国防军工行业点评：两会话军工：军费增长7%，GDP占比1.36%

Investment Rating - The report maintains a "Recommended" rating for the defense and military industry [2] Core Insights - The defense budget for 2026 is set at 1,909.561 billion RMB, reflecting a 7% year-on-year increase, slightly down from 7.2% in 2025, indicating stable growth in military spending [4][5] - The military expenditure as a percentage of GDP is approximately 1.36%, which is significantly lower than the global average of 2.01%, suggesting room for growth in defense spending [4] - The report emphasizes the development of emerging industries such as aerospace and low-altitude economy, with a specific focus on accelerating the development of satellite internet [4][5] Summary by Sections Defense Budget and Economic Context - The defense budget has been stable in the single-digit growth range for 11 consecutive years, aligning with the GDP growth target of 4.5%-5%, indicating a coordinated approach to defense and economic development [4] - The global trend shows an increase in military spending, with the U.S. defense budget expected to exceed $1 trillion, highlighting the rationale for China's military budget growth [4] Aerospace and Emerging Industries - The 2026 government report introduces the goal of developing aerospace and low-altitude economy as new pillar industries, marking a shift from previous focuses on deep-sea technology [4] - The emphasis on "accelerating the development of satellite internet" indicates a strategic priority, with the satellite industry expected to experience significant demand growth [4] - The report outlines a comprehensive approach to the aerospace industry, covering military aviation, civil aviation, and commercial space, which opens up long-term growth opportunities [4] Strategic Developments and Military Readiness - The report indicates a transition in military strategy, with a focus on "advanced combat capabilities" rather than just "new quality combat capabilities," broadening the scope of military development [7] - The 2026 report highlights the importance of military modernization and readiness, with a focus on delivering high-end main battle equipment and integrated combat systems [7] - Investment opportunities are identified in military trade, aerospace, and intelligent equipment, driven by a global increase in military tensions and demand for advanced military capabilities [7]