军工行业周报：机遇大于挑战、动力大于压力-20250603

Investment Rating - The report maintains an "Accumulate" investment rating for the defense and military industry [3] Core Viewpoints - The defense and military industry (Shenwan) rose by 2.13% this week, ranking 3rd among 31 industries. In May, the military index increased by 6.34%, also ranking 3rd. The military trade and controllable nuclear fusion sectors led the market performance this month [2] - The report highlights that the recent geopolitical tensions, such as the India-Pakistan conflict, have increased market recognition of China's military trade products, leading to significant capital inflow into the military sector [2] - The report discusses the impact of the US's technology export restrictions on China's aviation industry, indicating that these restrictions may present both challenges and opportunities for domestic aircraft manufacturing [3][12] Summary by Sections Recent Market Performance - The defense and military index increased by 2.13% this week, with significant gains in military trade and controllable nuclear fusion sectors [2][27] - The top gainers included companies like Rongfa Nuclear Power (+31.79%) and Zongheng Co. (+25.63%) [27] Important Events and Announcements - The report notes significant developments in the military sector, including the successful commercial operation of the C919 aircraft, marking a milestone for China's aviation industry [28] - The report also mentions the establishment of new subsidiaries by Tianhai Defense and investments in drone technology by Aerospace Electronics [28] Industry Dynamics - The military industry is experiencing a structural shift, with a focus on new military technologies and dual-use applications. This shift is driven by the need for modernization and the changing geopolitical landscape [9][10] - The report emphasizes that the military industry is at a critical juncture, with demand diversifying and expectations being reshaped due to international tensions and technological advancements [10] Investment Opportunities - The report suggests focusing on specific sectors within the military industry, including aircraft manufacturing, missile technology, and commercial aerospace [19][20][21][22][24] - Companies with core competencies and reasonable valuations are highlighted as having long-term investment value [10][19]