Investment Rating - The report maintains an "Overweight" rating for the industry [5]. Core Viewpoints - The commercial aerospace sector is experiencing significant catalytic growth, leading to a substantial increase in industry prosperity [8][17]. - The establishment of a dedicated Commercial Aerospace Administration by the China National Space Administration marks a new phase in the development of commercial aerospace, enhancing stability and transparency in the industry [21]. - The successful launch of the Zhuque-3 reusable rocket signifies a breakthrough in China's commercial liquid rocket capabilities, supporting satellite internet and commercial remote sensing needs [10][21]. Summary by Sections Industry Overview - The industry comprises 142 listed companies with a total market capitalization of 2,915.34 billion yuan and a circulating market value of 2,530.17 billion yuan [2]. Key Developments - The Zhuque-3 rocket's successful launch on December 3, 2025, represents a critical milestone in the commercial aerospace sector, enabling a payload capacity of over 20 tons and reducing launch costs significantly [10][25]. - The 2025 China (Zhengzhou) Military Technology Information and Equipment Expo highlights advancements in military technology and the integration of civilian and military sectors [13][26]. Focus Areas - **Aerospace Equipment**: The Civil Aviation Administration is seeking opinions on emergency medical equipment for large aircraft, indicating a focus on enhancing safety standards [11][23]. - **Military Electronics**: Companies such as Gaode Infrared and Tianjian Technology are highlighted as key players in the military electronics sector [19][22]. - **Nuclear Equipment**: China and France are enhancing cooperation in the peaceful use of nuclear energy, focusing on technology innovation and safety [30][32]. Market Performance - The defense and military industry index rose by 2.82% in the past week, outperforming other major indices [33][38]. - The current PE (TTM) for the defense and military industry is 69.3 times, with aerospace equipment at 73.6 times and space equipment at 317.8 times, indicating high investor interest [39][44].

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry, indicating a positive outlook compared to the overall market performance [23]. Core Insights - The defense and military sector is expected to see accelerated task deliveries in Q4, with a potential increase in orders towards the end of the year, serving as a catalyst for investment [3]. - Geopolitical uncertainties are driving demand for consumable military equipment and military trade, presenting significant investment opportunities [3]. - The report highlights a strong correlation between supply and demand in the global military trade market, particularly in the Middle East and Asia, which is expected to continue [3]. - Key investment areas include new main battle equipment, consumable weapons, military trade, and military intelligence [3]. - The report emphasizes the importance of monitoring the performance of specific stocks within the military sector, particularly those related to high-end combat capabilities and new quality combat forces [3]. Market Review - Last week, the Shenwan Defense and Military Index rose by 2.85%, while the CSI Military Leaders Index increased by 1.52%. In comparison, the Shanghai Composite Index rose by 1.4%, and the CSI 300 Index increased by 1.64% [4][11]. - The top five performing stocks in the defense and military sector were: - Saiwei Electronics (44.85%) - TeFa Information (34.07%) - Leike Defense (32.3%) - Aerospace Power (32.22%) - Zhongtian Rocket (21.6%) [11]. - Conversely, the bottom five performing stocks were: - Beihua Co. (-11.59%) - Guorui Technology (-4.84%) - Yaxing Anchor Chain (-3.56%) - Chenxi Aviation (-3.2%) - Aileda (-2.71%) [12]. Valuation Changes - The current PE-TTM for the Shenwan Military Sector is 77.60, indicating it is in the upper range historically, with a valuation percentile of 65.76% since January 2014 and 92.45% since January 2019 [12][13]. - The report notes a slight differentiation in valuations among sub-sectors, with aerospace and aviation equipment showing relatively high PE valuations since 2020 [12].

Group 1 - The 2025 Asian General Aviation Exhibition concluded with a total contract value exceeding 7 billion RMB, with 837 aircraft (sets) sold [1] - The exhibition attracted 75 international exhibitors from countries including the USA, Canada, Germany, the UK, and France, featuring renowned companies such as Bell Helicopter, Pilatus, and Daher [1] - Notable aircraft showcased included the latest Cavalon model from German Daher and the new SR series G7+ from American Cirrus Aircraft [1] Group 2 - The exhibition not only displayed aircraft hardware but also facilitated collaboration among upstream and downstream enterprises, accelerating the integration of the low-altitude economy industry chain [2] - A diverse matrix of eVTOL products was presented, highlighting the potential of low-altitude economy in urban commuting, intercity transportation, and emergency rescue scenarios, thus moving the industry from experimental stages to commercial implementation [2]

Core Viewpoint - The announcement details the provision of a guarantee by the company’s wholly-owned subsidiary, Liyang Power, for a loan requested by its subsidiary, Guizhou Aviation Engine Maintenance Co., Ltd., to support its operational funding needs. Group 1: Guarantee Details - The guaranteed amount is 10 million yuan, with a loan term of one year, and the guarantee period extends for three years after the loan's maturity [1]. - The maximum guarantee amount for 2025 is set at 121 million yuan, as approved by Liyang Power's board on December 27, 2024 [2]. - The guarantee covers principal, interest, penalties, and all related costs, with Guizhou Aviation providing full asset collateral [2]. Group 2: Necessity and Reasonableness of the Guarantee - The guarantee is deemed necessary to meet the operational funding needs of Guizhou Aviation, which is a wholly-owned subsidiary and has a stable financial condition [5]. - As of the announcement date, the total guarantees provided by Liyang Power amount to 91 million yuan, representing 0.23% of the company's latest audited net assets, with no overdue guarantees reported [5].

