Changes in the survival status of enterprises in the upper and middle reaches: from the last few years to the present, orders are full, supply is guaranteed, and production tasks are completed with good quality and quantity.
The current industry pattern of middle and upstream enterprises: they are basically oligopolistic enterprises, with only one and two copies in the market. Industry barriers are high and there is a moat, so it is difficult for new enterprises to enter the market.
Second, behind the high growth of middle and upstream performance is the change of business model.
Performance inflection point: the military industrial chain has changed from a large amount of R&D investment and small batch production for decades to mass production.
Performance: increase in profit = increase in income * increase in profit rate.
1. Revenue: From the semi-annual report and the third quarterly report, it can be seen that the high growth of contractual liabilities and prepayments can infer the high prosperity of the military industry, which will last at least 100 year from the tenth five-year plan to 2027, and the high growth rate of performance in the next few years has strong certainty.
2. Profit rate: The profit rate of a single product is equal to the price minus the cost.
Cost: The main cost in the military field is R&D investment, and R&D is sunk cost and fixed cost. Under the condition of fixed R&D investment, the cost of small batch production and large batch production is very different. When the total cost is basically fixed, the quantity will be greatly increased and the cost of single product will be reduced. Therefore, mass production has a poor impact on profit margins, and heavy volume will greatly reduce profit margins.