Market Performance - The military electronics sector rose by 0.39% on September 24, with Guankang Technology leading the gains [1] - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] Key Stocks in Military Electronics Sector - Guankang Technology (301213) closed at 55.11, up 6.16% with a trading volume of 45,500 shares and a turnover of 251 million [1] - Sichuang Electronics (600990) closed at 29.40, up 5.98% with a trading volume of 157,900 shares and a turnover of 449 million [1] - ST Tianwei (688511) closed at 21.86, up 5.60% with a trading volume of 11,600 shares and a turnover of approximately 25.24 million [1] - Aerospace Nanhai (688552) closed at 39.49, up 5.17% with a trading volume of 101,000 shares and a turnover of 391 million [1] - Zhenxin Technology (300101) closed at 25.09, up 4.45% with a trading volume of 167,900 shares and a turnover of 416 million [1] Fund Flow Analysis - The military electronics sector experienced a net outflow of 442 million from institutional investors, while retail investors saw a net inflow of 498 million [2] - The top stocks with significant fund flows included: - Aopu Optoelectronics (002338) with a net inflow of 86.90 million from institutional investors [3] - Sichuang Electronics (600990) with a net inflow of 57.72 million from institutional investors [3] - Ruichuang Weina (688002) with a net inflow of 34.46 million from institutional investors [3]

Core Viewpoint - The stock of Sichuan Electronics experienced a decline of 5.11% on September 23, trading at 26.90 CNY per share with a total transaction volume of 165 million CNY and a turnover rate of 2.22%, resulting in a total market capitalization of 7.292 billion CNY [1] Company Overview - Sichuan Electronics Co., Ltd. is located in Hefei, Anhui Province, and was established on August 18, 2000, with its listing date on May 10, 2004 [1] - The company primarily engages in the radar industry, smart industry, and energy industry, including meteorological radar, air traffic control radar, low-altitude warning radar, printed circuit boards, microwave components, smart city solutions, emergency command communication systems, Beidou equipment and systems, intelligent transportation systems, food safety intelligent equipment, special vehicle modifications, and power supply [1] - The revenue composition of the company is as follows: radar and supporting products 53.16%, public safety products 26.24%, power supply products 15.10%, mobile support equipment products 4.68%, and others 0.83% [1] Fund Holdings - One fund under AVIC Fund holds a significant position in Sichuan Electronics, specifically the AVIC Military-Civil Integration Selected A (004926), which held 500,000 shares in the second quarter, accounting for 6.53% of the fund's net value, ranking as the seventh largest holding [2] - The estimated floating loss for the fund on the current day is approximately 725,000 CNY [2] - The AVIC Military-Civil Integration Selected A fund was established on February 9, 2018, with a latest scale of 55.1098 million CNY, achieving a year-to-date return of 21.61% and a one-year return of 99.71% [2] Fund Manager Information - The fund manager of AVIC Military-Civil Integration Selected A is Han Hao, who has been in the position for 7 years and 286 days, managing total assets of 1.788 billion CNY [3] - During his tenure, the best fund return achieved was 219.33%, while the worst return was -12.9% [3]

Market Performance - The military electronics sector rose by 0.13% on September 22, with Xingtu Xinke leading the gains [1] - The Shanghai Composite Index closed at 3828.58, up 0.22%, while the Shenzhen Component Index closed at 13157.97, up 0.67% [1] Stock Performance - Notable gainers in the military electronics sector included: - Xingtu Xinke (688081) with a closing price of 35.77, up 9.66% on a trading volume of 110,000 shares and a turnover of 383 million yuan [1] - Guoguang Electric (688776) closed at 90.95, up 6.34% with a trading volume of 43,500 shares [1] - Other significant gainers included ST Wanfang (000638) up 5.02%, and Jingjia Micro (300474) up 4.12% [1] Fund Flow Analysis - The military electronics sector experienced a net outflow of 694 million yuan from institutional investors, while retail investors saw a net inflow of 759 million yuan [2][3] - Key stocks with significant fund flows included: - Jingjia Micro (300474) with a net inflow of 172 million yuan from institutional investors [3] - Gaode Infrared (002414) with a net inflow of 153 million yuan [3] - Huafeng Technology (688629) had a net inflow of 56.73 million yuan [3]

