火炸药及弹药安全生产：疾起而行

Investment Rating - The report maintains a "Positive" investment rating for the aerospace and defense industry [9] Core Insights - The global ammunition production cycle has entered a new phase following the Russia-Ukraine conflict, highlighting the critical role of explosives in the ammunition supply chain. The U.S. and Europe are facing shortages and are investing heavily to increase explosive production capacity [2][5][6] - China's explosive and ammunition safety production is in the early stages of a growth cycle, with increasing capital expenditures from production companies leading to significant order growth for equipment manufacturers [2][7] Summary by Sections Ammunition Production Cycle - The Russia-Ukraine conflict has revealed the high consumption rates of ammunition, with Russia consuming over 10 million artillery shells and 7,400 missiles by the end of 2023. This has prompted a global expansion in ammunition production, with Russia's capacity expected to reach 4.5 million rounds by 2024, an increase of 11 times compared to pre-war levels [5][19][28] - The U.S. Army plans to invest over $18 billion from FY2024 to FY2038 to modernize ammunition production facilities, aiming to increase the production of 155mm ammunition to 102,000 rounds per month by the end of 2025 [5][31][34] Explosive Production Challenges - The production of explosives is a bottleneck in the ammunition supply chain due to its complex and hazardous manufacturing processes. The U.S. and Europe are currently facing shortages in explosives, which is hindering their ability to scale up ammunition production [6][38][49] - Automation and modernization of explosive production processes are essential for improving safety and efficiency. The report highlights the transition towards automated and continuous production methods in China's explosive manufacturing sector [6][70][74] Capital Expenditure and Capacity Release - The report emphasizes the importance of capital expenditure in the explosive and ammunition sector, with significant improvements in financial indicators for listed companies involved in the production chain. This is expected to lead to enhanced performance as production capacities are expanded [7][31] - Local military enterprises in China are actively participating in capacity building through mergers and acquisitions, which will allow them to benefit from the industry's growth [7][20]