GRANDWALL(SH:603897) Xin Lang Ji Jin·2025-09-09 03:39Core Viewpoint - The military industry has been one of the hottest market themes since April, with the high-end equipment sub-index rising by 25.74% as of August 31, compared to a 10.09% increase in the Shanghai Composite Index. Despite a recent cooling in interest, institutions remain optimistic about the long-term performance of the military sector, anticipating a growth cycle driven by "intelligent and unmanned" developments during the 14th Five-Year Plan [1] Group 1: Military Industry Outlook - The military industry is expected to enter a new high prosperity cycle, supported by a 2025 defense budget of 1.7847 trillion yuan, reflecting a 7.2% year-on-year increase, with equipment expenditure accounting for over 40% [1] - Global military spending is projected to reach $2.68 trillion in 2024, marking ten consecutive years of growth, with Chinese weaponry gaining recognition and potential for expanded export [1] - New sectors such as low-altitude economy and aerospace are emerging as a second growth curve for the military industry, with the low-altitude economy market expected to exceed 3.5 trillion yuan by 2025 [1] Group 2: Investment Opportunities - The newly launched Invesco Great Wall High-End Equipment Stock Fund focuses on domestic military needs, military trade, overseas aviation supply chains, and military AI investment opportunities, with a positive outlook for the second half of 2025 and the 14th Five-Year Plan [1] - The fund's performance benchmark is a combination of the CSI High-End Equipment Sub-Index (80%), the CSI Hong Kong Stock Connect Composite Index (5%), and the China Bond New Comprehensive Price Index (15%) [1] - The fund employs a floating fee rate mechanism linked to performance, enhancing alignment between fund managers and investors, which may improve the long-term holding experience for investors [2]