Group 1: Overall Performance of Central Enterprises - 79 central enterprise-controlled listed companies reported positive performance forecasts for the first half of the year, with 32 companies showing year-on-year net profit growth, 22 companies turning losses into profits, and 25 companies reducing losses [1] - 19 central enterprise-controlled listed companies expect a net profit increase of over 100%, with several companies achieving significant turnaround from losses [1] Group 2: Power Sector Performance - Huayin Power, a subsidiary of China Datang Group, is expected to lead the growth with a projected net profit of 180 million to 220 million yuan, representing a year-on-year increase of up to 44 times due to increased power generation and reduced fuel costs [2] - Major investments in the power grid and ultra-high voltage construction by State Grid and Southern Power Grid are expected to drive growth in related companies, with Guodian Nanzi and Baobian Electric forecasting net profit increases of 171.89% to 225.66% and 229.15%, respectively [2] Group 3: Electric Equipment and Cable Industry - Baobian Electric's profit increase is attributed to enhanced market development and increased project orders, while Baoshan Co. anticipates a net profit growth of 167.98% to 301.98% due to optimized sales policies and improved internal management [3] - New Energy Taishan is expected to turn losses into profits in the first half of the year, reflecting a positive trend in the electric cable sector [3] Group 4: Shipbuilding and Rare Earth Industries - The shipbuilding sector is experiencing significant growth, with companies like China Shipbuilding, China Power, and China Heavy Industry expecting net profit increases exceeding 200% due to effective management and increased delivery of civilian ships [5] - The rare earth industry is also thriving, with companies like China Rare Earth and Guangsheng Nonferrous Metals expected to turn losses into profits, driven by rising prices of rare earth products [4] Group 5: Turnaround Companies - 22 central enterprise-controlled listed companies are expected to turn losses into profits, with quality improvement and efficiency enhancement being key factors for their performance recovery [6] - Companies like Zhongnan Co. and Taiji Co. have reported successful turnarounds due to strengthened management and cost control measures [6][7] Group 6: Management and Efficiency Improvements - Many companies achieving year-on-year growth or reduced losses attribute their success to ongoing quality improvement and efficiency enhancement initiatives [7] - Companies are focusing on optimizing resource allocation, controlling costs, and improving operational efficiency as critical drivers of performance growth [7]

Core Viewpoint - The performance of low-altitude economy companies in the first half of 2025 shows mixed results, with 12 companies reporting profits and 12 companies experiencing losses [3][5]. Group 1: Performance Overview - As of July 14, 2025, 24 companies in the low-altitude economy index disclosed their performance forecasts, revealing a split between profitable and loss-making entities [3]. - Among the 24 companies, 12 reported profits while the other 12 faced losses [3]. - Four companies are expected to see profit increases of over 50%: Zongshen Power (001696.SZ), Longxin General (603766.SH), Huijia Times (603101.SH), and Changyuan Donggu (603950.SH) [6]. Group 2: Profit and Loss Analysis - Companies such as Aerospace Development (000547.SZ) and Aerospace Rainbow (002389.SZ) reported losses, with the latter citing delays in delivery due to user demand plans [8]. - Aerospace Power (600893.SH) and Aerospace Electric (002025.SZ) achieved profitability but saw a decline in net profit compared to the previous year [6]. - North Navigation (600435.SH) turned a profit, expecting a net profit of 105 million to 120 million yuan in the first half of 2025 [7]. Group 3: Industry Challenges - Many companies in the low-altitude economy sector, particularly those in the aviation industry and low-altitude mainframe manufacturers, reported losses [5][8]. - The losses were attributed to various factors, including market environment impacts, product transformation challenges, and increased operational costs [9]. - Despite ongoing losses, some companies like Chuan University Zhisheng (002253.SZ) are actively pursuing low-altitude economy projects, indicating a commitment to future growth [9].

Group 1 - The company forecasts a turnaround in net profit for the first half of 2025, expecting a range of 105 million to 120 million yuan, compared to a net loss of 74.2168 million yuan in the same period last year [2][4] - The expected net profit after deducting non-recurring gains and losses for the first half of 2025 is projected to be between 95 million and 105 million yuan [4] - The performance forecast period is from January 1, 2025, to June 30, 2025 [3] Group 2 - The previous year's total profit was -105.1969 million yuan, with a net loss attributable to the parent company of -74.2168 million yuan [5] - The earnings per share for the previous year were -0.0494 yuan per share [6] Group 3 - The main reason for the expected turnaround is an increase in the delivery of key products by the company compared to the same period last year [7]

