Seek .(US:SKLTY) Mei Ri Jing Ji Xin Wen·2025-05-09 03:28Core Viewpoint - The military industry sector is currently attracting market attention and is expected to experience a recovery in performance due to improving demand and order fulfillment [1][4]. Group 1: Industry Performance - The military industry has shown significant signs of performance bottoming out, with a notable increase in advance payments and contract liabilities, reaching 177.2 billion yuan by the end of Q1 2025, a 5.36% increase from the beginning of the year [3]. - The revenue growth rates for the military sector from 2021 to Q1 2025 are 18.3%, 10.3%, 4.5%, -1.7%, and -3%, while the net profit growth rates are 28.2%, 7.5%, -8.8%, -41%, and -24.6% respectively, indicating a narrowing decline in profits in Q1 2025 [3]. Group 2: Market Dynamics - The military sector is expected to benefit from a dual-cycle economic environment driven by domestic demand growth and military trade needs, leading to a favorable outlook for the industry [1][5]. - The military ETF (512660) is currently the largest and most liquid in the sector, with a market size of 14.28 billion yuan and an average daily trading volume of 650 million yuan over the past month [2]. Group 3: Future Outlook - The military sector is anticipated to see a continuous recovery in performance as orders are fulfilled, supported by active themes such as low-altitude economy, commercial aerospace, deep-sea technology, and military intelligence [4][5]. - The combination of active themes and improving performance is expected to drive the overall market for the military sector in the coming period, supported by strategic initiatives like the "14th Five-Year Plan" and "Centenary Goals" [5].