国防军工行业投资策略周报：电科系多家公告集团增持，重视需求回暖下三条主线

Investment Rating - The report rates the defense and military industry as "Buy" [2] Core Viewpoints - The report emphasizes the importance of three core lines under the expectation of demand recovery in the sector, driven by recent announcements of share buybacks by several listed companies in the electronics sector [2][10] - It predicts a gradual improvement in market sentiment towards the sector, with expectations for Q3 performance being relatively low, and a clearer outlook for equipment procurement and delivery in Q4 [10] - The report highlights the potential for increased attention on the military sector due to attributes such as "technology," "new quality," and "state-owned enterprise reform" [10] Summary by Sections Weekly Viewpoints - The report identifies three main lines of focus: large aircraft and civil ships with significant growth potential, technology-driven chips and new materials, and the recovery of core businesses alongside satellite internet and low-altitude economy growth [10] - It anticipates continued high demand for equipment procurement and military trade exports, particularly in sectors like shipbuilding and satellite internet [10] Market Performance - The report notes that the defense sector's performance is expected to improve, with a focus on long-term growth opportunities and the scarcity of supply and market structure [11] Company Analysis - Specific companies highlighted for their potential include: - Aviation Power (航发动力) with a projected revenue of CNY 497.62 billion in 2024 and a dynamic PE of approximately 68X [12] - China Power (中国动力) benefiting from a recovery in the shipbuilding sector, with expected net profits of CNY 11.88 billion in 2024 [12] - AVIC Heavy Machinery (中航重机) with a projected net profit of CNY 15.76 billion in 2024 [13] - Ruichuang Micro-Nano (睿创微纳) expected to achieve a net profit of CNY 7.51 billion in 2024 [14] Investment Recommendations - The report suggests a low valuation strategy focusing on companies with strong recovery potential in the military sector, including Aviation Power, AVIC Heavy Machinery, and China Power [11] - It emphasizes the importance of long-term growth characteristics and the scarcity of supply in the investment decision-making process [11]