Core Viewpoint - The company, Holoway (688682.SH), is developing a comprehensive measurement system for commercial aerospace, which includes satellite antennas, RF microwave components, vacuum micro-discharge, and whole satellite OTA, creating a closed-loop from single-unit precision testing to comprehensive validation of entire satellites [1] Group 1: Business Development - Holoway has established deep cooperative relationships with several major satellite companies in the domestic commercial aerospace sector [1] - The demand for satellite measurement in the commercial aerospace field is continuously increasing, leading to positive growth in the company's satellite measurement system business [1] Group 2: Order Growth - The company has experienced rapid growth in orders within the commercial aerospace sector this year [1] - The customer base for satellite manufacturing has expanded, primarily due to the brand effect established with benchmark clients [1] - The value per client is increasing quickly, attributed to the company's expanded product line in satellite measurement systems, including the addition of whole satellite measurement systems and optical measurement systems [1]

Market Overview - The Shanghai Composite Index closed at 3844.86 points, above the six-month moving average, with a gain of 0.26% [1] - The total trading volume of A-shares reached 137.87 billion yuan [1] Stocks Breaking the Six-Month Moving Average - A total of 363 A-shares have surpassed the six-month moving average today [1] - Notable stocks with significant deviation rates include: - Meideng Technology (12.35% deviation) - Junting Hotel (12.24% deviation) - Tietuo Machinery (12.03% deviation) [1] Detailed Stock Performance - Top performers with their respective metrics: - Meideng Technology: 14.72% increase, 23.35% turnover rate, latest price 74.80 yuan [1] - Junting Hotel: 13.79% increase, 8.10% turnover rate, latest price 26.07 yuan [1] - Tietuo Machinery: 13.81% increase, 22.55% turnover rate, latest price 26.45 yuan [1] - Other notable stocks include: - GAC Group: 10.00% increase, latest price 8.36 yuan, 8.62% deviation [1] - Guangda Jiabao: 9.86% increase, latest price 3.23 yuan, 8.50% deviation [1] - Mingpai Jewelry: 10.03% increase, latest price 6.47 yuan, 8.26% deviation [1]

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]

Summary of Key Points Core Viewpoint - The company, Holowell, experienced a decline in stock price by 2.29% on November 21, with a trading volume of 54.77 million yuan. The financing data indicates a net buying of 26.98 million yuan, while the total financing and margin balance reached 96.83 million yuan, suggesting a high level of financing activity relative to its market capitalization [1]. Financing and Margin Data - On November 21, Holowell had a financing buy-in amount of 4.39 million yuan, with a financing repayment of 4.12 million yuan, resulting in a net financing buy of 0.27 million yuan. The total financing balance was 96.83 million yuan, accounting for 3.06% of the circulating market value, which is above the 90th percentile of the past year [1]. - The margin data shows that there were no shares sold or repaid on that day, with a margin balance of 0.00 yuan, also indicating a high level relative to the past year [1]. Company Profile and Business Overview - Holowell, established on July 10, 2007, and listed on April 20, 2021, is located in the China (Shanghai) Free Trade Zone. The company specializes in radar and wireless communication, providing systems, software, and services for testing and simulation [1]. - The main revenue sources for Holowell are: electromagnetic measurement (87.23%), electromagnetic field simulation and analysis (9.30%), other supplementary services (3.43%), and general testing services (0.04%) [1]. Financial Performance - As of September 30, Holowell had 5,848 shareholders, an increase of 2.94% from the previous period. The average number of circulating shares per person decreased by 2.86% to 17,414 shares [2]. - For the period from January to September 2025, Holowell reported a revenue of 215 million yuan, reflecting a year-on-year growth of 14.27%. However, the net profit attributable to the parent company was 7.04 million yuan, showing a significant decrease of 31.98% year-on-year [2]. Dividend Distribution - Since its A-share listing, Holowell has distributed a total of 95.90 million yuan in dividends, with 47.80 million yuan distributed over the past three years [3].

Investment Rating - The report maintains a "Positive" outlook on the defense and military industry, indicating a turning point in profitability and growth potential [6][4]. Core Insights - The military industry is expected to enter a new growth cycle driven by the initiation of the "14th Five-Year Plan" equipment construction, military trade, and commercial aerospace advancements [2][3]. - The overall revenue for the military sector increased by 3.07% year-on-year in the first three quarters of 2025, while net profit attributable to shareholders decreased by 9.89%, showing a narrowing decline compared to the previous year [6][11]. - Key segments such as components, sub-systems, and assembly levels have shown signs of recovery, with revenue growth turning positive for the first time since 2021 [18][25]. Summary by Sections 1. Performance Analysis - In Q3 2025, revenue growth rates for components, sub-systems, and assembly levels were 8.30%, 3.37%, and 1.16% respectively, marking a positive shift from negative growth in 2024 [18][19]. - The net profit for the components level increased by 6.94% year-on-year, while sub-systems and assembly levels saw declines of 28.98% and 19.48% respectively [18][23]. 2. Cash Flow Improvement - The cash flow from operations for sub-systems and assembly levels improved, while components faced temporary pressure [40][42]. - The sales collection ratio for assembly levels rose significantly by 23.23 percentage points to 92.50% in Q3 2025, indicating better cash flow management [40][41]. 3. Prepayments and Inventory - Prepayments (including contract liabilities) across all levels showed an upward trend, with assembly levels increasing by 21.85% to 63.345 billion yuan [48][49]. - Inventory levels for components, sub-systems, and assembly increased by 12.57%, 8.81%, and 19.82% respectively, suggesting a positive outlook for future performance [53][54]. 4. Segment Performance - The weaponry segment led revenue growth with a remarkable 27.52% increase, while the aerospace segment grew by 6.17% and the information technology segment by 5.37% [35][36]. - The information technology segment achieved a net profit growth rate of 136.38%, indicating strong performance and future growth potential [36][39].

