军事仿真：奇花初胎，矞矞皇皇

Investment Rating - The report maintains an "Overweight" investment rating for the military simulation industry [2]. Core Insights - The military simulation industry in China is transitioning from a focus on hard power to soft power, with significant growth potential as demand increases and technology develops [1][5]. - Military simulation is recognized as a key technology that enhances military training, weapon development, and operational planning, thus becoming essential in modern defense strategies [14][18]. - The global military simulation market is projected to reach $15.007 billion by 2025, with China's market potential estimated at approximately 30.01 billion USD (210.10 billion RMB) [7]. Summary by Sections Military Simulation Overview - Military simulation encompasses weapon technology simulation, weapon system simulation, and combat simulation, playing a crucial role in military training and equipment development [14][15]. - The industry is characterized by high barriers to entry and significant economic, military, and social value [20][34]. Current Status of Military Simulation - Internationally, military simulation has been widely adopted, with the U.S. leading in its application for operational planning and training [23][24]. - Domestically, China's military simulation technology is rapidly advancing, with increasing penetration rates and recognition of its importance in defense modernization [27][28]. Development Trends - The military simulation technology is evolving towards digitalization, efficiency, intelligence, networking, and service-oriented models [31]. - Embedded military simulation systems are becoming more relevant, addressing the complexities of modern equipment training and extending the lifespan of military assets [33]. Industry Characteristics - The military simulation industry spans the entire military industrial chain, from top-level design to training applications, indicating high market barriers and profitability [34]. - The competitive landscape includes both state-owned enterprises and private companies, with a focus on specialized capabilities [35][36]. Investment Logic - The report suggests focusing on companies with core military simulation technologies, as they are expected to benefit from the increasing military expenditure and structural changes in defense [10][12].