Group 1 - Aishuo Co., Ltd. expects a net loss of 170 million to 280 million yuan for the first half of 2025, with a net loss of 410 million to 520 million yuan after excluding non-recurring gains and losses [1] - Changcheng Military Industry anticipates a net loss of 25 million to 29.5 million yuan for the first half of 2025, with a net loss of 35 million to 41 million yuan after excluding non-recurring gains and losses [1] - Changyuan Donggu expects a net profit of 155 million to 180 million yuan for the first half of 2025, representing a year-on-year increase of 62.65% to 88.88% [1] Group 2 - Beifang Navigation forecasts a net profit of 105 million to 120 million yuan for the first half of 2025, turning around from a loss of 74.2168 million yuan in the same period last year [3] - Xizi Clean Energy expects a net profit of 130 million to 180 million yuan for the first half of 2025, a decrease of 47.40% to 62.01% compared to the same period last year [4] - Tianbao Infrastructure anticipates a net profit of 90 million to 130 million yuan for the first half of 2025, representing a year-on-year increase of 1581.80% to 2329.27% [4] Group 3 - Taiping Bird expects a net profit of approximately 77.7 million yuan for the first half of 2025, a decrease of about 55% compared to the same period last year [6] - Xibu Chuangye forecasts a net profit of approximately 295 million yuan for the first half of 2025, an increase of 88.99% compared to the same period last year [8] - Zhengbang Technology expects a net profit of 190 million to 210 million yuan for the first half of 2025, a year-on-year increase of 249.03% to 264.72% [9] Group 4 - Songzhi Co., Ltd. anticipates a net profit of 140 million to 170 million yuan for the first half of 2025, representing a year-on-year increase of 53.58% to 86.49% [10] - Hailide expects a net profit of 280 million to 310 million yuan for the first half of 2025, a year-on-year increase of 47.65% to 63.47% [12] - Chenhua Co., Ltd. forecasts a net profit of 48.8176 million to 56.6284 million yuan for the first half of 2025, a year-on-year increase of 25% to 45% [13] Group 5 - Yuanlin Co., Ltd. expects a net loss of 68 million to 92 million yuan for the first half of 2025, with a net loss of 70 million to 95 million yuan after excluding non-recurring gains and losses [14] - Chuanhua Zhili anticipates a net profit of 500 million to 550 million yuan for the first half of 2025, representing a year-on-year increase of 72.78% to 90.06% [15] - Longyuan Technology expects a net profit of 26 million to 31 million yuan for the first half of 2025, a year-on-year increase of 116.61% to 158.26% [17] Group 6 - Jiangshan Co., Ltd. forecasts a net profit of 300 million to 360 million yuan for the first half of 2025, a year-on-year increase of 75.65% to 110.78% [32] - Ganli Pharmaceutical expects a net profit of 600 million to 640 million yuan for the first half of 2025, a year-on-year increase of 100.73% to 114.12% [33] - Zhongyan Chemical's subsidiary signed a 6.809 billion yuan mining rights transfer contract [35]

