军工行业双周报：AI+国防，智胜未来的关键引擎

Investment Rating - The report maintains a "Recommended" investment rating for the defense and military industry [1]. Core Insights - The role of artificial intelligence (AI) in modern warfare is increasingly significant, with applications observed in strategic deception, cognitive confrontation, distributed precision strikes, and drone reconnaissance [1]. - The global military AI market is projected to grow from USD 9.2 billion in 2023 to USD 38.8 billion by 2028, with a CAGR of 33.3% [11][13]. - The integration of AI in China's military sector is transitioning from isolated technological breakthroughs to comprehensive systemic applications, particularly in unmanned combat systems [1][6]. Summary by Sections AI + Defense: The Core Engine for Future Success - AI's integration into military applications is expected to enhance existing equipment, develop unmanned systems, and improve human-machine collaboration in combat scenarios [9][11]. Military State-Owned Enterprises (SOEs) Integration - Ongoing restructuring among military SOEs is anticipated, with potential mergers and asset reconfigurations that could benefit listed companies under these groups [15][19]. Military Market Performance - The defense and military index has shown a weekly increase of 5.17%, outperforming other sectors [18][19]. - The top-performing stocks in the military sector include Hangjin Technology (+33.11%) and Xice Testing (+29.93%) [21]. Industry Dynamics - The report highlights the increasing confidence of military companies, as evidenced by stock buybacks totaling approximately CNY 3.655 billion since January 2024 [39]. Investment Recommendations - The report suggests focusing on the "Two Sessions Effect," indicating a high probability of short-term gains in the military sector [1]. - Specific companies to watch include Huaru Technology, Guankang Technology, and Ziguang Guowei in the AI + military space [11].