Group 1 - The core achievement of AVIC Xi'an Aircraft Industry Group is the successful development of a 12-meter horizontal dual five-axis mirror milling equipment and mirror milling process technology, addressing the manufacturing challenge of ultra-large, ultra-thin skin parts that are prone to deformation due to their weak rigidity [1][2] - The large curved skin of the domestically produced Y-20 transport aircraft is characterized as a "metal film," combining ultra-large size and ultra-thin properties, which makes it a typical weak rigidity component that is difficult to process with traditional CNC equipment [1] - The company has established a technological system for the processing of large curved skins through collaborative efforts in innovation and research, overcoming multiple core technical challenges [1] Group 2 - The successful development of the new milling technology provides strong support for the research and mass production of China's Y-20 and C919 aircraft, highlighting the country's independent innovation capabilities in high-end aerospace manufacturing [2] - The innovative design of the "stress line closed thermal symmetrical space frame within a frame" structure has broken through the design bottleneck of large horizontal five-axis machine tools, meeting the automation and high-precision processing needs for ultra-large, ultra-thin skins [1][2] - The technology includes dual five-axis linkage mirror synchronous control and real-time closed-loop measurement of wall thickness, addressing technical challenges in the mirror milling CNC system [1]

Core Viewpoint - The article highlights the development and achievements of the aviation industry in Xi'an, China, emphasizing the establishment of a comprehensive aviation industrial chain and the implementation of innovative technologies to enhance efficiency and production capabilities [1][3][4]. Group 1: Industry Development - The new Zhi-60 civil search and rescue aircraft successfully completed its first flight in Xi'an, showcasing China's advancements in aviation technology [1]. - Xi'an has become a national aviation industry cluster, housing 1/4 of the country's aviation research capabilities and over 2,000 supporting enterprises [1]. - The Xi'an Yanliang National Aviation High-tech Industry Base features over 1,000 parts manufacturing companies and 12,000 CNC machine tools, capable of producing a wide range of aircraft components [2]. Group 2: Technological Innovations - The efficiency of operations has significantly improved, with key data calculations for landing gear now taking only 1 minute instead of 1 day due to smart production lines [4]. - A new five-axis milling equipment for aircraft skin production has been developed, reducing costs to 1/10 of imported equipment and increasing efficiency by 50% [5]. - The establishment of a climate environment laboratory allows for the simulation of 12 different weather conditions, achieving international leading standards [6]. Group 3: Ecosystem and Talent Development - The region's import and export value increased by 24% year-on-year, with local products increasingly reaching global markets through the China-Europe Railway Express [7]. - A talent alliance involving 18 universities has been formed to train nearly 10,000 professionals annually, enhancing the local talent pool [7]. - The implementation of a three-year action plan for large aircraft supporting capabilities includes comprehensive support in land, funding, and talent, facilitating rapid project initiation [8]. Group 4: Future Outlook - By 2024, the overall scale of Xi'an's aviation cluster is expected to exceed 150 billion yuan, positioning it as a leader in the domestic aviation industry [8]. - The local government aims to build a "world-class aviation new city," focusing on large aircraft production and low-altitude economy development [8].

Group 1 - The core viewpoint of the news is that AVIC Xi'an Aircraft Industry Group has successfully developed a 12-meter horizontal dual five-axis mirror milling equipment and mirror milling process technology to address the manufacturing challenges of ultra-large and ultra-thin skin parts, filling a domestic gap [1][2] Group 2 - The Y-20 large transport aircraft features a large curved skin that is described as a "metal film," which presents significant challenges during processing due to its weak rigidity and susceptibility to deformation from external forces [2] - Traditional CNC equipment is inadequate for processing flexible deformations and real-time wall thickness control, making the machining of ultra-large and ultra-thin skins a significant challenge in the aircraft manufacturing sector [2] - AVIC Xi'an has established a technological system for the dual five-axis mirror milling of large curved skins, overcoming several core technical challenges through collaboration with universities and research institutions [2] - The innovative design of the "stress line closed thermal symmetrical space frame within a frame" has broken through structural design bottlenecks, meeting the automation and high-precision processing needs for large aircraft's ultra-large and ultra-thin skins [2] - The new equipment is equipped with dual five-axis linkage mirror synchronous control and real-time closed-loop measurement control for wall thickness, addressing technical challenges in the mirror milling CNC system [2] - The development of flexible surface workpiece contour matching processing methods has resolved issues related to overall deformation of large thin-walled parts, enabling rapid clamping and automated mirror milling of any shape skin [2] - The successful development of this technology provides strong support for the research and mass production of China's Y-20 and C919 aircraft, showcasing the country's independent innovation capabilities in high-end aviation manufacturing [2]

