Drones have gained popularity among the companies and civilians over the years. The advantages of drones, like being compact and fast, avoidance of land traffic, etc., have made their use popular in many applications. Over the years, the usage of drones has penetrated into several applications in the commercial sector, such as aerial photography, express shipping and delivery, gathering information or supplying essentials for disaster management, geographical mapping of inaccessible terrain and locations, building safety inspections, precision crop monitoring, unmanned cargo transport, law enforcement and border control surveillance, storm tracking, and forecasting hurricanes and tornadoes. Logistics companies are about to scale up their businesses with drone delivery services after obtaining the regulatory certifications. For instance, in October 2019, United Parcel Service (UPS) subsidiary, UPS Flight Forward, won federal approval to expand its drone delivery operations, allowing the company to use multiple aircraft in multiple locations to make revenue-generating deliveries over longer distances. In addition, many product delivery and courier service giants, like Amazon, Domino’s, Zomato, and DHL, are implementing the idea of delivery by drones.

Several systems installed in the aircraft like display systems, content, and software for improving the passenger experience and connectivity systems like Wi-Fi routers, will allow the passengers to be stay connected to online platforms. These systems are currently playing an important role in the selection of airlines by the passengers and are playing a major role in the digitization of the aircraft. With FAA permitting the use of electronic devices on the aircraft from gate to gate, inflight entertainment service providers are focusing more on inflight entertainment through the personal electronic devices (PEDs). Inflight live streaming of content has been introduced by some airlines, and currently, other airlines are tr ying to incorporate these into their offerings. Also, the provision of in-seat power has seen an increase in the PED usage, which became the main reason for the growth of Bring Your Own Device initiative. In this market, the operators (IFEC providers like Panasonic) can provide their services in wholesale, retail (revenue sharing), or a third model.

军工行业2019 年业绩回顾：2019 年军工行业（SW）实现营业收入3754 亿元，同比增长29%，增速SW 行业排名第3。实现归母净利润112 亿元，同比增长120%，增速SW 行业排名第2。

国内疫情爆发对于我国航空需求带来严重打击，航司纷纷大量削减航班， 但固定成本刚性，一季度均录得亏损。不过航空业悲观预期充分，三大航 （国航、东航、南航）估值仅为约 1.0-1.1xPB（LF），继续下行风险较小。 并且国内疫情逐步缓解，各地逐步降低防疫等级，有助于市场重拾对航空 板块信心，政府扶持政策以及国际油价大跌将边际利好航司业绩。等待疫 情解除后，航空需求恢复，明年航司业绩或享有较大弹性。推荐东方航空、 中国国航、春秋航空、吉祥航空。

2019 年，军工行业122 家上市公司实现归母净利润140.86 亿元，同比增长8.93%。在剔除商誉减值个股后，业绩为261.61 亿元，同比大幅增长34.19%。全年实现毛利率为17.74%，ROE 为2.58%，均有所提升。航空板块营收和业绩贡献均为六个子板块中最大。2020Q1 实现归母净利润56.04 亿元，同比大幅增长45.23%。由于军品任务的特殊性，我们认为军工核心资产全年仍将稳定增长。