Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Viewpoints - Indonesia is considering the procurement of Chinese-made J-10 fighter jets, which is expected to boost the military trade market's activity [10][14] - China's military trade currently accounts for 5.9% of the global military trade market, significantly lower than the US at 43% and Russia at 9.6% [12][14] - The military industry is anticipated to see an inflection point in orders as it enters the second half of the "Centenary Goal of Building a Strong Army" by 2025, with new technologies and products expected to create new market directions [14] Summary by Sections 1. Industry Overview - The closing index for the defense industry is at 1508.79, with a 52-week high of 1712.48 and a low of 1113.62 [1] 2. Investment Suggestions - Two main investment themes are suggested: 1. Aerospace and "gap-filling" new focuses, including companies like Feilihua, Fenghuo Electronics, and AVIC Shenfei [14] 2. New technologies, products, and markets with greater elasticity, including companies like Aerospace Intelligent Manufacturing and Guangdong Hongda [14] 3. Market Performance - The military industry index saw a slight increase of 0.07%, while the broader market indices showed higher gains, indicating a relatively weaker performance in the military sector [16] - The top ten performing stocks in the military sector this week included Xinguang Optoelectronics (+10.62%) and Huawu Co., Ltd. (+9.71%) [18] 4. Valuation Levels - As of June 6, 2025, the military industry index stands at 10727.13, with a PE-TTM valuation of 103.35 and a PB valuation of 3.29 [21] - Historical data shows that 79.75% of the time since January 1, 2014, the PE-TTM valuation has been lower than the current level [21] 5. Data Tracking - Recent data tracking includes information on private placements and stock incentive plans for various military companies, indicating active capital movements within the sector [24][26]
国防军工行业报告：印尼考虑采购中国歼-10战斗机，有望带动军贸市场景气度提升
China Post Securities·2025-06-09 06:30