领涨！这一行业，迎新一轮扩张周期！

Core Viewpoint - The military industry sector, particularly the aerospace segment, is experiencing a rebound and is poised for unprecedented development opportunities due to the evolving global economic landscape [1][6]. Industry Performance - On May 22, the military sector rebounded, with the aerospace segment showing significant activity. The Guozheng Aerospace Index rose by 0.15%, with notable gains from companies like Sihua Electronics and Hitec High-tech [2]. - Several aerospace-themed ETFs also saw substantial increases, with the Huaxia Aerospace ETF rising over 0.5% [4]. Market Opportunities - The aerospace industry in China is projected to exceed a market size of 1.9 trillion yuan in 2023, with a compound annual growth rate of 4.93% over five years. It is estimated that the market will surpass 2 trillion yuan in 2024 [6]. - The defense budget in China is expected to reach 1.81 trillion yuan by 2025, maintaining a growth rate of 7.2% for three consecutive years, with aerospace equipment being a key focus area [6]. Growth Engines - Key growth areas for the aerospace industry include commercial aerospace, commercial aircraft, and low-altitude economy. The commercial aerospace market is expected to exceed 2.5 trillion yuan by 2025 [7]. - The C919 large passenger aircraft has accumulated 1,495 orders, and the low-altitude economy market is projected to reach 670 billion yuan by 2024, with expectations to surpass 1 trillion yuan by 2026 [7]. Technological Advancements - The demand for aerospace technology is anticipated to rise with ongoing major projects like manned spaceflight and deep space exploration. The commercial aerospace sector is also gaining momentum, with increasing participation from private enterprises [8]. - The aerospace industry is characterized by high barriers to entry and significant growth potential, with state-owned enterprises enhancing asset securitization and private companies focusing on flexible manufacturing and commercial aerospace [8]. Investment Outlook - The aerospace sector is expected to benefit from technological advancements and market expansion, with a focus on leading companies that have strong technological moats and clear capacity releases [8].