中信证券研报CITICS_Defense Sector Commentary_State-owned assets stepped up investment.pdfVIP

This is an abridged translation of the Chinese-language report State-owned assets stepped up investment Defense Sector Commentary ｜24 Feb 2021 CITICS Research Core views On Feb 23, the State-owned Assets Supervision and Administration Commission (SASAC) stated that it would focus on functions such as strategic security, industry guidance, national economy and people’s livelihood, and public services, speed up the optimization and structural adjustment of state-owned capital and consider reforms in four areas including increasing investment in the defense and military FU Chenshuo Chief Defense industry, making up for the weak links along the supply chain, Analyst promoting the integration and coordination of innovative resources, S1010520080005 and solving the problems of repeated construction among state -owned enterprise (SOEs). We believe that the reforms will support the fundamentals of the defense sector and drive the accelerated integration of related assets. We suggest keeping tabs on segments with a visible turning point and companies benefiting from the reforms. ▍The SASAC intends to focus on strategic security, and the defense CHEN Zhuo sector will become the focus area of reform. Defense Analyst The Secretary-General of the SASAC, Peng Huagang, stated in the press S1010521010004