Guotai Junan Securities·2025-05-21 08:50Investment Rating - The report suggests a long-term positive outlook for the military industry, with specific companies recommended for investment, including 中航沈飞, 航天南湖, and 中航西飞, among others [12][9]. Core Viewpoints - The intensification of great power competition is seen as a long-term trend, leading to increased defense spending and a favorable outlook for the military industry. The report emphasizes the need for enhanced national defense capabilities to ensure peace and security [9][3]. - Recent successful satellite launches by China, including the communication technology test satellite and the space computing satellite constellation, highlight advancements in aerospace capabilities [28][11]. - The report notes the U.S. plans to develop the F-55 fighter jet, indicating ongoing military advancements and competition in the aerospace sector [11][38]. Summary by Sections Investment Highlights - Key investment themes include assembly (中航沈飞, 航天南湖, 中航西飞), components (中航光电, 航天电器, 国博电子), subsystems (中航机载, 北方导航), and materials & processing (抚顺特钢, 中航重机, 菲利华, 光威复材, 图南股份, 华秦科技, 铂力特, 西部材料) [12][4]. Market Review - The military industry index declined by 1.61%, underperforming the broader market by 2.37 percentage points during the week of May 11-16, with the Shanghai Composite Index rising by 0.76% and the ChiNext Index by 1.38% [15][16]. - Ground weaponry and aviation sectors performed relatively well despite the overall decline in the military sector [20][22]. Major News in the Military Industry - Domestic news includes the successful launch of the communication technology test satellite and the space computing satellite constellation, showcasing China's advancements in satellite technology [28][29]. - Internationally, the U.S. has authorized a $1.4 billion arms sale to the UAE, including military helicopters and equipment, reflecting ongoing military collaborations [38][39].