Machinery industry over-competition risk, the policy does not reach the expected risk

Relaxation of access, ready. CAAC Flight Standards Division recently issued three consecutive circular, the private pilot license for the pilot in theory, practice exams, physical examination in three areas to relax the standard.

    We interpret this news as follows: The main purpose of CAAC's relaxation of the standards for private pilot licenses is to reserve the relevant pilots for the arrival of general aviation. The lack of flight personnel is one of the main bottlenecks that restrict the development of general aviation in our country. The relaxation of standards will help to better reserve the flight crew and promote the healthy development of the general aviation industry.

    The relaxation of access standards for private pilots fully demonstrated the proactive attitude of CAAC in promoting General Aviation. Following the promulgation of the General Aviation Flight Approval and Management Regulations on November 18, the Civil Aviation Authority relaxed its access criteria for private pilots in a short period of time, fully demonstrating the CAAC's proactive approach to General Aviation and also to Civil Aviation Authority General Aviation Development has done a "top-level design," so we expect the introduction of general aviation follow-up support policy is expected to exceed market expectations.

    Related training companies will be expected to benefit directly. Intuitively, relevant training companies are expected to benefit from the Civil Aviation Authority to relax private flight license application standards, such as high-tech (002023, buy), KAWASAWA (002253, not rated), etc .; in the long run, Flying license will have a profound impact on the development of the general aviation industry. We are optimistic about the layout of the general aviation industry chain companies, such as high-tech Hite.

    Investment Strategy and Suggestions:

    According to WIND consensus forecast, the price-earnings ratio of the general aviation segment to 2013 and 2014 respectively is 41x and 28x, and the valuation is in a reasonable position. Therefore, we recommend that we focus our attention on individual stocks. Specifically, we recommend Hitech (002023, BUY) Suggest attention Weihai Guangtai (002111, overweight).

    risk warning

    Industry over-competition risk, the policy does not reach the expected risk

    From November 27 to November 30, 2013, the Third Session of the Fourth Member Representative Meeting of China Construction Machinery Association and the 2nd Construction Machinery Development Forum were held in Linyi, Shandong Province. The meeting focused on the theme of "Adapting to the Situation, Upgrading and Upgrading, and Promoting Sustainable Development" to discuss the development path of construction machinery industry with "innovation-driven, quality first, structural optimization and green development". The meeting will listen to the state of macroeconomic and construction machinery industry development situation report, review Association 2013 work summary and 2014 work plan, consider the association's motion, issued 2013 construction machinery credit rating certificate and plaque; and will focus on industry hot spots Hold in-depth discussion of the issue. The first construction machinery network to attend the meeting, and the whole report to the General Assembly.