Investment Rating - The report rates the military industry as "Overweight" [5] Core Views - The military industry is expected to perform well in the long term due to increasing great power competition and rising defense expenditures [9][20] - Recent developments include the joint naval exercises between China and Russia, and the U.S. building a counter-drone defense system [8][20] - The report highlights the restructuring of China's aviation supply chain and the importance of domestic production capabilities in the aerospace sector [22][23] Summary by Sections Investment Highlights - Recommended stocks include: 1) Assembly: AVIC Shenyang Aircraft (600760.SH), AVIC Xi'an Aircraft (000768.SZ), AVIC South Lake (688552.SH) 2) Components: AVIC Optoelectronics (002179.SZ), Guobang Electronics (603678.SH), Ruichuang Micro-Nano (688002.SH) 3) Subsystems: AVIC Aircraft (600372.SH), North Navigation (600435.SH) 4) Materials and Processing: Feilihua (300395.SZ), Guangwei Composite (300699.SZ), Huayin Technology (688281.SH) [5][9][10] Market Performance - The defense military index rose by 5.24% from August 4 to August 8, outperforming the Shanghai Composite Index by 3.13 percentage points [11][12] - The military industry ranked 3rd out of 29 sectors during this period [12] Major News in the Military Industry - The joint naval exercises "Maritime Joint-2025" between China and Russia included real combat training and operational coordination [20][21] - The U.S. is developing a counter-drone defense system, with Ukraine being a testing ground for various technologies [8][9] - Japan is expanding its military influence through participation in multinational exercises, indicating a shift in its defense posture [28][30]

金融界8月13日消息，上证指数高开高走，沪深300航天国防指数 (300国防，L11608)报10598.53点。 从沪深300航天国防指数持仓样本的行业来看，航空占比100.00%。 数据统计显示，沪深300航天国防指数近一个月上涨3.59%，近三个月上涨6.85%，年至今上涨2.81%。 资料显示，指数样本每半年调整一次，样本调整实施时间分别为每年6月和12月的第二个星期五的下一 交易日。权重因子随样本定期调整而调整，调整时间与指数样本定期调整实施时间相同。在下一个定期 调整日前，权重因子一般固定不变。遇临时调整时，当沪深300指数调整样本时，沪深300行业指数样本 随之进行相应调整。在样本公司有特殊事件发生，导致其行业归属发生变更时，将对沪深300行业指数 样本进行相应调整。当样本退市时，将其从指数样本中剔除。样本公司发生收购、合并、分拆等情形的 处理，参照计算与维护细则处理。 据了解，为反映沪深300指数样本中不同行业公司证券的整体表现，为投资者提供分析工具，将沪深300 指数300只样本按行业分类标准分为11个一级行业、35个二级行业、90余个三级行业及200余个四级行 业。沪深300行业指数系列分 ...

Group 1 - The AMAC Transportation Equipment Index (AMAC Transportation, H30064) experienced a decline of 0.59%, closing at 2971.02 points with a trading volume of 46.95 billion [1] - Over the past month, the AMAC Transportation Equipment Index has increased by 8.50%, by 17.92% over the last three months, and by 10.82% year-to-date [1] - The index is based on the classification guidelines from the China Securities Association and includes 43 industry classification indices, with a base date of January 1, 2009, set at 1000.0 points [1] Group 2 - The top ten holdings of the AMAC Transportation Equipment Index include China CRRC (9.51%), China Shipbuilding (8.92%), AVIC Shenyang Aircraft (6.84%), Guangqi Technology (6.81%), China Heavy Industry (6.02%), Aero Engine Corporation of China (5.64%), AVIC Xi'an Aircraft (4.07%), AVIC Aircraft (3.12%), Aerospace Electronics (3.08%), and Chunfeng Power (2.99%) [1] - The market composition of the AMAC Transportation Equipment Index shows that the Shanghai Stock Exchange accounts for 75.55% and the Shenzhen Stock Exchange accounts for 24.45% [1] - In terms of industry composition, the sample holdings of the AMAC Transportation Equipment Index are comprised of 92.06% in industrials and 7.94% in consumer discretionary [2]

Group 1 - The stock price of AVIC Xi'an Aircraft Industry Group is influenced by various factors, including market sentiment, capital preferences, policy direction, and performance drivers, but these are not the primary factors [1] - The company asserts that it cannot control its stock price within a certain range and encourages investigation into potential short-selling activities targeting core military enterprises [1] - AVIC Xi'an emphasizes its commitment to enhancing military capabilities through technological innovation and reform, focusing on core responsibilities and achieving annual research and production goals to improve its competitive edge [1]

