国防军工行业2025年度投资策略：主链新一轮景气周期可期，新质新域扩宽成长空间

Investment Rating - The report indicates a positive outlook for the defense and military industry, suggesting a new round of prosperity in the main chain and expanded growth space in new domains [2][9][25]. Core Insights - The military sector's active fund holdings are at a historically low level, with a recovery in the third quarter of 2024, but still showing significant room for improvement compared to previous years [10][11]. - Revenue and profit for the sector declined in the first three quarters of 2024, but some upstream segments showed signs of recovery, indicating long-term demand remains strong [10][11]. - The demand for missiles and long-range firepower is increasing due to modern warfare's precision requirements, with significant budget increases for missile procurement in the U.S. [10][52]. - New technologies and domains are becoming critical in national defense, with high-tech applications driving military advancements and competitive advantages [10][11]. Summary by Sections Valuation - The industry's performance decline has led to a temporary increase in valuation [22]. Holdings - Active fund holdings in the military sector saw a rebound in Q3 2024, with a notable increase in the proportion of holdings in complete assembly and component categories [5][26]. Revenue and Profit Trends - The military sector experienced a year-on-year revenue decline of 9.91% and a net profit drop of 34.19% in the first three quarters of 2024, but some upstream suppliers have returned to growth [10][29]. Cash Flow - The operating cash flow for component-level enterprises showed a net inflow, indicating improved cash flow conditions compared to the previous year [64]. Fixed Assets and Construction - The total assembly level's fixed asset growth rate increased significantly, indicating strong expansion momentum in downstream production [75].