[Important Content Alert](index=1&type=section&id=Important%20Content%20Alert) The company anticipates achieving profitability in the first half of 2025, reversing previous losses - The company expects to achieve a **turnaround in net profit** for the first half of 2025[2](index=2&type=chunk) Key Financial Data for H1 2025 Performance Forecast | Metric | Estimated Range (CNY 10,000) | Prior Period (CNY 10,000) | Change | | :--- | :--- | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders | 10,500 to 12,000 | -7,421.68 | Turnaround to Profit | | Net Profit Excluding Non-Recurring Gains and Losses | 9,500 to 10,500 | -8,610.79 | Turnaround to Profit | [I. Current Period Performance Forecast](index=1&type=section&id=I.%20Current%20Period%20Performance%20Forecast) This section details the company's performance forecast for the first half of 2025, including expected net profit and non-recurring profit figures [1. Performance Forecast Period](index=1&type=section&id=1.%20Performance%20Forecast%20Period) This performance forecast covers the period from January 1, 2025, to June 30, 2025 - The performance forecast period is from **January 1, 2025, to June 30, 2025**[3](index=3&type=chunk) [2. Performance Forecast Details](index=1&type=section&id=2.%20Performance%20Forecast%20Details) The company projects H1 2025 net profit attributable to parent company shareholders to be CNY 105-120 million, reversing losses, with net profit excluding non-recurring items estimated at CNY 95-105 million H1 2025 Estimated Net Profit | Metric | Estimated Range (CNY 10,000) | | :--- | :--- | | Net Profit Attributable to Parent Company Shareholders | 10,500 to 12,000 | | Net Profit Excluding Non-Recurring Gains and Losses | 9,500 to 10,500 | - Compared to the prior period's net loss of **CNY 74.2168 million** attributable to parent company shareholders, a **turnaround to profitability** is expected[2](index=2&type=chunk)[4](index=4&type=chunk) [3. Unaudited Performance Forecast Data](index=2&type=section&id=3.%20Unaudited%20Performance%20Forecast%20Data) The financial data disclosed in this performance forecast is preliminary and has not been audited by a certified public accountant - The performance forecast data has **not been audited** by a certified public accountant[4](index=4&type=chunk) [II. Prior Period Operating Performance and Financial Condition](index=2&type=section&id=II.%20Prior%20Period%20Operating%20Performance%20and%20Financial%20Condition) This section presents the company's operating performance and financial status for the first half of the previous year H1 2024 Operating Performance and Financial Condition | Metric | Amount (CNY 10,000) | | :--- | :--- | | Total Profit | -10,519.69 | | Net Profit Attributable to Parent Company Shareholders | -7,421.68 | | Net Profit Excluding Non-Recurring Gains and Losses Attributable to Parent Company Shareholders | -8,610.79 | | Earnings Per Share | -0.0494 CNY/share | [III. Primary Reasons for Current Period's Expected Profitability](index=2&type=section&id=III.%20Primary%20Reasons%20for%20Current%20Period's%20Expected%20Profitability) The expected profitability is primarily driven by increased product deliveries from the company's headquarters, aligning with the '14th Five-Year Plan' product delivery cycle - Increased delivery of key products from the company's headquarters compared to the prior period is the **primary reason for the turnaround to profitability**[6](index=6&type=chunk) - The performance growth is related to the **product delivery cycle at the end of the '14th Five-Year Plan'**[6](index=6&type=chunk) [IV. Risk Alert](index=2&type=section&id=IV.%20Risk%20Alert) The company confirms no other significant uncertainties exist that would impact the accuracy of this performance forecast - The company has **no other significant uncertainties** that would affect the accuracy of this performance forecast[7](index=7&type=chunk) [V. Other Explanatory Notes](index=2&type=section&id=V.%20Other%20Explanatory%20Notes) This section clarifies that the forecast data is preliminary and unaudited, advising investors to exercise caution - This forecast data is **preliminary and unaudited** by an accounting firm[8](index=8&type=chunk) - The final accurate financial data will be subject to the company's officially disclosed **2025 semi-annual report**[8](index=8&type=chunk) - Investors are reminded to **exercise caution regarding investment risks**[8](index=8&type=chunk)

Core Viewpoint - The company, Beifang Navigation (600435), is expected to achieve a net profit attributable to shareholders of the parent company in the range of 105 million to 120 million yuan for the first half of 2025, marking a turnaround from a net loss of 74.2168 million yuan in the same period last year [1] Financial Performance - The anticipated net profit for the first half of 2025 represents a significant improvement compared to the previous year's loss [1] - The expected net profit after deducting non-recurring gains and losses is projected to be between 95 million and 105 million yuan [1]

Group 1 - The defense and military industry sector is experiencing adjustments, with the defense military ETF (512810) showing fluctuations, including a drop of over 1% before narrowing its losses [1] - The ETF has seen significant inflows, with over 1.68 billion yuan invested in the past 10 days, indicating strong bullish sentiment despite recent declines [1] - Among the 80 constituent stocks of the ETF, most have declined, with notable drops including Changcheng Military Industry down nearly 7% and Guorui Technology down over 3% [1] Group 2 - Analysts suggest that the upcoming mid-year report season may bring uncertainty regarding the performance of previously high-profile stocks, leading to potential short-term differentiation [3] - Huafu Securities maintains a bullish outlook on the sector, while Zhonghang Securities believes the defense military industry is in a state with ample upward potential and limited downside risk [3] - Zhejiang Merchants Securities highlights three main investment themes for the defense military sector by 2025: military trade, new domains and qualities, and restructuring [3] Group 3 - The defense military ETF (512810) has undergone a share split, reducing the trading threshold from approximately 120 yuan to around 60 yuan, making it more accessible for investors [4]

