国防军工行业周报（2024年第53周）：军工关注持续提升，加大关注度布局2025年

Investment Rating - The industry investment rating is "Overweight," indicating that the defense and military industry is expected to outperform the overall market [50]. Core Insights - The defense and military industry is experiencing a continuous increase in attention, with expectations for significant growth in the coming years, particularly as the industry approaches the final stages of order fulfillment during the 14th Five-Year Plan and enters the 15th Five-Year Plan [3][17]. - Recent announcements of large contracts, such as those from Guangwei Composite, suggest that orders within the industry are beginning to materialize, which is expected to lead to a bullish market phase once main unit orders are confirmed [3][17]. - The industry is characterized by strong demand and investment, with expectations for steady growth in the coming years, as production rhythms are being restored across the supply chain [3][11]. Summary by Sections Market Review - Last week, the Shenwan Defense and Military Index rose by 0.33%, while the CSI Military Leader Index increased by 0.5%. In comparison, the Shanghai Composite Index rose by 0.95%, and the CSI 300 Index increased by 1.36% [22]. - The defense and military sector's performance ranked 9th among 31 Shenwan primary industry sectors [22]. Stock Performance - The top five performing stocks in the defense and military sector last week were: - Aero Engine Corporation (17.41%) - Baosheng Co. (16.7%) - Jinxin Technology (13.68%) - China Shipbuilding Technology (8.5%) - Zhongjian Technology (8.13%) [10][22]. - Conversely, the bottom five performing stocks were: - Xinyan Co. (-17.26%) - Chunxing Precision (-16.76%) - Xuanji Information (-15.38%) - Aowei Communication (-14.86%) - Phoenix Optical (-13.15%) [10][22]. Valuation Changes - The current PE-TTM for the Shenwan Military Industry Index is 70.12, which is in the upper range historically, indicating a relatively high valuation compared to past years [11][26]. Foreign Investment Changes - As of August 16, foreign ownership in the military sector was 2.56%, showing a long-term upward trend in foreign investment [14][39]. Key Investment Themes - The report suggests focusing on two main categories of stocks: 1. Elastic varieties, such as consumable weapons and military electronics, which are expected to benefit from market recovery. 2. Value varieties, including main manufacturers with stable earnings and strong price control capabilities [3][17]. Recommended Stocks - Key stocks to watch include: - High-end combat capabilities: AVIC Shenyang Aircraft, AVIC Xi'an Aircraft, Aero Engine Corporation, AVIC Optoelectronics, and others. - New quality combat capabilities: Aerospace Electronics, Huayin Technology, and others [3][17].