国防军工行业报告：我国成功发射卫星互联网低轨卫星，C919承运旅客突破100万人次

Investment Rating - The industry investment rating is "Outperform the market" [22] Core Views - The defense industry has experienced rapid growth from 2020 to 2022, but in 2023, performance disparities among sub-sectors have become significant, leading to increased structural differentiation. The industry is expected to enter a phase of high-quality development. With the continuous advancement of equipment technology, new technologies and products are emerging, creating numerous investment opportunities in new domains and qualitative combat fields. Additionally, as China increasingly takes center stage on the world stage, military trade exports are expected to become a new growth point for the defense sector. Two main investment themes are suggested: military new trends and military technology, products, and markets [5][60]. Summary by Sections 1. Core Insights - On December 16, 2024, China successfully launched the low-orbit satellite internet group, marking a significant step in satellite internet construction. The "Thousand Sails Constellation" aims to deploy over 15,000 satellites, with the first phase of 648 satellites expected to be completed by 2025 [10][32]. - The C919 aircraft has carried over 1 million passengers since its commercial operation began on May 28, 2023. The production and delivery pace of the C919 is expected to accelerate, with plans to reach an annual production capacity of 150 aircraft within five years [11][25][34]. 2. Market Overview - The defense sector index has seen a decline of 0.79% this week, with the military sector ranking 7th among 31 primary industries in terms of performance [61]. - The top ten performing stocks in the military sector this week include West Materials (+16.91%), AVIC Electromechanical (+8.07%), and Jinxin Nuo (+7.18%) [62]. 3. Valuation Levels - As of December 20, 2024, the military sector's PE-TTM valuation is 73.07, and the PB valuation is 3.06. These valuations are at historical mid-levels, with 65.07% of the time since January 1, 2014, the PE-TTM valuation has been lower than the current level [19][63]. 4. Investment Recommendations - The report suggests focusing on traditional aerospace sectors with sustainable growth and above-average growth rates, with relevant stocks including AVIC Shenyang Aircraft, Steel Research, and others [26][35]. - For the new military trends, it is recommended to pay attention to new technologies, products, and markets, with relevant stocks including Guorui Technology, Fenghuo Electronics, and others [15][60].