Market Performance - The A-share market showed strength with the three major indices rising, as the ChiNext Index increased by over 1%, the Shanghai Composite Index rose by 0.21%, and the Shenzhen Component Index gained 0.52% [2] Quantum Technology Sector - The quantum technology concept was active, with companies like Geer Software achieving a 10% increase, Dahua Intelligent rising by 9.98%, Yongding Co. up by 7.59%, and Western Superconducting gaining 7.40% [4][5] - Beijing Boson Quantum Technology will provide top-tier quantum combination optimization algorithm solutions and stable quantum computing power services for the "Libra AI" quantum computing project of China Merchants Bank, utilizing a self-developed 1000-qubit coherent optical quantum computer [4] Individual Stock Highlights - Industrial Fulian (601138) saw a rapid increase, rising by 3.06% during the session, with a total market capitalization reaching 1.5 trillion yuan [5]

Core Viewpoint - The A-share market is experiencing a collective rise in controllable nuclear fusion concept stocks, driven by recent policy announcements that highlight the importance of quantum technology and nuclear fusion as new economic growth points [1][2]. Group 1: Stock Performance - An Tai Technology (000969) and Dongfang Tantalum (000962) both reached the daily limit up of 10% [1]. - Western Superconducting (688122) increased by 9.09%, while Aikosebo rose by 8.47% [1][2]. - Yongding Co. (600105) saw a rise of 7.26%, and Jinbei Electric (002533) increased by 5.20% [1][2]. - Other notable performers include Jingda Co. (600577) with a 5.10% increase and Xuguang Electronics (600353) with a 4.66% rise [1][2]. Group 2: Market Context - On October 24, the Central Committee proposed the 15th Five-Year Plan, emphasizing the development of future industries, including quantum technology and nuclear fusion [2]. - The report from Guojin Securities indicates that these sectors are expected to receive top-level policy support and funding, enhancing their growth potential [2].

Core Insights - Nuwei Co., Dongfang Tantalum Industry reached new highs, while Antai Technology hit the daily limit up, indicating strong market performance in these companies [1] - Other companies such as Haheng Huaton, Changfu Co., Hezhuan Intelligent, and Western Superconducting also experienced upward movement, reflecting a positive trend in the sector [1] Company Performance - Nuwei Co. and Dongfang Tantalum Industry achieved record highs, showcasing their strong market position and investor confidence [1] - Antai Technology's stock reached the daily limit up, indicating significant investor interest and potential growth prospects [1] - Haheng Huaton, Changfu Co., Hezhuan Intelligent, and Western Superconducting followed suit with notable increases, suggesting a broader positive sentiment in the industry [1]

Core Insights - The stock price of Western Superconducting Technologies Co., Ltd. increased by 8.78%, reaching 83.54 CNY per share, marking a new all-time high [1] - The company's total market capitalization surpassed 54.272 billion CNY [1] - The trading volume amounted to 1.29 billion CNY [1]

Core Insights - The defense and military sector is showing strong performance in the market, leading with a 1.14% increase and a trading volume of 22.5 billion [1] - Recent policy developments, particularly the "15th Five-Year Plan," emphasize the importance of national defense, which is expected to create significant market opportunities [3] - The third-quarter financial reports indicate a robust recovery in the defense and military sector, with 27 out of 32 ETF component stocks reporting profits, and many showing substantial year-on-year growth [3] Group 1: Market Performance - The defense and military sector is outperforming other sectors, with a trading volume of 225 billion and a 1.14% increase [1] - The popular defense military ETF (512810) has seen a rapid increase of over 1%, breaking through key moving averages [1] - Key stocks such as Western Superconducting and Tianhai Defense have shown significant price increases, with Western Superconducting rising over 10% [1] Group 2: Policy Developments - The "15th Five-Year Plan" highlights the enhancement of national defense capabilities, positioning it alongside economic and technological advancements [3] - The plan aims to foster emerging industries, particularly in low-altitude economy, commercial aerospace, and deep-sea technology, which are closely aligned with the defense sector [3] - Analysts believe these developments could lead to the emergence of several trillion-dollar markets, benefiting companies within the defense and military ecosystem [3] Group 3: Financial Performance - Among the 32 component stocks of the defense military ETF that have reported third-quarter results, 27 have achieved profitability, with half of them showing double-digit growth year-on-year [3] - Notable financial performances include Chujiang New Materials with a 20-fold increase in net profit, and other companies like Gaode Infrared and Huafeng Technology also reporting significant profit growth [3][4] - The overall positive financial trends reinforce the expectation of strong demand recovery in the defense sector for 2025-2026 [4]

