国防军工行业周报（2024年第49周）：中长期基本面确定上行，建议加大军工行业关注度

Investment Rating - The report maintains a positive outlook on the defense and military industry, suggesting an increase in attention towards this sector [1]. Core Insights - The defense and military industry is expected to experience a long-term upward trend due to stable demand and recovery in orders, despite short-term adjustments influenced by market risk preferences [2][3]. - Recent successful launches in commercial space, such as the Wenchang commercial rocket, are anticipated to catalyze further growth in the sector [2]. - The report emphasizes the importance of focusing on two categories of core stocks: elastic varieties and value varieties, highlighting the potential for significant returns [2]. Market Review - Last week, the Shenwan Defense and Military Index rose by 1.99%, while the CSI Military Leaders Index increased by 1.52%. The overall market indices also showed positive movements, with the Shanghai Composite Index up by 1.81% [5][6]. - The report identifies the top five performing stocks in the defense sector, including Xinxing Equipment (up 18.98%) and Hezhong Shizhuang (up 17.97%), while the bottom five included Sichuan Jiuzhou (down 15.45%) and Rongfa Nuclear Power (down 14.09%) [11][12]. Valuation Changes - The current PE-TTM for the defense sector is 69.82, indicating it is in the upper range historically, with specific segments like aerospace and aviation equipment also showing elevated valuations [12][18]. 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 [21][24]. Key Investment Targets - The report suggests focusing on high-end combat capabilities and new types of combat power, with specific stocks recommended for investment, including AVIC Shenyang Aircraft (600316.SH) and AVIC Xi'an Aircraft (600038.SH) [2][30].