Core Viewpoint - The military electronics sector experienced a decline of 0.99% on November 11, with *ST WanFang leading the drop, while the Shanghai Composite Index closed at 4002.76, down 0.39% [1] Group 1: Market Performance - The military electronics sector's individual stock performance varied, with notable gainers including Guoguang Electric, which rose by 8.93% to a closing price of 107.30, and *ST Dali, which increased by 3.83% to 16.28 [1] - The trading volume for Guoguang Electric was 91,600 shares, with a transaction value of 965 million yuan [1] - Other stocks in the sector, such as Zhonghaida and Huolaiwo, also saw increases of 2.98% and 2.45%, respectively [1] Group 2: Capital Flow - The military electronics sector saw a net outflow of 982 million yuan from main funds, while retail investors contributed a net inflow of 559 million yuan [3] - Speculative funds recorded a net inflow of 423 million yuan into the sector [3]

Core Insights - The military electronics sector experienced a 0.6% increase on November 3, with Holleywo leading the gains [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] Stock Performance - Holleywo (688682) closed at 34.22, up 7.88% with a trading volume of 46,300 lots and a transaction value of 154 million [1] - Kesi Technology (688788) closed at 70.98, up 6.19% with a trading volume of 91,900 lots and a transaction value of 638 million [1] - Jinxinno (300252) closed at 13.89, up 5.63% with a trading volume of 513,600 lots and a transaction value of 69.6 million [1] - Other notable performers include ST Wanfang (000638) up 5.01% and ST Aowei (002231) up 4.95% [1] Fund Flow Analysis - The military electronics sector saw a net outflow of 32.73 million from institutional investors, while retail investors experienced a net outflow of 130 million [2] - Conversely, speculative funds recorded a net inflow of 163 million [2] Individual Stock Fund Flow - Zhenhua Technology (000733) had a net inflow of 71.65 million from institutional investors, while retail investors saw a net outflow of 88.14 million [3] - Huazhi Chuangtong (300045) recorded a net inflow of 71.28 million from institutional investors, with retail investors experiencing a net outflow of 40.02 million [3] - Other stocks like Guoguang Electric (688776) and Aerospace Development (000547) also showed significant net inflows from institutional investors [3]

Core Insights - The commercial aerospace sector in the A-share market has seen a collective surge, with several stocks reaching significant gains, indicating strong investor interest and market momentum [1][2]. Stock Performance - Aerospace Intelligent Equipment (航天智装) experienced a limit-up increase of 20%, with a total market capitalization of 17.6 billion and a year-to-date gain of 89.65% [2]. - Wanlong Optoelectronics (万隆光电) rose by 16.06%, with a market cap of 2.473 billion and a year-to-date increase of 39.19% [2]. - Shanghai Aerospace (上大股份) saw an increase of over 10%, with a market cap of 12.9 billion and a year-to-date decline of 4.64% [2]. - Aerospace Science and Technology (航天科技) also increased by 10.02%, with a market cap of 16.7 billion and a year-to-date gain of 91.25% [2]. - Shanghai Port Bay (上海港湾) rose by 10.01%, with a market cap of 8.115 billion and a year-to-date increase of 48.81% [2]. - Other notable performers include Fujida (富士达) up by 7.34%, Holiwo (霍莱沃) up by 7.06%, and Shanghai Huguang (上海沪工) up by 6.94% [2]. Upcoming Missions - The China Manned Space Engineering Office announced plans for four flight missions in the coming year, including the launch of the Tianzhou 10 cargo spacecraft and the Shenzhou 22 and 23 manned spacecraft, as well as the Mengzhou 1 manned spacecraft [1]. - The Shenzhou 22 and 23 missions will be launched from the Jiuquan Satellite Launch Center, each with a crew of three astronauts, with Shenzhou 22 featuring one astronaut conducting a long-term stay experiment of over one year [1].

Group 1 - The commercial aerospace sector experienced a significant rally on November 3, with companies like Aerospace Intelligence and Aerospace Technology hitting their daily price limits [1] - Shanghai Port Bay also saw a price limit increase, alongside notable gains from companies such as Holleywo, Shanghai Huguang, Chaojie Co., and Jiuzhiyang [1]

Core Insights - Holleywo (688682.SH) reported its Q3 2025 results on October 28, 2025, indicating a total of 5 institutional investors holding shares, amounting to 11.32% of the total share capital [1] - The institutional holding percentage decreased by 2.64 percentage points compared to the previous quarter [1] Institutional Investors - The total shares held by institutional investors reached 11.53 million shares [1] - The institutional investors include Shanghai Laizhen Investment Partnership, Shanghai Laici Investment Partnership, Shanghai Technology Venture Capital, Fidelity Low Carbon Growth Mixed A, and Fidelity Renyuan Steady Three-Month Holding Mixed (FOF) A [1] - There was one new public fund disclosed this quarter, Fidelity Low Carbon Growth Mixed A, while 86 public funds were not disclosed compared to the previous quarter [1] Social Security Fund - One social security fund, the National Social Security Fund 114 Combination, was not disclosed this quarter compared to the previous quarter [1]