Industry Overview - The air traffic control (ATC) system is the core hub for civil aviation management, playing a crucial role in monitoring and controlling aircraft to prevent collisions and ensure safe takeoffs and landings [1][15] - The air traffic control radar is a vital component of the ATC system, responsible for collecting and transmitting data about aircraft within its jurisdiction to ensure safe and efficient flight operations [1][15] - The Chinese air traffic control radar industry has experienced significant growth, with the market size increasing from 1.48 billion yuan in 2017 to 4.45 billion yuan in 2024, representing a compound annual growth rate (CAGR) of 17.03% [1][16] Market Dynamics - The demand for air traffic control radar is expected to continue growing due to the ongoing reforms in low-altitude airspace and the development of general aviation [1][15] - Modern surveillance technologies such as ADS-B systems, transponders, and secondary radar have enhanced the ability to provide high-precision real-time flight information, significantly improving airspace safety [1][15] Industry Chain - The air traffic control radar industry chain consists of upstream raw materials and components, midstream production and manufacturing, and downstream application fields including route monitoring, airport surveillance, and emergency code transmission [9][10] Key Companies - Major companies in the Chinese air traffic control radar market include Sichuan Jiuzhou Electric, Guorui Technology, and several others, which have established a strong presence in both military and civilian markets [18][19] - Sichuan Jiuzhou Electric has reported a revenue of 461 million yuan from air traffic control products in the first half of 2025, reflecting a year-on-year growth of 10.29% [19] - Guorui Technology has achieved a revenue of 1.55 billion yuan from radar equipment and related systems in the first half of 2025, with a year-on-year increase of 16.54% [20] Technological Trends - The air traffic control radar industry is moving towards greater integration, miniaturization, and the incorporation of artificial intelligence and big data technologies to enhance operational efficiency and reliability [21][22][23] - Future developments will focus on creating integrated systems that combine various radar types and sensors, reducing equipment size and power consumption while improving collaborative detection and information fusion capabilities [22][23]

Core Viewpoint - The stock of Sichuan Electronics has experienced fluctuations, with a recent decline of 2.01% and a year-to-date increase of 23.68%, indicating volatility in its market performance [1][2]. Company Overview - Sichuan Electronics, established on August 18, 2000, and listed on May 10, 2004, is located in Hefei, Anhui Province. The company primarily engages in radar, smart industry, and energy sectors, including meteorological radar, air traffic control radar, and various related products [2]. - The revenue composition of Sichuan Electronics includes radar and related products (53.16%), public safety products (26.24%), power products (15.10%), mobile support equipment (4.68%), and others (0.83%) [2]. Financial Performance - For the first half of 2025, Sichuan Electronics reported a revenue of 677 million yuan, reflecting a year-on-year growth of 5.61%. However, the net profit attributable to shareholders was -43.43 million yuan, a decrease of 11.50% compared to the previous year [2]. - The company has distributed a total of 276 million yuan in dividends since its A-share listing, with 19.97 million yuan distributed over the past three years [3]. Shareholder Structure - As of June 30, 2025, the number of shareholders for Sichuan Electronics increased by 21.62% to 33,600, with an average of 8,015 circulating shares per shareholder, a decrease of 17.78% [2]. - Notable institutional shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 1.328 million shares, and new entrants such as Guotou Ruijin National Security Mixed Fund and Changcheng Jiujia Innovation Growth Mixed Fund [3].

Investment Rating - The report maintains a "Recommendation" rating for the low-altitude economy sector, indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [49]. Core Insights - The report emphasizes the progress of companies such as Wanfu, Zongshen, Sichuang, and Jifeng in the low-altitude sector, highlighting their innovative capabilities and strategic partnerships [4][5]. - The low-altitude economy is projected to thrive, driven by advancements in urban air mobility (UAM) and the development of eVTOL (electric Vertical Take-Off and Landing) aircraft, with Wanfu as a leading player [7][8]. - The report outlines the performance of the Huachuang Transportation Low-altitude 60 Index, which decreased by 4.5% this week but has increased by 18.1% year-to-date, outperforming the Shanghai and Shenzhen 300 Index [23][24]. Summary by Sections Industry Basic Data - The low-altitude economy sector comprises 121 listed companies with a total market capitalization of 32,786.20 billion and a circulating market value of 28,031.62 billion [2]. - The absolute performance over the last 1 month, 6 months, and 12 months is -0.7%, 4.8%, and 15.4%, respectively, while the relative performance is -9.4%, -9.5%, and -21.6% [2]. Company Developments - **Wanfu Aowei**: Showcased the VoloCity eVTOL model at the 2025 World Intelligent Industry Expo, emphasizing its role in urban air transportation and the strategic importance of acquiring Volocopter [5][7]. - **Zongshen Power**: Signed a strategic cooperation agreement with Shanhe Star Aviation to launch a light sport aircraft powered by Zongshen's CA500 engine, marking a significant step in the low-altitude economy [11][14]. - **Sichuang Electronics**: Presented its low-altitude safety solutions at the 2025 Fourth Low-altitude Economic Development Conference, focusing on urban safety monitoring [16][18]. - **Jifeng Technology**: Established Jifeng Aviation to enhance its low-altitude business, leveraging partnerships in the drone sector to create new revenue streams [21][22]. Investment Recommendations - The report suggests focusing on key segments within the low-altitude economy, including manufacturers like Wanfu Aowei and Xirui, supply chain players like Zongshen Power, and digital infrastructure companies like Lais Information [31][32]. - The report highlights the potential for growth in three main application scenarios for the low-altitude economy: cultural tourism, passenger transport, and cargo transportation [31].

