军工行业周报：预计关联交易额彰显行业信心

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [4]. Core Viewpoints - The military industry is expected to see a significant increase in related transactions, reflecting confidence in the sector. Major contracts disclosed by military companies validate the demand and production requirements, indicating that order fulfillment is merely a matter of time [1][2]. - The military industry is characterized by high certainty in development over the next few years, driven by the five-year plan and the 2027 defense construction goals [1]. Summary by Sections 1. Industry Performance - The defense and military index increased by 2.87% this week, ranking 23rd among 31 industries. The overall market sentiment is improving, with military companies disclosing significant contracts [1][40]. 2. Expected Related Transactions - Military companies are forecasting increased related transactions for 2025 compared to 2024, indicating confidence in downstream demand. For instance, China Aviation Electric Measurement expects its related procurement and sales to rise significantly, with increases of 30097% and 851% respectively compared to 2024 [2][3]. 3. Investment Strategy - The report emphasizes that the military industry is entering a new growth phase, with a focus on innovation and efficiency. The upcoming "15th Five-Year Plan" is expected to drive further development in various sectors, including low-cost, unmanned, and intelligent systems [14][15]. 4. Market Trends - The military industry is anticipated to experience a rational wave of mergers and acquisitions, driven by the need for industry chain extension and technological innovation. The market is also expected to see a focus on value management and long-term capital support [22][24][26]. 5. Key Investment Opportunities - The report suggests focusing on sectors such as military aircraft, low-altitude economy, aerospace equipment, and military intelligence. Specific companies mentioned include Aviation Power, Sichuan Jiuzhou, and Aerospace Electronic [29][30][31].