China Post Securities·2025-03-31 09:55Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Viewpoints - As of March 30, among the 120 tracked defense industry listed companies, 30 have disclosed their 2024 annual reports, with 15 companies showing year-on-year growth in performance, and 6 companies reporting a net profit growth rate exceeding 20% [4][12] - The first batch of operational certificates for manned civil unmanned aerial vehicles has been issued, marking the beginning of the "manned era" in China's low-altitude economy [15] - The military industry is expected to see an inflection point in orders as the "Centenary of the Army Building Goals" enters its second half, with new technologies and products offering greater market flexibility [16] Summary by Sections 1. Industry Overview - The closing index is at 1475.47, with a 52-week high of 1712.48 and a low of 1113.62 [2] 2. Company Performance - Notable companies with strong performance include: - China Shipbuilding Defense: Revenue of 194.02 billion, YoY growth of 20.17%, net profit of 3.77 billion, YoY growth of 684.86% [13] - Aerospace Intelligence: Revenue of 77.81 billion, YoY growth of 32.78%, net profit of 7.92 billion, YoY growth of 87.02% [13] - National Science Military Industry: Revenue of 12.04 billion, YoY growth of 15.78%, net profit of 1.99 billion, YoY growth of 41.25% [13] - Companies have set ambitious revenue targets for 2025, with China Aviation High-Tech aiming for a 14% increase and China Shipbuilding Defense targeting a 3% increase [14] 3. Investment Recommendations - Two main investment themes are suggested: 1. Aerospace and "gap-filling" focus: Companies include Feiliwa, Fenghuo Electronics, and others [17] 2. New technologies, products, and markets with greater flexibility: Companies include Aerospace Intelligence, National Science Military Industry, and others [17] 4. Market Performance - The military sector indices have shown a decline, with the China Securities Military Index down 3.42% and the Shenwan Military Index down 3.98% [18] - The top-performing stocks in the military sector this week include Aopu Optoelectronics (+17.38%) and Nairui Radar (+11.02%) [20] 5. Valuation Levels - As of March 28, 2025, the China Securities Military Index stands at 10635.56, with a PE-TTM valuation of 75.70 and a PB valuation of 3.38, both at historical mid-levels [22]