国防军工行业周报（2024年第47周）：短期行情调整分化整体趋势确定上行

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry, indicating a positive outlook compared to the overall market performance [34]. Core Insights - The recent market adjustment has led to a significant decline in the defense and military sector, with the Shenwan Defense and Military Index dropping by 8.79%, underperforming compared to major indices [4][5]. - Despite short-term volatility, the long-term demand for military orders remains strong, supported by external trade factors and a recovering supply chain [4][9]. - The report highlights the acceleration of domestic reusable launch vehicle technology, which is expected to reduce costs and expedite satellite constellation deployment [4][9]. - The report suggests increasing focus on two categories of core stocks: elastic varieties (consumable weapons and military electronics) and value varieties (main manufacturers with stable growth) [4][9]. Summary by Sections Market Review - The Shenwan Defense and Military Index fell by 8.79%, while the CSI Military Leaders Index decreased by 9.72%, indicating a significant underperformance relative to the broader market indices [4][5]. - The report identifies the top five performing stocks in the sector, including Aerospace Engineering (up 14.79%) and Zhenxin Technology (up 7.32%), while the worst performers included Morningstar Aviation (down 19.95%) and AVIC Shenyang Aircraft (down 17.39%) [4][8]. Valuation Changes - The current PE-TTM for the defense sector is 70.42, placing it in the upper range historically, indicating a relatively high valuation compared to past performance [9]. Foreign Investment Trends - As of August 16, foreign ownership in the military sector remains stable at 2.56%, with a long-term upward trend observed in foreign investment [17][20]. Key Valuation Changes - The report provides a detailed valuation table for key stocks in the defense sector, highlighting their market capitalization and projected earnings [23].