国防军工行业投资策略周报：体制改革推动高质量发展，船舶和航空出海景气度抬升

Investment Rating - The industry rating is "Buy" [4] Core Insights - The deepening reform of the national defense science and technology industry and the improvement of the weapon procurement system are expected to support high-quality development in the industry, with a positive outlook for medium to long-term improvement trends and increased prosperity [2][14] - The shipbuilding sector is experiencing sustained growth, with the National Development and Reform Commission proposing support for the scrapping and updating of old operating vessels, and Chinese shipyards expected to account for over 60% of global new ship orders in the first half of 2024 [2][14] - The aerospace sector, including large aircraft, satellite internet, and military trade, continues to show strong growth, with significant increases in orders and profits reported by major companies [2][14] - Looking ahead to the second half of 2024, high prosperity in new productivity sectors such as aerospace and large aircraft is expected to continue, with a favorable outlook for equipment procurement and military trade exports [2][14] Summary by Sections Section 1: Recent Developments - The report highlights the importance of institutional optimization for the high-quality development of the defense industry, emphasizing the need for a modern management system for weaponry and equipment [2][14] - The shipbuilding industry is supported by government measures aimed at promoting the scrapping of high-emission vessels and the development of clean energy ships [2][14] Section 2: Market Performance - The report notes that the aerospace sector is seeing a rise in demand, with significant order growth reported by GE Aviation and the upcoming delivery of the first C919 aircraft by China Southern Airlines [2][14] Section 3: Investment Recommendations - The report suggests a low-valuation strategy with a focus on military stocks, recommending companies such as Aero Engine Corporation, AVIC Heavy Machinery, and others for their growth potential and market positioning [3][15] - Specific companies are highlighted for their strong growth prospects, including Guangwei Composites, China Power, and others, with expected increases in net profits and favorable valuations [15][19][20]