Group 1 - The stock of AVIC Xi'an Aircraft Industry Group Co., Ltd. (中航西飞) closed at 25.94 yuan, with an increase of 1.13% on October 24 [1] - A block trade occurred with a total volume of 240,000 shares and a transaction amount of 6.2136 million yuan, with a transaction price of 25.89 yuan and a premium rate of -0.19% [1] - Over the past three months, the stock has recorded two block trades with a total transaction amount of 12.2206 million yuan [1] Group 2 - In the last five trading days, the stock has increased by 1.65%, with a total net inflow of 39.5796 million yuan from main funds [1]

Core Insights - On October 24, AVIC Xi'an Aircraft Industry Group Co., Ltd. (中航西飞) executed a block trade of 240,000 shares, amounting to 6.2136 million yuan, which represented 1.04% of the total trading volume for the day [1][2] - The transaction price was 25.89 yuan per share, reflecting a discount of 0.19% compared to the market closing price of 25.94 yuan [1][2] Summary by Category - **Transaction Details** - Date of transaction: October 24, 2025 [2] - Security code: 000768 [2] - Security name: AVIC Xi'an Aircraft [2] - Transaction price: 25.89 yuan [2] - Volume traded: 240,000 shares [2] - Total transaction amount: 6.2136 million yuan [2] - Buyer brokerage: Institutional special [2] - Seller brokerage: Shenwan Hongyuan Securities Co., Ltd., Shenzhen Jintian Road Securities Business Department [2]

Group 1 - China's reusable rocket technology is making significant breakthroughs, with the successful static fire test of the Zhuque-3 rocket, which is designed for large satellite constellation networking [1] - The Zhuque-3 rocket is a large-capacity, low-cost, reusable liquid launch vehicle made from stainless steel, indicating advancements in material use for space technology [1] - The country aims to enhance its reusable rocket capabilities, with multiple rockets, including Zhuque-3 and Tianlong-3, set for maiden flights or tests this year [1] Group 2 - The commercial space industry in China is entering a recovery phase, with a projected increase in rocket launch demand due to the "Hundred Arrows, Thousand Stars" plan, which anticipates nearly 2,500 satellite launches by 2035 [2] - The industry is experiencing a policy boost, with Shandong province aiming for an annual production capacity of 100 rockets and 150 commercial satellites by 2027, targeting a market size of 50 billion yuan [1] Group 3 - A total of 67 stocks in the A-share market are involved in the commercial space industry, with 16 stocks receiving ratings from five or more institutions, indicating strong institutional interest [3] - Companies like Zhimin Da and Narui Radar are expected to see significant profit growth, with projected increases in net profit exceeding 100% for several firms [3][4] - Dragonfly Co. has seen a remarkable increase in northbound capital holdings, with a 1,085.7% increase in shares held, reflecting strong investor interest in the commercial aerospace sector [5][6]

Core Viewpoint - The company has integrated market value management into its operational performance assessment system and is implementing various measures to enhance its market value [2] Group 1: Operational Performance - The company is focused on improving operational quality, with continuous growth in revenue and net profit in recent years [2] - It has successfully completed the production and delivery tasks for various military aircraft, ensuring national defense needs are met [2] Group 2: Shareholder Returns - The company adheres to a stable profit distribution policy, having implemented cash dividends for 13 consecutive years [2] Group 3: Information Disclosure - The company has consistently performed well in information disclosure, receiving an A-level rating in the Shenzhen Stock Exchange's evaluation for several years [2] Group 4: Investor Relations - The company actively manages investor relations through various channels, including investor hotlines, interactive platforms, on-site research, and performance briefings, to enhance investor understanding of the company [2]

Investment Rating - The report maintains an "Accumulate" rating for the defense and military industry [6]. Core Insights - The upcoming 20th Central Committee's Fourth Plenary Session will focus on the "14th Five-Year Plan," which is expected to support the modernization of national defense and military by 2035, building on the achievements of the "13th Five-Year Plan" [9][23]. - The J-35 aircraft's production ramp-up is anticipated to boost the traditional domestic demand, with upstream material suppliers already announcing significant contracts that will support future revenue growth [9][23]. - The aerospace engine industry is experiencing sustained high demand, with the completion of price adjustments and inventory reduction, alongside ongoing state-owned enterprise reforms [10][23]. - The commercial aerospace sector is entering a critical development phase, with plans to launch approximately 2,100 satellites by 2025 and significant advancements in satellite manufacturing capabilities [11][23]. - Global military expenditure is expected to reach new highs in 2024, driven by geopolitical tensions, creating opportunities for domestic military trade [12][23]. Summary by Sections Industry Overview - The defense and military industry comprises 144 listed companies with a total market value of 28,244.53 billion and a circulating market value of 24,587.80 billion [3]. Market Performance - The defense and military index fell by 4.70% this week, ranking 23rd among 31 major industries [8][36]. - The current PE (TTM) for the defense and military sector is 73.8 times, with various sub-sectors showing different valuations [8][42]. Key Developments - The report highlights the importance of the upcoming 20th Central Committee's Fourth Plenary Session, which will focus on the "14th Five-Year Plan" and its implications for national defense [9][23]. - The aerospace engine sector is expected to benefit from military trade advancements and the introduction of new engine models, such as the CJ-1000A, which is set to enter commercial operation by 2030 [10][11][23]. - The commercial space sector is projected to see significant growth, with plans for large-scale satellite launches and advancements in satellite manufacturing capabilities [11][35]. Investment Opportunities - The report suggests focusing on companies involved in missile and military electronics, aerospace engines, and military trade, highlighting specific firms such as Zhonghang Chengfei, Zhonghang Shenfei, and Huazhong Technology [19][25][26][27][28].

