Group 1 - The aerospace sector is entering a new quality and growth cycle as the "14th Five-Year Plan" concludes, with the core driving force shifting from industrial prosperity logic to performance perspective [15][13]. - The aerospace ETF has seen continuous net inflows since September 1, with its scale reaching a new high, growing by 168% since its launch on May 29 [8][24]. - The upcoming 2025 Asia General Aviation Exhibition, taking place from November 27 to November 30, will focus on low-altitude economy and cover the entire general aviation industry chain, attracting nearly 400 enterprises from 22 countries [11][12]. Group 2 - The commercial aerospace sector is experiencing significant policy support, with the National Space Administration's action plan outlining 22 key measures to promote high-quality development and safety in commercial aerospace [12][18]. - The military trade and commercial aerospace sectors are expected to accelerate, opening up growth space as the "15th Five-Year Plan" begins [13][16]. - The Chinese commercial aerospace market is projected to reach a scale of 2.3 trillion yuan in 2024 and is expected to exceed 2.5-2.8 trillion yuan in 2025, with an annual compound growth rate exceeding 20% [21][24]. Group 3 - The aerospace sector is benefiting from a surge in military orders, with a clear path to performance recovery as the "15th Five-Year Plan" is finalized and orders are released [29][21]. - The demand for military trade is expected to resonate strongly with supply, potentially breaking the long-standing Western monopoly in the high-end military trade market [17][16]. - The low-altitude economy is emerging as a new economic form, leveraging technologies like drones and eVTOLs, with significant orders already being placed [28][27]. Group 4 - The aerospace ETF Tianhong (159241) tracks the aerospace industry index and has a high concentration of military-related stocks, benefiting from developments in national defense and aerospace technology [29][30]. - Key companies in the aerospace ETF include Guangqi Technology, AVIC Shenyang Aircraft, and Aero Engine Corporation of China, which are expected to see performance improvements due to full orders and accelerated deliveries [30][29].

Core Viewpoint - The aerospace sector has experienced a notable pullback since September, but long-term investment value remains significant despite short-term sensitivity to order cycles [2][5][14]. Group 1: Market Performance - Since September, key events such as military parades and military trade orders have led to a clear retreat in the aerospace sector [2][14]. - The aerospace ETF Tianhong (159241) has seen continuous net inflows since September 1, with its scale reaching a new high, growing by 168% since its launch on May 29 [9]. - The overall market showed mixed performance, with the Shanghai Composite Index up 0.29% and the ChiNext Index down 0.44% [6]. Group 2: Future Outlook - The aerospace sector is entering a new growth cycle driven by performance perspectives, with the "14th Five-Year Plan" nearing completion and the "15th Five-Year Plan" set to initiate new equipment construction [4][15]. - The upcoming 2025 Asia General Aviation Exhibition, starting November 27, will focus on low-altitude economy and cover the entire general aviation industry chain, with an upgraded scale and participation from nearly 400 enterprises [12]. - The commercial aerospace sector is supported by a new action plan from the National Space Administration, which outlines 22 key measures to promote high-quality development [13][21]. Group 3: Industry Dynamics - The global military trade demand is expected to grow, with China's military trade volume projected to reach $45 billion by 2025, a 30% increase year-on-year [16][17]. - The commercial aerospace market in China is anticipated to grow rapidly, with estimates suggesting a market size of 2.3 trillion yuan in 2024 and a potential increase to 2.5-2.8 trillion yuan in 2025, reflecting a compound annual growth rate of over 20% [21]. - The aerospace sector is expected to benefit from a surge in satellite manufacturing revenue, which saw an 85.28% year-on-year increase in the first three quarters of the year [23]. Group 4: Investment Opportunities - The aerospace sector's growth narrative is multi-dimensional, with short-term benefits from military orders and long-term potential from commercial aerospace and low-altitude economy developments [26]. - Leading companies in the sector, such as AVIC Chengfei, AVIC Shenyang, and Aero Engine Corporation of China, are expected to see improved performance due to a combination of full orders and accelerated deliveries [26]. - The Tianhong Aerospace ETF tracks the aerospace industry index and includes major companies, making it a potentially less risky investment option for investors [26][27].