Core Insights - On September 3, the Shanghai Composite Index fell by 1.16%, with institutional investors appearing on the trading lists of 26 stocks, net buying 13 and net selling 13 [1][2]. Institutional Trading Summary - The stock with the highest net buying from institutional seats was Chenxin Pharmaceutical, which closed at the daily limit with a gain of 10.02% and a turnover rate of 5.97%, with a total transaction amount of 696 million yuan. Institutional seats accounted for a net purchase of 115.76 million yuan [2][5]. - Xiaocheng Technology saw a decline of 3.46% and a high turnover rate of 33.97%, with a total transaction amount of 1.812 billion yuan. Institutional seats net bought 110.91 million yuan, but the stock experienced a net outflow of 70.78 million yuan [2][5]. - Airo Energy rose by 19.15% with a turnover rate of 10.07% and a transaction amount of 707 million yuan. Institutional seats net bought 72.55 million yuan, while there was a net outflow of 44.77 million yuan [3][5]. Performance of Net Bought Stocks - Stocks with net institutional buying averaged a gain of 7.73%, outperforming the Shanghai Composite Index. Notable performers included Kexin Machinery and Shangneng Electric, both closing at the daily limit [3][4]. - The probability of stocks with net institutional buying rising the next day is 48.60%, with a 46.11% chance of outperforming the index [3]. Performance of Net Sold Stocks - The stock with the highest net selling by institutions was Julun Intelligent, which had a turnover rate of 32.87% and a net selling amount of 98.80 million yuan. The stock experienced a net outflow of 727 million yuan [3][5]. - Fourchuang Electronics and Chengfei Integration also saw significant net selling, with net outflows of 72.35 million yuan and 73.89 million yuan, respectively [4][5]. Stock Connect Activity - On September 3, 21 stocks on the trading list had either Shanghai or Shenzhen Stock Connect participation, with net buying seen in stocks like Yanshan Technology and Sanwei Communication, amounting to 280 million yuan and 114 million yuan, respectively [7][8]. - Notable net selling included Huasheng Technology and Chenxin Pharmaceutical, with net selling amounts of 270 million yuan and 54.72 million yuan, respectively [7][8].

四创电子(600990)今日跌停，全天换手率7.06%，成交额5.40亿元，振幅12.68%。龙虎榜数据显示，机 构净卖出7943.35万元，沪股通净买入2133.29万元，营业部席位合计净买入1463.78万元。 上交所公开信息显示，当日该股因日跌幅偏离值达-8.84%上榜，机构专用席位净卖出7943.35万元，沪 股通净买入2133.29万元。 证券时报·数据宝统计显示，上榜的前五大买卖营业部合计成交2.19亿元，其中，买入成交额为8763.12 万元，卖出成交额为1.31亿元，合计净卖出4346.28万元。 具体来看，今日上榜的营业部中，共有4家机构专用席位现身，即买五、卖一、卖三、卖五，合计买入 金额608.12万元，卖出金额8551.47万元，合计净卖出7943.35万元，沪股通为第一大买入营业部及第二 大卖出营业部，买入金额为5534.67万元，卖出金额为3401.38万元，合计净买入2133.29万元。 8月28日公司发布的半年报数据显示，上半年公司共实现营业收入6.77亿元，同比增长5.61%，实现净利 润-4343.19万元。（数据宝） 四创电子9月3日交易公开信息 | 买/卖 | 会员营业 ...

