银河证券：军工板块迎投资机遇

Core Viewpoint - China Galaxy Securities anticipates an improvement in the military industry sector's performance in the second quarter of 2025, driven by increased orders and favorable financial results from mid to upstream companies [1] Short-term Outlook - The second quarter earnings season is expected to show improvement due to the release of first-quarter orders and high inventory levels, which may enhance the performance of certain mid to upstream enterprises, gradually benefiting downstream companies [1] - Orders for military components are projected to reverse the downward trend by June, with order growth expected to turn positive in the second half of the year as secondary demand is released [1] Mid-term Outlook - The year 2025 marks the 80th anniversary of the victory in the Anti-Japanese War and the World Anti-Fascist War, which is expected to bring more industry catalysts in the third quarter, alongside positive earnings expectations from some companies in the second quarter, creating structural investment opportunities [1] Long-term Outlook - The ongoing India-Pakistan conflict is enhancing the visibility of China's military industry, leading to a significant moment for military trade, with domestic demand and military trade resonating to open up demand for military equipment [1] - The centenary of the military establishment in 2027 is approaching, suggesting a sustained period of high prosperity for the industry over the next three years [1]