Market Overview - The aviation equipment sector rose by 0.91% on October 21, with Filihua leading the gains [1] - The Shanghai Composite Index closed at 3916.33, up 1.36%, while the Shenzhen Component Index closed at 13077.32, up 2.06% [1] Stock Performance - Filihua (300395) saw a significant increase of 14.17%, closing at 80.50 with a trading volume of 426,500 shares [1] - Other notable performers included Hangxin Technology (300424) with a 6.02% increase, and Hangyu Technology (688239) with a 4.42% increase [1] - The table below summarizes the performance of key stocks in the aviation equipment sector: | Code | Name | Closing Price | Change (%) | Volume (thousand) | |--------|--------------|---------------|------------|-------------------| | 300395 | Filihua | 80.50 | 14.17 | 426.5 | | 300424 | Hangxin Tech | 17.79 | 6.02 | 248.6 | | 688239 | Hangyu Tech | 43.67 | 4.42 | 48.3 | | 920642 | Tongyi Aerospace | 14.97 | 2.46 | 20.1 | | 002297 | Boyun New Material | 9.00 | 2.39 | 471.7 | | 603261 | *ST Lihang | 21.10 | 2.23 | 12.5 | | 300034 | Steel Research | 16.38 | 2.12 | 120.9 | | 920006 | Shengcao Technology | 27.85 | 1.94 | 11.3 | | 688287 | *ST Guandian | 4.78 | 1.92 | 14.9 | | 002625 | Guangqi Technology | 46.78 | 1.92 | 189.7 | [1] Capital Flow - The aviation equipment sector experienced a net inflow of 601 million yuan from institutional investors, while retail investors saw a net outflow of 454 million yuan [2] - The following table outlines the capital flow for key stocks: | Code | Name | Institutional Net Inflow (yuan) | Institutional Net Ratio | Retail Net Inflow (yuan) | Retail Net Ratio | |--------|--------------|----------------------------------|-------------------------|--------------------------|------------------| | 300395 | Filihua | 439 million | 13.32% | -83.56 million | -10.78% | | 688122 | Western Superconductor | 92.06 million | 7.09% | -36.26 million | -4.30% | | 300424 | Hangxin Tech | 54.02 million | 12.49% | -798,450 | -10.64% | | 600893 | Aero Engine | 47.64 million | 7.85% | 390,730 | -8.50% | | 688237 | Superlative Aerospace | 28.34 million | 18.13% | 530,500 | -21.53% | [3]

Core Viewpoint - The company focuses on the military aviation industry in the domestic market, which is not directly affected by fluctuations in China-U.S. relations or external policy changes [1] Group 1: Business Focus - The company's main business is in the military aviation sector, with a minimal impact from the civil aviation sector related to the U.S., which constitutes a small portion of total revenue [1] - The company has developed and is implementing a systematic, multi-layered response plan to effectively prevent and mitigate various external risks [1] Group 2: Strategic Initiatives - The company emphasizes "self-controllability" as a key principle and aims to flexibly respond to complex situations [1] - Through years of strategic investment in independent innovation and supply chain management, the company ensures stable and sustainable production and operations [1] Group 3: Future Outlook - The company is committed to minimizing the adverse effects of changes in the external environment to achieve high-quality development [1]

格隆汇10月21日丨中航西飞(000768.SZ)在投资者互动平台表示，截止目前，公司没有在波黑设立子公 司。 ...

格隆汇10月21日丨中航西飞(000768.SZ)在投资者互动平台表示，截止目前，公司没有在波黑设立子公 司。 ...

Investment Rating - The report maintains a "Positive" investment rating for the defense and military industry in China [5] Core Viewpoints - The military trade market in China is continuously expanding, with significant developments such as Indonesia's procurement of the J-10 fighter jet, indicating a rapid growth in the military trade market scale [11] - The "Qianfan Constellation" satellite network has resumed operations after a 7-month hiatus, with the recent launch of 18 satellites, suggesting an acceleration in low-orbit satellite deployment [12] - The current market conditions show stabilization in military sector stock prices, with a focus on domestic demand and the upcoming "14th Five-Year Plan" which is expected to clarify new equipment construction plans [16][17] Summary by Sections Investment Suggestions and Targets - The report highlights several investment targets within the military electronics sector, including: - Aerospace Electric (002025, Buy) - Zhonghang Optics (002179, Buy) - Aerospace Electronics (600879, Not Rated) - In the new quality and domain sector, notable mentions include: - Haige Communication (002465, Buy) - New Light Optoelectronics (688011, Increase Holding) - For the engine chain, key targets include: - West Superconducting (688122, Buy) - Huqin Technology (688281, Increase Holding) - In military trade and main equipment, companies like AVIC Shenyang Aircraft (600760, Not Rated) are highlighted [17]