军工行业周报：东部战区位台岛周边开展“联合利剑-2024B”演习

Investment Rating - The industry investment rating is "Positive" with expectations of overall returns exceeding the CSI 300 Index by more than 5% in the next six months [36]. Core Viewpoints - The military industry sector is currently at a historically low valuation level, highlighting long-term investment value. Given the complex and changing international landscape, demand for military products is still in its early stages of explosion. A new round of industry prosperity cycle is anticipated, with significant growth potential for leading companies across the supply chain. In recent years, China's defense spending growth rate has consistently outpaced GDP growth. There remains substantial room for growth in defense spending, which is expected to continue exceeding GDP growth in the long term. As military product orders gradually normalize and are released, the industry is likely to experience performance improvement and valuation enhancement, referred to as the "Davis Double Play." It is recommended to focus on leading companies in niche areas with favorable competitive landscapes and high technological barriers [4][8]. Summary by Sections Industry News - On October 14, the Eastern Theater Command of the People's Liberation Army conducted the "Joint Sword-2024B" exercise around Taiwan, involving multiple military branches to test joint operational capabilities [3][13]. - A significant directive was issued by Xi Jinping regarding military theory modernization, emphasizing its importance in national defense and military modernization [15]. - The successful launch of the second batch of "Qianfan Constellation" satellites on October 15 enhances China's satellite communication capabilities [16]. - The China Coast Guard completed the "Pacific Patrol-2024" joint exercise with Russia, reinforcing bilateral cooperation [17]. Company Tracking - Guobo Electronics plans to increase its shareholding by investing between 400 million to 700 million RMB [20]. - AVIC High-Tech reported a revenue increase of 5.48% year-on-year for the first three quarters [21]. - Tian'ao Electronics anticipates a net profit decline of 29.64% to 33.90% due to external market pressures [22]. - Tuanan Co. achieved a slight revenue growth of 1.33% year-on-year [23]. - Lei Dian Micro Power reported a significant revenue increase of 61.61% year-on-year [30].