Core Insights - Western Superconducting Technologies Co., Ltd. has seen its stock price increase by 5.21% to 80.80 CNY per share, with a total market capitalization of 52.493 billion CNY as of October 28 [1] - The company has experienced a continuous stock price rise for six days, accumulating a total increase of 13.11% during this period [1] - The company's main business includes the research, production, and sales of high-end titanium alloy materials, superconducting products, and high-performance high-temperature alloy materials, with revenue contributions of 57.59%, 29.34%, 9.01%, and 4.07% respectively [1] Shareholder Insights - E Fund's ETF, the E Fund SSE STAR 50 ETF (588080), is among the top ten circulating shareholders of Western Superconducting, having increased its holdings by 537,400 shares in the second quarter, totaling 18.8324 million shares, which represents 2.9% of the circulating shares [2] - The ETF has generated an estimated floating profit of approximately 75.3295 million CNY today, with a total floating profit of 168 million CNY during the six-day stock price increase [2] - The E Fund SSE STAR 50 ETF has a total scale of 62.683 billion CNY and has achieved a year-to-date return of 50.42%, ranking 698 out of 4,218 in its category [2] Fund Manager Insights - The fund managers of the E Fund SSE STAR 50 ETF are Lin Weibin and Cheng Xi, with Lin having a cumulative tenure of 12 years and 240 days, managing assets totaling 106.5 billion CNY, and achieving a best fund return of 81.86% during his tenure [3] - Cheng has a cumulative tenure of 9 years and 177 days, managing assets of 195.312 billion CNY, with a best fund return of 131.04% during his tenure [3]

Core Viewpoint - The military equipment sector has experienced a short-term surge, with notable increases in stock prices for several companies [1] Company Summaries - Western Superconducting Technologies Co., Ltd. saw its stock price rise by over 10% [1] - North China Longyuan Electric Co., Ltd. experienced a stock price increase of over 7% [1] - Other companies such as Great Wall Military Industry Co., Ltd., Guokai Military Industry Co., Ltd., and Maxinlin also witnessed significant stock price increases [1]

Investment Rating - The report maintains a "Positive" outlook for the defense and military industry [6] Core Insights - The 20th Central Committee's Fourth Plenary Session emphasizes the importance of military equipment construction, indicating that the military equipment development is expected to accelerate with the implementation of the 14th Five-Year Plan [9][12] - The successful testing of the Zhuque-3 rocket marks a significant advancement in reusable rocket technology, which is anticipated to lower launch costs and accelerate satellite networking [14][17] - The military sector's stock prices have stabilized recently, with a focus on both domestic and international demand, highlighting the investment value in the military industry [18] Summary by Sections Investment Suggestions and Targets - The report suggests focusing on military electronics, new domains, and the aerospace propulsion chain, with specific stock recommendations including: - Military Electronics: Aerospace Electric (002025, Buy), Zhonghang Optical (002179, Buy), and others [18] - New Domains: Haige Communication (002465, Buy) and others [18] - Aerospace Propulsion Chain: Xibei Superconductor (688122, Buy) and others [18] - Military Trade/Main Equipment: Zhonghang Shenfei (600760, Unrated) and others [18] Industry Performance - The defense and military industry index increased by 2.81%, underperforming compared to the Shanghai Composite Index [21][22] - The report notes that the military industry has shown resilience, with a focus on key components and materials as demand rises [18][21] Recent Developments - The report highlights significant recent events in the military sector, including successful military exercises and advancements in military technology [30][31]

Group 1 - The non-ferrous metal sector showed significant gains, with the non-ferrous metal leader ETF (159876) reaching a peak increase of 2.96% during the day and closing up 2.39%, reflecting strong bullish sentiment and increased trading volume [1][3] - Among the constituent stocks, Xiamen Tungsten and Huayu Mining hit the daily limit, while Jiangxi Copper rose over 6%, and Western Superconducting increased by more than 5% [1][3] - The performance of the non-ferrous metal sector is robust, with 21 out of 23 disclosed third-quarter reports showing profits, and 16 companies reporting year-on-year net profit growth [3] Group 2 - The U.S. September CPI data came in lower than expected, supporting the Federal Reserve's potential interest rate cuts, which may positively impact industrial metal prices [4][6] - Despite weaker seasonal demand, supply disruptions and low inventory levels are providing price support for industrial metals [4] - The non-ferrous metal sector is characterized by varying degrees of market conditions and drivers, suggesting a diversified investment approach through the non-ferrous metal leader ETF (159876) could be beneficial [6]

Core Insights - The aviation equipment sector experienced a rise of 0.68% on October 27, with Hangxin Technology leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Stock Performance - Hangxin Technology (300424) closed at 20.17, with a significant increase of 10.76% and a trading volume of 430,600 shares, amounting to 827 million yuan [1] - Zongheng Co., Ltd. (688070) saw a rise of 7.49%, closing at 53.10, with a trading volume of 27,200 shares and a turnover of 142 million yuan [1] - Western Superconductor (688122) increased by 5.89%, closing at 76.80, with a trading volume of 363,200 shares and a turnover of 2.767 billion yuan [1] - Other notable performers include Yuelida (300696) up 4.34%, Hitec High-tech (002023) up 3.43%, and Parker New Materials (605123) up 3.19% [1] Fund Flow Analysis - The aviation equipment sector saw a net outflow of 90.2583 million yuan from institutional investors, while retail investors contributed a net inflow of 34.4578 million yuan [2] - The overall net inflow from speculative funds was 55.8005 million yuan [2] Individual Stock Fund Flow - Filihua (300395) had a net inflow of 454 million yuan from institutional investors, but a net outflow of 12.8976 million yuan from speculative funds [3] - Western Superconductor (688122) experienced a net inflow of 201 million yuan from institutional investors, with a net outflow of 83.8497 million yuan from speculative funds [3] - Hangxin Technology (300424) had a net inflow of 70.1027 million yuan from institutional investors, but faced a net outflow from both speculative and retail investors [3]