“联合利剑-2024B”圆满完成，中泰举行“突击-2024”训练

Investment Rating - The report maintains an "Overweight" rating for the military industry [2][4]. Core Viewpoints - The military sector has shown significant growth, with the defense industry index rising by 9.01%, outperforming the broader market by 7.65 percentage points [4][10]. - The intensification of great power competition is viewed as a long-term trend, leading to increased defense spending and a positive outlook for the military industry [4][7]. Summary by Sections Industry Performance - The military industry index increased by 9.01% from October 11 to October 18, 2024, while the Shanghai Composite Index rose by 1.36% and the ChiNext Index by 4.49% [10][11]. - The China Securities National Security Index performed the best, with a rise of 9.56% [12][13]. Major News in the Military Industry - The Eastern Theater Command successfully completed the "Joint Sword-2024B" exercise, which involved multiple military branches and focused on various combat readiness scenarios [19]. - The military collaboration between China and Thailand, marked by the "Strike-2024" joint training, aims to enhance joint operational capabilities [4][19]. Investment Focus - Key investment areas include: 1. Assembly: AVIC Shenyang Aircraft Company 2. Components: AVIC Optoelectronics, Aerospace Electrical [8] 3. Subsystems: AVIC Avionics, North Navigation 4. Materials and Processing: Fushun Special Steel, AVIC Heavy Machinery [8][9]. Notable Stocks - Stocks with an "Overweight" rating include: - AVIC Shenyang Aircraft Company (stock code: 600760.SH) with a target price of 47.16 CNY and a market cap of 1299.59 billion CNY [9]. - AVIC Optoelectronics (stock code: 002179.SZ) with a target price of 43.88 CNY [9]. - North Navigation (stock code: 600435.SH) with a target price of 10.99 CNY [9].