Minsheng Securities·2025-07-27 08:12Investment Rating - The report indicates a positive shift in the investment rating for the military industry, suggesting that the industry is moving out of a bottom phase and entering a growth phase [3][19]. Core Insights - In Q2 2025, active funds increased their allocation to the military sector for the first time after ten consecutive quarters of reduction, with the allocation changing from -0.003ppt to -0.001ppt, marking a significant turning point for the industry [3][4]. - The total scale of military-themed funds increased by 24.58% to 39.8 billion yuan in Q2 2025, recovering to levels above those seen in Q4 2023 [22][24]. - Active funds have shown a preference for increasing positions in key sectors such as weapons and aviation, while the concentration of holdings has continued to decrease [5][25]. Summary by Sections Fund Allocation Analysis - In Q2 2025, active funds' allocation to military stocks increased, with the military sector's market value rising to 891 million yuan, accounting for 2.99% of the total market value of active funds [14][19]. - The military-themed fund's market value increased to 39.8 billion yuan, with a total of 84 stocks held, and the top ten stocks accounting for an average of 56.24% of the fund's net asset value [22][23]. Holdings Concentration - The concentration of holdings among the top fifteen stocks in active funds decreased to 66.85%, down 2.10ppt from the previous quarter, indicating a trend towards diversification [25][27]. - The top stocks by market value include 中航沈飞 (AVIC Shenyang Aircraft Corporation) and 睿创微纳 (Raytron Technology), which have seen significant increases in the number of funds holding them [32][33]. Sector Preferences - Active funds have increased their exposure to the weapons sector by 1.30ppt and the aviation sector by 0.98ppt, while reducing exposure to sectors like new materials and shipbuilding [27][28]. - The military industry is characterized by a high proportion of state-owned enterprises, which account for over 70% of the market value, reflecting institutional preferences [5][27]. Key Companies to Watch - The report suggests focusing on companies involved in guided weapons, military trade, and new production capabilities, including 菲利华 (Feilihua), 中航沈飞 (AVIC Shenyang), and 国光电气 (Guoguang Electric) among others [7][19].