重视航天及兵装需求景气，军贸基本面有望持续突破

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [5] Core Views - Core View 1: In the context of frequent geopolitical events, the focus is on the realization of military trade logic within the sector. The influence of geopolitical events on the military industry has transitioned from emotional catalysis to strengthening the fundamentals of military trade. The past decade's major geopolitical events have catalyzed the military sector in three phases: 1) Pre-2021: Short-term emotional catalysis with limited impact; 2) 2021-2024: Increased market focus on military trade, primarily domestic demand; 3) 2025 onwards: Realization of military trade logic leading to a revaluation of military assets [8][22] - Core View 2: A clear cycle of equipment release is emerging, with domestic demand entering a "new prosperity." The report highlights the following: 1) The aviation order inflection point has been established, with a 22% quarter-on-quarter increase in contract liabilities for aviation manufacturers in Q1 2025; 2) The missile release is driving significant improvement in component orders; 3) The engine inventory reduction and price adjustments are nearing an industry trend inflection point [9][10][27][33] Summary by Sections Market Overview - The defense and military industry index rose by 1.03% this week, ranking 7th among 31 first-level industries [7][57] - The total market value of the industry is approximately 2,559.24 billion, with a circulating market value of about 2,155.39 billion [2] Key Company Status - The report lists several key companies with their respective earnings per share (EPS) and price-to-earnings (PE) ratios for the years 2023 to 2027, indicating a positive outlook for earnings growth in the coming years [5] Equipment and Demand Dynamics - The report emphasizes the expected increase in domestic demand for military equipment, particularly in the aerospace sector, with a focus on the C919 aircraft, which is projected to deliver 20-30 units in 2025 [11][34] - The commercial space sector is anticipated to see significant growth, with an expected launch of approximately 2,100 satellites in 2025 [39] Recommendations for Attention - The report suggests focusing on missile and military electronics, military trade directions, domestic aircraft production, and new domain developments [41][42][43]