证券代码：600893 证券简称：航发动力 公告编号：2025-035 中国航发动力股份有限公司 关于 2025 年度担保进展的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 担保对象及基本情况 | | 被担保人名称 本月担保金额 | 1,000 | 万元 | 中国航发贵州航空发动机维修有限责任公司 | | --- | --- | --- | --- | --- | | 担保 对象 | | | | | | | 实际为其提供的担保余额 | 8,100 | 万元 | | | | 是否在前期预计额度内 | 是 | □否 | □不适用：_________ | | | 本月担保是否有反担保 | 是 | □否 | □不适用：_________ | 累计担保情况 | 对外担保逾期的累计金额（万元） | 0 | | --- | --- | | 截至本公告日上市公司及其控股 子公司实际提供担保总额（万元） | 9,100 | | 担保总额占上市公司最近一期经 审计净资产的比例（%） | 0.23 | | 本年度已批准的 ...

Group 1 - The "Zhuque-3" rocket is set to make its maiden flight in mid to late November, potentially becoming China's first operational reusable launch vehicle [1] - Beijing plans to construct a large centralized data center system with over 1 GW power capacity in the 700-800 km twilight orbit to facilitate large-scale AI computing in space [1] - As of November 28, 2025, the CSI Defense Index (399973) has risen by 0.36%, with notable increases in constituent stocks such as KST (688568) up 4.50% and Triangle Defense (300775) up 2.98% [1] Group 2 - The CSI Defense Index closely tracks the performance of listed companies under the top ten military industrial groups, reflecting the overall performance of defense industry stocks [2] - As of October 31, 2025, the top ten weighted stocks in the CSI Defense Index include AVIC Shenyang Aircraft (600760) and Aero Engine Corporation of China (600893), collectively accounting for 44.41% of the index [2]

Core Insights - On November 27, during the opening of the 2025 Asian General Aviation Expo, China Aviation Engine Corporation (CAEC) held a promotional event for its turboprop engines, signing cooperation agreements or intent purchase contracts with 17 clients, totaling over 1 billion yuan [1][2] - The event featured the launch of seven turboprop engines, including AEP20, AEP50E, AEP60E, AEP100, ATP120, turboprop-6, and AEP500, which are competitive products in the general aviation power sector [1] - The promotional event also highlighted various power products, including three types of electric power products, which were publicly introduced for the first time [1] Company Developments - CAEC's research institute signed a 700 million yuan intent order for the AEP20 engine, a 200 kW turboprop engine designed for 1-2 ton single-engine or 3-4 ton twin-engine general aircraft or drones, with the first engine expected to be delivered for test flight by the end of 2026 [2] - Additional agreements included a 160 million yuan cooperation and intent order for the AES100 engine with Southern and Zhejiang Kaibowei Aerospace Technology Co., Ltd., and over 100 million yuan in intent orders for various other engines and systems [2]

Core Insights - The 2025 Asian General Aviation Exhibition opened in Zhuhai, showcasing advancements in green aviation technology [1] - China Aviation Engine Group presented its latest green engines, including a significant number of new products [1] Product Highlights - A total of 58 general aviation power products were exhibited, with 29 products making their debut, including megawatt-class hybrid power systems and pure electric propulsion systems [1] - The megawatt-class hybrid power system is designed for future eVTOLs (3 to 8 tons) and distributed electric propulsion aircraft (10 to 20 tons) [1] - A hydrogen fuel turbine engine was also introduced, which produces zero carbon emissions compared to traditional aviation fuel engines that emit 3 kilograms of CO2 for every kilogram of fuel burned [1]

Core Insights - The 2025 Asia General Aviation Exhibition has opened in Zhuhai, showcasing new achievements in the general aviation and low-altitude economy sectors [1] - China Aviation Engine Group presented its latest green engines, including a megawatt-class hybrid power system and a hydrogen fuel turbine engine, marking significant advancements in aviation technology [1][5] Group 1: Product Innovations - The megawatt-class hybrid power system is designed for future eVTOLs (electric Vertical Take-Off and Landing) and distributed electric propulsion aircraft, targeting 3 to 8 tons and 10 to 20 tons respectively [3] - A hydrogen fuel turbine engine was introduced, which has zero carbon emissions compared to traditional aviation fuel engines that produce 3 kilograms of CO2 for every kilogram of fuel burned [7] - The hydrogen fuel turbine engine has successfully completed 60 hours of continuous testing, achieving performance benchmarks ahead of other markets [7] Group 2: Business Opportunities - China Aviation Engine Group plans to sign cooperation agreements or intent procurement contracts with 17 clients during the exhibition, with a total value exceeding 1 billion yuan [9]

Core Insights - China Aviation Engine Group Co., Ltd. signed cooperation agreements or intent procurement contracts for various general aviation engines and related power products with 17 customers, totaling over 1 billion yuan [1] - The company showcased 58 types of general aviation power products at the 2025 Asian General Aviation Exhibition, including the ATP120 engine and a pure electric propulsion system, with 29 products making their debut [1] - The ATP120 engine is designed for low-cost lifecycle and can be applied to various platforms, with potential for expansion into hybrid propulsion systems and hydrogen fuel engines [1] - The pure electric propulsion system provides lift during vertical takeoff and thrust during level flight [1] - The general aviation industry in China has seen steady growth over the past decade, with significant advancements in domestic power development capabilities and technology [1] - Predictions indicate that the number of general aviation aircraft in China will exceed 13,000 in the next 20 years, with a total demand for nearly 10,000 gas turbine engines, resulting in a market value of $17.2 billion [1] Industry Developments - China Aviation Engine Group emphasizes a comprehensive layout across all types, power coverage, and lifecycle support to enhance the series and lineage development of aviation power products [2] - The company aims to explore new collaborative development models with related enterprises and institutions to support the high-quality development of China's low-altitude economy and general aviation industry [2]