科技日报记者 于紫月 近日，AS700"祥云"载人飞艇喜获18架新订单，这是迄今为止国产民用载人飞艇领域的最大单笔订 单，昭示着市场对国产先进航空产品的充分认可，也为我国低空经济蓬勃发展注入强劲动力。 "祥云"载人飞艇由中国航空工业集团特种飞行器研究所（以下简称"特飞所"）自主研制，是我国首 款按适航规范研制、拥有完全自主知识产权的载人飞艇。其成功研发与市场化推进，对于完善我国通用 航空器谱系、拓展低空旅游新业态具有重要意义。"祥云"载人飞艇乘坐体验如何？安全性保障用了哪 些"黑科技"？还有哪些应用场景？科技日报记者就此采访了相关专家。 最佳高度俯瞰大好河山 "祥云"载人飞艇总长50米，最大航程700千米，可搭载10人。该飞艇凭借"低空慢飞、安全可靠"的 特点，可在100—300米的最佳观景高度，让游客俯瞰祖国河山大好风光，实现"人在画中游"的沉浸式体 验。 王斌斌表示，"祥云"载人飞艇的商业化落地，将有力带动从研发制造、运营维护到人员培训、基础 设施建设的全产业链发展，成为撬动我国低空经济多元化发展的重要支点之一。它的翱翔，预示着我国 通用航空"飞艇时代"的序幕正徐徐拉开。 安全性是航空器的生命线。 "飞艇 ...

Core Viewpoint - The aviation equipment sector experienced a decline of 1.92% on November 26, with Morningstar Aviation leading the drop, while the overall market showed mixed results with the Shanghai Composite Index down 0.15% and the Shenzhen Component Index up 1.02% [1][2]. Market Performance - The aviation equipment sector's performance was highlighted by individual stock movements, with notable declines in stocks such as Morningstar Aviation, which fell by 11.35% to a closing price of 17.42 [2]. - The sector's trading volume and turnover were significant, with stocks like Guangqi Technology and Feiliwa showing positive movements, while others like ST Lian Shi and Hangfa Power experienced slight declines [1][2]. Capital Flow - The aviation equipment sector saw a net outflow of 999 million yuan from institutional investors, while retail investors contributed a net inflow of 524 million yuan [2][3]. - Specific stocks like Feiliwa and ST Lian Shi had varying capital flows, with Feiliwa experiencing a net outflow from institutional investors of 35.02 million yuan [3].

Group 1 - The major indices mostly rose in early trading on November 26, with the commercial aerospace concept experiencing a peak and subsequent pullback [1] - The Aerospace ETF Tianhong (159241) recorded a trading volume exceeding 49 million yuan, with Guangqi Technology leading the gains among its constituent stocks [1] - As of November 25, the Aerospace ETF Tianhong (159241) has attracted over 140 million yuan in capital since the beginning of November [1] - The ETF tracks the Guozheng Aerospace Index, which covers the aerospace industry chain, with a combined weight of over 68% in aerospace and aviation equipment [1] - The top ten holdings include leading state-owned enterprises such as Aero Engine Corporation of China, AVIC Shenyang Aircraft Corporation, and AVIC Chengfei, providing both stability from core assets and growth potential from smaller market cap companies [1] Group 2 - The 2025 Asia General Aviation Exhibition is set to open on November 27 in Zhuhai, featuring 381 companies from 22 countries and regions [1] - On November 23, various performance teams conducted their first adaptive flight training after transitioning to Zhuhai, with the "Red Star" flight demonstration team showcasing maneuvers such as ultra-low altitude vertical climbs and half-roll landings for the first time to the public [1] - Zhuhai has established a "dual exhibition" pattern with the biennial "China Airshow" and the annual "Asia General Aviation Exhibition," aiming to deepen low-altitude economic applications and stimulate greater potential for the "Sky City" [2] Group 3 - Guotai Junan Securities believes that the Chinese aviation industry is entering a "super cycle" and suggests seizing the opportunity during this counter-cyclical period, emphasizing the long-term logic of the Chinese aviation industry [3]

