军工行业周报：地方出台产业政策，低空、民航迎来利好

Investment Rating - The report maintains an "Overweight" rating for the military industry [1]. Core Insights - The military sector is experiencing growth, with the U.S. planning to deploy F-35C in Japan. The defense industry index rose by 2.98%, outperforming the market by 2.60 percentage points [2][5]. - Local governments are introducing industrial policies that favor low-altitude and civil aviation sectors, indicating a positive outlook for the industry [5]. - The ongoing geopolitical tensions suggest a long-term positive trend for the military industry, with increased defense spending anticipated [5]. Summary by Sections 1. Core Viewpoints - Local policies are beneficial for the low-altitude and civil aviation sectors, with Shanghai aiming to enhance its civil aircraft production capacity significantly by 2026, targeting an investment of over 70 billion yuan and a total industry scale of around 80 billion yuan [5][19]. - Shandong province has also introduced a plan to innovate and apply general aviation equipment, aiming for a total industry scale exceeding 30 billion yuan by 2027 [5][19]. - The report emphasizes the need for advanced military equipment and communication systems to ensure modern warfare success, recommending a focus on aerospace and satellite internet sectors [5]. 2. Market Review - The military sector index increased by 2.98%, outperforming the Shanghai Composite Index, which rose by 0.37% [9][10]. - The aerospace military index performed the best among various military indices, rising by 4.63% [11]. 3. Major News in the Military Industry Domestic News - The Shanghai government has issued policies to support the development of the civil aircraft industry, aiming to create a world-class aviation industry cluster [19]. - The Chinese Navy's hospital ship "Peace Ark" has arrived in Tanzania for a goodwill mission [20]. International News - The U.S. Air Force plans to select a developer for its sixth-generation fighter jet by the end of 2024, with potential candidates being Lockheed Martin or Boeing [23]. - The U.S. Navy is facing new threats from anti-ship ballistic missiles, highlighting the evolving nature of military challenges [25]. 4. Key Listed Companies - Investment focus includes major players in various segments: - Assembly: AVIC Shenyang Aircraft (600760.SH) - Components: AVIC Optoelectronics (002179.SZ), Aerospace Electrical (002025.SZ) - Subsystems: AVIC Aircraft (600372.SH), North Navigation (600435.SH) - Materials and Processing: Fushun Special Steel (600399.SH), AVIC Heavy Machinery (600765.SH) [6][8].