军工行业周报：行业估值持续下杀，公募持仓大幅下降

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [1]. Core Views - The military industry is experiencing a significant decline in public fund holdings, with a 22.18% decrease in holdings amounting to 87.487 billion yuan in Q1 2024 compared to Q4 2023 [2][3]. - The industry is facing a slowdown in revenue growth, with a median revenue growth rate of 2.97% in 2023, down from 18.88% in 2022, and a negative net profit growth rate of -6.54% [4][29]. - The military industry is entering a "big military" era, expanding into various sectors such as civil aviation, low-altitude economy, information security, military trade, and commercial aerospace, significantly increasing market potential [14][15]. Summary by Sections 1. Industry Performance - As of Q1 2024, public fund holdings in the military sector have decreased significantly, ranking 11th out of 31 industries, with a holding ratio of 3.46% [2]. - Foreign investment in the military sector has increased, with a holding scale of 26.310 billion yuan, representing 1.95% of total holdings [3]. 2. Financial Analysis - The median revenue growth rate for core military stocks has dropped to 2.76% in Q1 2024, down from 11.46% in Q1 2023, indicating a continued slowdown in the industry [7][29]. - The military sector is experiencing a negative growth in prepayments and contract liabilities, showing a decline of 10.45%, which reflects insufficient short-term demand [7][34]. 3. Market Trends - The military industry has seen a valuation decline, with the defense and military index PE at 47.05 times, indicating a significant drop since July 2023 [9]. - The low-altitude economy is gaining attention, with a market size of 505.95 billion yuan in 2023, expected to exceed 1 trillion yuan by 2026 [10][11]. 4. Investment Opportunities - The report suggests focusing on investment opportunities in unmanned equipment, satellite internet, electronic countermeasures, and the civil aviation sector [17]. - The military industry is expected to witness a wave of mergers and acquisitions as companies seek to consolidate and enhance their market positions [16].