军工行业周报：全球地缘局势紧张，我军开展多军兵种合成训练

Investment Rating - The report maintains a "Buy" rating for the military industry [1] Core Views - The military industry is currently at a turning point, with expectations for an upward trend in 2025 as disruptive factors diminish. Key variables to observe include new orders for production models and the progress of new equipment transitioning to mass production [1] - The military sector is experiencing a recovery, with marginal improvements noted in the fourth quarter. Several representative companies in the aviation supply chain have disclosed new orders, and military enterprises are accelerating task completion [1] - The global geopolitical situation remains tense, necessitating strong national defense, which supports steady growth in military spending in China. The military trade market is expected to enter a new development phase, with China poised to gain more market share due to its high-performance and cost-effective new equipment [1] Summary by Sections 1. Core Insights of the Week - Recent multi-service joint training exercises have been conducted, emphasizing modular grouping and information network support as new trends [16] - The global geopolitical situation is tense, with ongoing conflicts highlighting the necessity for strong national defense [21] 2. Market Performance Review - The military index fell by 0.66% this week, outperforming the ChiNext index and the CSI 300 index, but underperforming the Shanghai Composite index. Year-to-date, the military index has risen by 10.78% [26][29] - The military sector's PE ratio is 100.16, which is at the 56.2% percentile of its historical range over the past five years, indicating a reasonable valuation level [32][34] 3. Individual Stock Performance - The top five gaining stocks this week include: Zhonghaida (+19.6%), Hezhong Sizhhuang (+12.8%), Shanghai Huanxun (+12.5%), Inner Mongolia Yijian (+11.2%), and Aowei Communication (+10.6%) [36] - The top five losing stocks include: Zhenxin Technology (-7.9%), Zhongbing Hongjian (-7.8%), Tianhe Defense (-7.3%), Aopu Optoelectronics (-5.9%), and Changcheng Military Industry (-4.7%) [36] 4. Investment Recommendations - Focus on structural opportunities within the main battle equipment sector, particularly consumable munitions and platform-type equipment, especially new aircraft and their associated supply chains [2] - Emphasize the military's strong technological attributes and the potential for new production capabilities, particularly in emerging industries such as satellite internet and low-altitude economy [2]