Core Viewpoint - The China Securities Index for State-owned Enterprises in Aerospace Technology has shown a mixed performance in the A-share market, with a recent decline but positive growth over the past month, three months, and year-to-date [1] Group 1: Index Performance - The China Securities Index for State-owned Enterprises in Aerospace Technology closed at 2453.88 points, down 0.64% with a trading volume of 17.406 billion [1] - Over the past month, the index has increased by 7.20%, by 18.44% over the last three months, and by 6.34% year-to-date [1] Group 2: Index Composition - The index comprises 40 representative listed companies from state-owned enterprises involved in aerospace technology, including sectors such as aerospace equipment, materials, information, and security [1] - The index was established on December 28, 2018, with a base value of 1000.0 points [1] Group 3: Top Holdings - The top ten weighted companies in the index are: - Aero Engine Corporation (9.24%) - AVIC Xi'an Aircraft Industry (8.48%) - AVIC Optoelectronics (7.72%) - AVIC Shenyang Aircraft Corporation (5.98%) - Hongdu Aviation (4.66%) - Northern Navigation (4.23%) - AVIC Aircraft (3.95%) - AVIC High-tech (3.94%) - Aerospace Electronics (3.91%) - Zhongke Star Map (3.86%) [1] Group 4: Market Distribution - The market distribution of the index holdings shows that the Shanghai Stock Exchange accounts for 63.93%, the Shenzhen Stock Exchange for 35.46%, and the Beijing Stock Exchange for 0.60% [1] Group 5: Industry Breakdown - The industry composition of the index holdings is as follows: - Industrial sector: 82.67% - Materials sector: 5.83% - Information technology: 5.14% - Communication services: 4.70% - Consumer discretionary: 1.67% [2] Group 6: Sample Adjustment - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2] - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2]

Core Viewpoint - The company, Beifang Navigation, has experienced significant growth since its listing in 2003, with its market value increasing from 1.18 billion to 21.22 billion, but recent years have shown a decline in both revenue and profit [1][3][5] Group 1: Business Overview - Beifang Navigation's main business is in the military manufacturing industry, with core products categorized into dual-use military and civilian products, which account for 97.89% of revenue [3] - The company achieved a net profit attributable to shareholders of 0.27 billion in its first year and 0.59 billion in the latest fiscal year, marking a cumulative profit growth of 118.57% over 22 years [3] - In the last five years, the company's profitability has shown significant volatility, with a 69.29% year-on-year decline in net profit for 2024 [3] Group 2: Revenue Analysis - Beifang Navigation's revenue was 3.006 billion in 2020, decreasing to 2.748 billion in 2024, reflecting a trend of first increasing and then decreasing revenue over the past five years [3] - The revenue for 2024 saw a year-on-year decline of 22.91% [3] Group 3: Market Value and Stock Performance - Since its listing, Beifang Navigation's market value has increased by 16.99 times, indicating long-term investment value [5] - The peak market value reached 48.664 billion on May 27, 2015, with a stock price of 65.35, but as of July 3, the market value has decreased to 21.221 billion, representing a loss of 27.442 billion or 56.39% from its peak [5]

Investment Rating - The report rates the military industry as "Buy" [1] Core Viewpoints - The military industry is expected to perform well in the long term due to increasing great power competition and rising defense expenditures [3][9][10] - A grand military parade is scheduled for September 3, 2025, showcasing domestic military equipment and advancements [8][20] - Japan is set to deploy F-35B stealth fighters as early as August, indicating a shift in regional military dynamics [8][10] Summary by Sections Investment Highlights - Key investment areas include: 1. Assembly: AVIC Shenyang Aircraft Corporation, Aerospace South Lake, AVIC Xi'an Aircraft Industry [4] 2. Components: AVIC Optoelectronics, Guobang Electronics, Ruichuang Micro-Nano [4] 3. Subsystems: AVIC Avionics, North Navigation [4] 4. Materials and Processing: Feilihua, Guangwei Composite, Huaqin Technology, Bolite, Western Materials, Aviation Materials [4] - Notable stocks include: - Assembly: Aerospace Rainbow, AVIC Chengfei [4] - Components: Unisoc, Aerospace Electric, Hongyuan Electronics, Zhenhua Technology, Torch Electronics [4] - Subsystems: Aero Engine Corporation, Jianghang Equipment [4] - Materials and Processing: AVIC Heavy Machinery, AVIC High-Tech, Western Superconducting, Aerospace Technology [4] Market Review - The military sector saw a 7.46% increase last week, outperforming the market by 5.54 percentage points [12][13] - The Shanghai Composite Index rose by 1.91%, while the ChiNext Index increased by 5.69% [12][13] - The China Securities National Security Index performed the best, rising by 8.31% [16] Major News in the Military Industry - The Shanghai Cooperation Organization defense ministers' meeting was held in Qingdao, emphasizing regional security cooperation [20] - The upcoming military parade will feature all domestically produced active combat equipment, highlighting advancements in military capabilities [21][23] - The focus of the parade will be on commemorating the victory in the Anti-Japanese War and showcasing the modernization of the military [24][25]