Summary of Key Points from Conference Call Industry Overview - The military industry is currently experiencing a favorable comparative advantage within the overall market, with some core assets still undervalued despite high returns from certain key stocks [2][17]. Company Insights 中航光电 (AVIC Optoelectronics) - Achieved a compound annual growth rate (CAGR) of 25% in revenue and 26% in profit over the past 20 years, driven by both military and civilian product lines [1][3]. - The company has implemented cost reduction and efficiency improvement measures, including expanding financial personnel and establishing cost centers [5]. - Expected performance for 2025-2027 is projected at 3.7 billion RMB, 4.2 billion RMB, and 4.9 billion RMB respectively, with current valuations at 22x, 19x, and 17x, indicating it is currently undervalued [1][6]. - Focused on the electric vehicle sector by partnering with key automotive manufacturers to achieve growth above industry averages [4]. 航发动力 (Aero Engine Corporation of China) - The only listed platform for military aircraft engines in China, with a relatively low market valuation compared to foreign counterparts [1][9]. - Anticipates significant growth in the aftermarket as aircraft deliveries increase during the 14th Five-Year Plan, with a projected domestic revenue of approximately 45 billion RMB by 2024 [9]. - The potential aftermarket space is estimated to exceed 400 billion RMB over the next 20 years, indicating high growth certainty [9]. 中航西飞 (AVIC Xi'an Aircraft Industry Group) - Recently underwent a leadership change, with a younger management team expected to drive new development directions [11][12]. - Responsible for key components of the C919 aircraft, with a potential revenue increase of 12 billion RMB if 150 units are delivered annually [14]. - Engaged in international military trade, with high expectations for the export of the Y-20 transport aircraft [15][16]. Market Trends and Predictions - The optoelectronics sector is expected to enter a new phase of prosperity by Q4 2025, benefiting from improved fundamentals [7][8]. - The military industry is poised for a revaluation of assets as the 14th Five-Year Plan concludes and the centenary of the military approaches, with a focus on AI deployment and modernization [17]. Additional Considerations - The leadership changes at 中航西飞 indicate a strategic shift towards enhancing investor relations and increasing external communication [12]. - The challenges faced by the C919 project, including delays due to export restrictions on key technologies, have been largely resolved, with expectations for improved delivery rates in the second half of the year [13].

Investment Rating - The report maintains an "Accumulate" rating for the defense and military industry [5] Core Views - The report is optimistic about the gradual improvement of fundamentals and the upward trend in new domains and new quality combat capabilities, particularly in satellite internet construction [8][24] - The defense index has risen by 24.04% since May 6, driven by military trade and parade sentiments, indicating strong market performance [8][23] Summary by Sections Industry Overview - The defense and military industry comprises 143 listed companies with a total market value of 30,365.12 billion and a circulating market value of 25,995.20 billion [2] Market Performance - The defense and military index increased by 5.93% this week, outperforming other major indices [7][37] - The current PE(TTM) for the defense and military sector is 75.6 times, with sub-sectors showing varying valuations [7][43] Key Improvement Tracks - **Missile and Military Electronics**: Anticipated growth in demand for precision-guided munitions is expected to lead to a surge in military electronics orders starting from Q4 2024 [8][23] - **Aerospace Engine Supply Chain**: Recovery in military engine procurement and improvements in profitability are expected due to new model introductions and maintenance business growth [9][10][23] Focus Areas for Development - **New Generation Manned and Unmanned Aircraft**: The J-35 is expected to drive a new wave of growth in the aerospace supply chain [11][23] - **Satellite Internet**: The successful launch of the seventh batch of satellites for the GW constellation marks significant progress in satellite internet capabilities [12][24] - **Commercial Space Industry**: The report highlights the acceleration of commercial space activities, with plans for significant satellite launches in 2025 [14][24] Suggested Companies to Watch - **Missile and Military Electronics**: Companies like Zhenhua Technology, Hongyuan Electronics, and Torch Electronics are highlighted [19][25] - **Aerospace Engines**: Focus on Aviation Power and its supporting companies [26] - **New Generation Unmanned Aircraft**: Companies such as AVIC Shenyang Aircraft and AVIC Chengfei are recommended [27] Key Developments - **Nuclear Fusion**: The "Spark One" project aims to complete construction by the end of 2029, with a goal to demonstrate power generation by 2030 [15][28] - **Low-altitude Economy**: The successful flight of a 2-ton eVTOL for offshore oil platform logistics marks a significant milestone [16][29]

Group 1 - The company, AVIC Xi'an Aircraft Industry (Group) Company Limited, reported that as of August 8, 2025, the number of shareholders is 165,300 [1]