When it comes to excitement, she even said Slapped the table.

The result of this three-hour battle based on reason is that Secretary Zhang sent a provincial investigation team to investigate the acquisition of Gree Electric.

In fact, 2005 was a year of great strides for Gree Electric. Gree was the only representative of the home appliance industry on the “Top 500 Taxpayers in China” and “Top 500 Taxpayers of China’s Listed Companies” announced by the State Administration of Taxation in the first year. . Compared with the annual production capacity of 20,000 units when the company was founded, it has doubled by 140 times.

Dong Mingzhu is an ambitious woman. She has said in public many times: “We hope Gree can become a global brand. South Korea can cultivate a global brand like Samsung. Doesn’t China have the ambition to cultivate its own brand?” Under her leadership, Gree Electric took the lead in successfully developing With the “centrifuge” technology, it has completely independent intellectual property rights.

Dong Mingzhu is very supportive of the corporate restructuring, but she is not willing to sell Gree to Americans one hundred and twenty. Although Carrier has strong capital and leading technology, as well as a global sales network, she believes that this has no meaning to the improvement of Gree’s competitiveness. As she said in front of the secretary of the provincial party committee: “Gree has no shortage of funds, technology, and global sales network. Gree does not have a penny loan in the bank, and has good financing and technical capabilities. Gree’s global sales network is not inferior to that of Americans.”

At that time, Gree was about to reach the top of the home appliance industry. If it was acquired by the Americans, what would be waiting for Gree, Dong Mingzhu knew very well. Wasn’t Kelon also “the world’s best SME”? What happened after being acquired?

Dong Mingzhu is very clear that if Carrier acquires Gree, it will reverse the decline of foreign air-conditioning manufacturers in the Chinese market and become a strong oligarch in the Chinese air-conditioning market overnight. Once the acquisition is successful, Carrier can OEM production, greatly reduce costs, and deliver its products to every corner of the Chinese market through Gree’s blood vessels.

Regarding the restructuring, Dong Mingzhu’s plan is for Gree Electric to strive for a pilot “full-tradable share reform” and reduce state-owned shares to the public. This is also a key share reform project in Guangdong Province. However, some leaders in Zhuhai at the time were hesitant to “share reform” and insisted on selling Gree.

This is the moment of survival for a national brand. In order to succeed in the acquisition, the Carrier Group made a private promise to Dong Mingzhu: After the acquisition of Gree, she will continue to serve as the general manager, with an annual salary of 80 million yuan. Dong Mingzhu’s answer was eloquent: “I won’t agree with an annual salary of 800 million yuan!”

Everyone, what is the concept of an annual salary of 80 million in 2005? Even today, Dong Mingzhu’s annual salary is not two million, and 80 million is an astronomical figure for her. But Dong Mingzhu was not overthrown by sugar-coated shells, she wanted to turn the tide.

With the support of the main leaders of the province, the Zhuhai governing officials who advocated the introduction of foreign capital were removed, and Carrier’s plan to acquire Gree was aborted. The agreement to transfer equity has become Gree Electric’s choice.

Gree’s secretary of the board of directors said: “Entering the equity division platform, the pricing of state-owned assets is completely market-oriented, and the opportunity for cheap sales is immediately reduced. Gradually reducing state-owned shares through the secondary market can completely avoid the fate of foreign acquisitions.

In September 2006, Dong Mingzhu was appointed as a director of Gree Group, and then took over as chairman in 2012. Gree Electric has completely entered the “Dong Mingzhu era”. In this year, Gree Electric’s sales exceeded the 100 billion mark, becoming the first company in my country’s home appliance industry to rely on a single product to exceed the 100 billion mark in sales. Her oath of “recreating a Gree in five years” was also fulfilled.

Let’s go back and take a look at the American company that is preparing to acquire Gree!

On November 15, 2011, Midea Electric completed the acquisition of a 51% stake in Carrier’s air-conditioning business in Latin America and took over the air-conditioning business of Carrier in Latin America. Fang Hongbo, Chairman and President of Midea Electric pointed out: Holding the control of Carrier’s Latin American air-conditioning business is one of Midea’s global strategies. After the completion of this merger, Midea’s overseas manufacturing capabilities will be further strengthened.

In the announcement of the acquisition of Carrier, Midea Electric said: “In the long run, the global air-conditioning market will gradually evolve into a duopoly of Gree and Midea.” But Midea also admits that from the perspective of air-conditioning projects, Gree Bi Midea’s internationalization The process is one step faster. In recent years, the proportion of Gree’s own brand exports is much higher than that of Midea, and its influence has basically been established in overseas markets, especially European and American markets.

Gree people will never forget Dong Mingzhu’s generous statement on the board of directors: “The annual salary that Carrier offered me is too tempting, but I can’t accept it. Because the acquisition means Gree’s failure! Carrier is the world today. Fortune 500, but Gree will be tomorrow’s top 500! Give me 20 years, wouldn’t it be better for us to build the Fortune 500 ourselves?”