Zheng Quan Shi Bao Wang·2025-11-19 10:23Core Viewpoint - The military industry stocks have experienced a significant surge, driven by recent advancements in China's military capabilities and a shift in the industry's growth model towards a more diversified and sustainable approach [1][2][3]. Group 1: Stock Performance - Military ETFs saw a sharp increase, with stocks like Jianglong Shipbuilding, Yaguang Technology, and China Shipbuilding Defense hitting the daily limit, while Tianhai Defense surged over 19% [1][2]. - By the end of the trading session, several companies, including Jianglong Shipbuilding and Yaguang Technology, recorded gains of over 10%, indicating strong market interest in the military sector [2]. Group 2: Industry Growth and Financial Performance - According to data from Guoxin Securities, state-owned defense enterprises reported a 21.19% year-on-year increase in revenue and an 8.93% rise in net profit for the first three quarters of 2025, with these companies accounting for over 70% of the industry [2]. - The military industry is transitioning from a reliance on domestic demand to a new growth model characterized by "internal demand foundation, foreign trade expansion, and civilian support," enhancing the industry's overall growth potential [2][4]. Group 3: Recent Developments and Innovations - The recent commissioning of the Fujian aircraft carrier, which is the world's first conventional-powered aircraft carrier utilizing electromagnetic catapult technology, marks a significant technological advancement for China's naval capabilities [3]. - The introduction of the Attack-11 stealth drone and the successful sea trials of the Sichuan ship highlight the advancements in China's air and naval forces, indicating a shift towards integrated manned-unmanned operations [3]. Group 4: Investment Focus Areas - East Wu Securities identifies four key investment directions within the military sector: main battle equipment supply chains, advanced combat capabilities, military-civilian integration technologies, and asset securitization opportunities [4]. - The focus on companies with assembly capabilities, pricing power, and overseas delivery experience is expected to yield significant benefits as orders increase [4].