军工本周观点：全面加速完成十四五任务

Investment Rating - The report maintains an "Outperform" rating for the defense and military industry [5]. Core Insights - The report emphasizes the accelerated completion of the "14th Five-Year Plan" for military construction, highlighting the importance of achieving the military's centenary goals and the overall modernization of the nation [3][44]. - The macroeconomic context reiterates the significance of completing the "14th Five-Year Plan," with a strong focus on the military industry and the commitment to achieving set goals [3][44]. - The report indicates a strong recovery in demand for the military industry expected by 2025, suggesting a positive outlook for future funding and market confidence [3][45]. Summary by Sections Market Performance - The Shenwan Military Index (801740) increased by 6.96% during the week, outperforming the CSI 300 Index, which rose by 1.39%, resulting in a relative excess return of 5.58 percentage points [3][10]. - The military index has shown a 19.88% increase since May 2024, compared to a 9.42% increase in the CSI 300 Index, indicating a strong performance relative to other sectors [10][18]. Funding and Valuation - There was a significant increase in financing purchases this week, reflecting growing market confidence in the military sector [3][45]. - As of March 7, the TTM price-to-earnings ratio for the Shenwan Military Index stands at 62.52, indicating a high valuation level but also suggesting strong potential for recovery in the industry by 2025 [4][45]. Investment Recommendations - The report suggests focusing on two main investment themes: traditional main battle equipment and high-elasticity sectors that will cross into the "15th Five-Year Plan" period [4][45]. - Specific companies to watch include: - Traditional Equipment: AVIC Shenyang Aircraft, AVIC Xi'an Aircraft, and others [4][45]. - High-Elasticity Sectors: Commercial engines, materials, and low-cost drones [4][49]. Sector Dynamics - The report notes that various sub-sectors within the military industry, such as aerospace and commercial space, have shown strong performance, particularly driven by government policy support [10][22]. - The commercial aerospace sector has been highlighted as a key area of growth, benefiting from recent government initiatives [10][22].