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CITIC Construction Investment stated that the three-year reform of state-owned enterprises has entered the final stage. During this period, the reform of state-owned enterprises in the military industry has achieved remarkable results, mainly in the two directions of IPO, asset integration and equity incentives. Taking the existing listed companies bigger and stronger as the core, the overall listing may become the key direction in the future. At present, the military industry sector is at a critical point in the transition of the economic climate. The high cost performance of the sector is more prominent. The national reform of the military industry is expected to be implemented intensively. The valuation of the sector is expected to switch. The first choice is the target of “high prosperity track, high proportion of military products, and fast growth of performance”, and the second choice is the target of “low valuation, large margin change”. (Securities Times)
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