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [6]. Core Insights - The geopolitical uncertainty, particularly regarding Japan's shift from "strategic ambiguity" to potential military intervention in the Taiwan Strait, has heightened the focus on the military industry [19][20]. - The defense sector is expected to see increased attention and potential investment opportunities due to the evolving geopolitical landscape [11][20]. Market Overview - The defense and military index of Shenwan fell by 1.72% this week, while the Shanghai Composite Index dropped by 3.90% [29]. - The defense and military sector's PE (TTM) stands at 67.3 times, with sub-sectors like aviation equipment at 71.5 times and aerospace equipment at 271.2 times [36]. Key Sector Dynamics Controlled Nuclear Fusion - Shanghai Electric has disclosed its involvement in multiple major fusion projects, including the domestic first plasma burning experiment device BEST and the international ITER project [21]. Low-altitude Economy - The 27th High-Tech Fair's low-altitude economy exhibition in Shenzhen showcased over 200 companies, covering the entire supply chain from eVTOL to drone components [22]. Aviation Engines & Turbines - China Aviation Power showcased 19 types of power products at the Dubai Airshow, marking the first appearance of the C919 in the Middle East [23]. Satellite Internet - The World Internet Conference highlighted the application of satellite internet in enhancing county-level economic development [26]. Suggested Focus Areas - **Missile and Military Electronics**: Companies like Zhenhua Technology, Hongyuan Electronics, and Huada Electronics are recommended for investment [16]. - **Aviation Engines**: Focus on companies like AVIC Engine and AVIC Control [16]. - **Military Trade**: Companies such as AVIC Chengfei, AVIC Shenyang, and AVIC Xi'an are highlighted [16]. - **New Domains and Quality Construction**: Emphasis on commercial aerospace and low-altitude economy companies [16].

Core Viewpoint - The recent procurement agreement for 18 AS700 manned airships signifies a breakthrough in the industrialization of domestic airship technology, reflecting strong market recognition of Chinese-made airships [1][3]. Group 1: Procurement Agreement - The Aviation Industry Special Flight Research Institute has signed a procurement agreement for 18 manned airships with Zhejiang Airspace Integration Low-altitude Industry Development Co., Ltd, highlighting the market's confidence in domestic airship products [1]. - The agreement follows a series of discussions and assessments regarding the commercial operation and sustainable profit models for the AS700 airship, culminating in a comprehensive consensus with local government [3]. Group 2: Delivery and Production - The first AS700 airship was successfully delivered to Shaoxing Jian Shui Technology City in November, marking the completion of the initial delivery phase and the transition to mass production orders [5]. - The entire process from research and development to delivery and operation of the domestic manned airship has been fully integrated, paving the way for future production and operational enhancements [5]. Group 3: Future Development and Applications - The Aviation Industry Special Flight Research Institute aims to leverage this opportunity to accelerate product optimization and expand its industrial layout, targeting diverse application scenarios such as aerial tourism, urban security, aerial surveying, emergency rescue, and customized educational programs [5]. - The goal is to promote technical standards and operational models across more regions, fostering a win-win ecosystem and contributing to the formation of a national low-altitude economic industrial cluster, thereby linking the upgrade of manufacturing with high-quality local economic development [5].

Investment Rating - The report maintains a "Positive" investment rating for the defense and military industry [5] Core Viewpoints - The uncertainty in the Asia-Pacific situation is increasing, which may accelerate the equipment construction in China, focusing on new combat capabilities [2][12] - China's high-end aviation equipment showcased at the Dubai Airshow is expected to further expand the military trade market [12][15] - The Fujian aircraft carrier has conducted its first live training at sea, indicating a significant advancement in operational capabilities and technology [12][18] - The report emphasizes the importance of domestic demand for new combat capabilities and military trade as key growth areas [19] Summary by Sections Investment Suggestions and Targets - The report highlights various investment targets across different segments, including: - Engine and fuel chain: Companies like Xi'an Aero Engine (600893), Western Superconducting (688122), and others [19][20] - New quality and domains: Companies such as Aerospace Electronics (600879), Haige Communication (002465), and others [19][20] - Military electronics: Companies like Aerospace Electric (002025), Zhonghang Optical (002179), and others [19][20] - Military trade and main equipment: Companies such as AVIC Shenyang Aircraft (600760), AVIC Chengfei (302132), and others [19][20] Industry News and Market Performance - The report notes that the defense and military industry index has outperformed the broader market, with a decline of only -1.72% compared to the Shanghai Composite Index's -3.90% [22][25] - The report provides a detailed analysis of weekly market performance, indicating that the defense and military sector remains resilient amid broader market declines [22][25] Key Events and Developments - The report outlines significant recent events, including: - The U.S. government approved a new round of arms sales to Japan, which may heighten regional tensions and prompt China to expedite its military equipment development [12][9] - The successful live training of the Fujian aircraft carrier, showcasing advanced operational capabilities [12][18] - The participation of Chinese high-end military equipment in international exhibitions, enhancing China's presence in the global military trade market [12][15]

