国防军工行业报告：兵器装备集团筹划重组，复盘南北船合并

Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Viewpoints - The China Weaponry Equipment Group is planning a restructuring, reminiscent of the North-South Shipbuilding merger, which may lead to changes in the controlling shareholder of listed companies under it, but not in the actual controller [4][12] - The military industry is expected to see an inflection point in orders as the "Centenary of the Army Building" goal enters its second half, with new technologies and products offering greater market elasticity [6][16] Summary by Sections Investment Highlights - The restructuring of the Weaponry Equipment Group may accelerate the integration of military groups, suggesting a focus on companies like Weaponry Equipment, Weaponry Industry, Aerospace Science and Technology, and Aerospace Science and Industry [5][15] - Two main investment themes are suggested: 1) Aerospace and "filling gaps" focusing on companies such as Feilihua, Fenghuo Electronics, and others [6][16] 2) New technologies, products, and markets with greater elasticity, including companies like Aerospace Intelligence, Guorui Technology, and others [7][16] Market Overview - The military sector indices showed strong performance, with the China Military Index rising by 4.99% and the Shenwan Military Index by 5.10%, outperforming the broader market indices [17] - The top ten performing stocks in the military sector included Xinyan Co. (+27.75%), Leike Defense (+18.75%), and others, indicating robust market activity [21][22] Valuation Levels - As of February 7, 2025, the China Military Index stood at 10,512.67, with a PE-TTM valuation of 75.51 and a PB valuation of 3.17, both at historical mid-levels [26] - Historical data shows that 68.77% of the time since January 1, 2014, the PE-TTM valuation has been lower than the current level [26] Data Tracking - The report tracks various data points, including private placements and stock incentive plans for military companies, indicating ongoing financial activities within the sector [29][31] - The military trade market is highlighted, with Turkey's defense exports projected to reach $7.1 billion in 2024, reflecting the expanding global influence of its defense manufacturing [37]