Summary of the Conference Call for Sichuan Electronics Company Overview - **Company**: Sichuan Electronics - **Core Business Lines**: Low-altitude economy, controllable nuclear fusion, and military industry [4][20] Key Points and Arguments Low-altitude Economy - **Government Support**: Anhui Province issued 456 billion yuan in special bonds, with 18.6 billion yuan allocated for Hefei's low-altitude economic infrastructure, benefiting Sichuan Electronics [2][6] - **Market Position**: Sichuan Electronics is positioned as a leader in low-altitude safety, leveraging its core competencies in Anhui [4][6] - **Product Development**: The company has launched the UM low-altitude navigation system and various platforms for low-altitude service regulation and drone applications, validated in complex scenarios [2][10] Controllable Nuclear Fusion - **Expansion Cycle**: The controllable nuclear fusion sector is expected to enter a capital expenditure expansion cycle in the next 3-5 years, benefiting suppliers of materials and equipment [7][18] - **Project Wins**: Sichuan Electronics' subsidiary, Huayao Electronics, won the EAST power supply project, indicating strong competitiveness in the PSM high-voltage power supply sector [4][7] Military Industry - **Market Growth**: The military market is projected to perform strongly in 2025, which is expected to positively impact Sichuan Electronics as a military enterprise [8][20] - **Support from Parent Company**: The major shareholder, Zhongdian Bowei, controlled by China Electronics Corporation, provides significant support for technology development and market expansion [4][8] Radar Technology and Market Position - **Core Business**: Radar technology constitutes over half of the company's revenue, including wind, rain, and cloud measurement radars [5][11] - **Market Share**: Sichuan Electronics holds a significant market share in the domestic civil aviation sector, particularly in radar systems [5][11] Economic Efficiency through Resource Reuse - **Platform Development**: The "Low Air Quantity" platform integrates existing urban infrastructure to reduce construction costs and enhance overall efficiency [12][13] Future Prospects - **Profit Recovery**: The company anticipates a return to profitability in 2026, following a challenging year in 2025 [5][20] - **Strategic Focus**: Sichuan Electronics is expected to benefit from its focus on military, nuclear fusion, and low-altitude sectors, which are anticipated to drive stock performance [20] Additional Important Insights - **Anhui's Strategic Advantage**: Anhui Province has seen significant growth in low-altitude routes and airspace, with 27 new low-altitude routes and 30 airspaces, marking increases of 50% and 40% respectively [3][16] - **Government Initiatives**: The issuance of special bonds reflects the government's commitment to supporting industries related to low-altitude economy and safety [21]

Core Viewpoint - The company reported its 2025 semi-annual results, showing a slight increase in revenue but a decline in net profit, indicating a mixed performance with signs of recovery in the second quarter [1][4]. Financial Performance - In the first half of 2025, the company achieved revenue of 677 million yuan, a year-on-year increase of 5.61% [1] - The net profit attributable to shareholders was -43 million yuan, a year-on-year decrease of 11.5% [1] - The adjusted net profit after excluding non-recurring items was -46 million yuan, showing a year-on-year increase of 21.12% [1] - For Q2 2025, revenue reached 384 million yuan, reflecting a year-on-year growth of 27.29% [1] - The net profit attributable to shareholders for Q2 was -220 yuan, a year-on-year increase of 28.93% [1] - The gross margin for the first half of 2025 was 18.94%, an increase of 2.45 percentage points year-on-year [1] Cost Control and R&D Investment - The company significantly reduced sales expenses in Q2 2025 to 16 million yuan, a year-on-year decrease of 31.15% [2] - Management expenses were reduced to 45 million yuan, down 18.77% year-on-year [2] - R&D expenses in Q2 2025 increased to 3 million yuan, a substantial year-on-year increase of 141.61% [2] - The overall R&D investment for the first half of 2025 reached 52 million yuan, with an R&D intensity of 7.67% [2] Market Expansion and New Product Development - The company is expanding its product matrix, developing new core products in various fields including water conservancy and military training [2] - The company won bids for several radar projects, including a P-band wind profile radar in Hunan and a water monitoring radar project in Liaoning, marking entry into the water conservancy radar market [3] - The company is also advancing in low-altitude technology and nuclear fusion, with significant projects underway in these areas [4] Future Growth Potential - The company is expected to benefit from the recovery in downstream industry demand and the expansion into new markets [4] - Revenue projections for 2025-2027 are estimated at 1.671 billion, 2.109 billion, and 2.693 billion yuan respectively, with net profits expected to improve over the same period [4]