CAITONG SECURITIES·2025-10-28 13:02Core Insights - The report maintains a positive outlook on the defense and military industry, highlighting recent performance and valuation metrics [2][4] - The defense and military industry index has shown a weekly increase of 2.81%, ranking 12th out of 31 in the Shenwan first-level industry classification [8][12] - The current PE-TTM for the defense and military industry is 85.77, which is in the 78.19th percentile of the past decade, indicating a relatively high valuation [14][15] Industry and Stock Performance Review Industry Performance Review - Over the past week (October 18-25, 2025), the defense and military industry index increased by 2.81%, ranking 12th among 31 Shenwan first-level industries [8] - In the past month (September 25 - October 25, 2025), the index saw a minimal change of 0.02%, ranking 17th [9] - Over the past year (October 25, 2024 - October 25, 2025), the index increased by 12.18%, ranking 19th [14] Stock Performance Review - The top-performing stocks in the defense and military sector over the past week include: - Aowei Communication (21.31%) - Feiliwa (17.92%) - Xingwang Yuda (15.29%) [19] - Conversely, the worst-performing stocks include: - Hangfa Control (-1.44%) - Qiyi Er (-1.60%) - Guorui Technology (-1.89%) [19] Funding Situation - The total transaction volume for the defense and military industry was 242.1 billion yuan for the week of October 18-25, 2025, which is a decrease of 43.00% year-on-year and a decrease of 22.10% week-on-week [30] - The military ETF fund shares decreased by 0.42% compared to the previous week but increased by 64.28% year-on-year [32] Important Company Announcements - Companies such as Aerospace Rainbow reported a 162.48% increase in revenue year-on-year for Q3 2025, while Guorui Technology reported a 6.98% decrease in revenue [36] - Notable increases in net profit were reported by companies like Zhenlei Technology (337.49% increase) and Sanjiao Defense (466.32% increase) [36] Industry News - Significant developments include the completion of the first phase of the Zhuque-3 rocket flight test and the launch of over 10,000 Starlink satellites [4]