Core Insights - The gas turbine generator set is a highly efficient power generation equipment driven by gas turbines, characterized by rapid start-stop, high efficiency, and clean emissions, making it a core device in key areas such as power peak regulation, industrial drive, and data centers [1][5] - In the context of China's energy structure transformation, the installed capacity of natural gas power generation is expected to grow from 90 million kW in 2019 to 144 million kW in 2024, with a compound annual growth rate of 9.8% [5][6] - The gas turbine market in China is projected to reach 75 billion yuan in 2024, with significant innovations achieved by companies like Dongfang Electric in hydrogen and split-shaft gas turbines [6][7] - The global data center electricity consumption is expected to increase from 415 TWh in 2024 to 945 TWh by 2030, with the U.S. accounting for 45% of this demand, creating significant export opportunities for China's gas turbine industry [8][10] Industry Overview - Gas turbine generator sets are categorized into heavy-duty, aeroderivative, and light-duty types, with heavy-duty turbines used in large power plants and light-duty turbines suitable for peak regulation [3][4] - The industry has established a complete product system covering 15-200 MW, with a focus on technological breakthroughs and market expansion [6][11] Market Dynamics - The gas turbine market in China is experiencing steady growth, driven by policies promoting natural gas utilization and the integration of renewable energy sources [5][6] - The market is characterized by a competitive landscape where international giants like GE and Siemens dominate the high-end market, while domestic companies like Dongfang Electric and Shanghai Electric are rapidly advancing [11][12] Future Trends - The gas turbine industry is expected to focus on self-sufficiency, green transformation, intelligent upgrades, and globalization [12][13][14] - There is a significant push towards the development of low-carbon and zero-carbon fuels, with ongoing research into hydrogen and ammonia combustion technologies [12] - The integration of digital and intelligent technologies is enhancing operational efficiency and extending service offerings in the gas turbine sector [13][14]

Core Insights - Insurance capital continues to increase its allocation to equity assets, with the proportion of equity assets reaching near historical highs in Q3 2025 [1] - The allocation structure shows a significant increase in technology and a reduction in high-end manufacturing sectors [5][6] - Insurance capital has accelerated its stake acquisitions in listed companies, particularly in Hong Kong stocks, with a notable increase in the number of acquisitions compared to previous years [9] Allocation Trends - In Q3 2025, the allocation of insurance capital to various asset classes is as follows: bank deposits (7.9%), bonds (50.3%), stocks (10.0%), funds (5.5%), long-term equity investments (7.9%), and other assets (18.4%) [1] - The investment proportions in bank deposits and bonds decreased by 0.7 percentage points and 0.8 percentage points, respectively, while the investment in stocks and funds surged to 15.5%, approaching the historical peak of 16.1% in H1 2015 [1] Sector and Stock Preferences - Insurance capital has significantly increased its allocation to banks, steel, and textile sectors, while reducing holdings in high-end manufacturing sectors such as new energy and military [5] - Key stocks that saw increased investment include Agricultural Bank of China, Postal Savings Bank, Industrial and Commercial Bank of China, and Hikvision, while reductions were noted in stocks like Goldwind Technology and Aviation Industry Corporation of China [6][8] Shareholding Activities - In 2025, insurance capital has made 30 stake acquisitions in listed companies, surpassing the total for the entire years of 2020 and 2024, with 25 of these acquisitions in Hong Kong stocks [9] - The trend indicates a shift towards acquiring dividend-yielding assets in Hong Kong due to declining bond yields and rising traditional dividend assets [9]