Group 1 - In 2025, China's defense technology will enter a new stage of systematic advancement, with the military's new combat capabilities accelerating their development [1] - The People's Navy officially enters the "three aircraft carrier era" with the commissioning of the Fujian aircraft carrier on November 5, 2025 [4][5] - The Fujian aircraft carrier, with a full displacement of over 80,000 tons, is the world's first conventional-powered aircraft carrier equipped with electromagnetic catapult technology [8] Group 2 - The Fujian aircraft carrier conducted its first live training at sea, successfully testing its electromagnetic catapult and recovery capabilities with various carrier-based aircraft [12] - The first amphibious assault ship, Sichuan, completed its maiden voyage trial, achieving a "quasi-aircraft carrier" combat capability with a full displacement of over 40,000 tons [17] - The 054B missile frigate, with a displacement of approximately 5,000 tons, features advanced stealth capabilities and a multifunctional vertical launch system, marking breakthroughs in stealth technology and combat command systems [21] Group 3 - The Chinese Air Force showcased the Attack-11 drone in a mixed formation flight with advanced fighter jets, highlighting its stealth, endurance, and precision capabilities [26] - The 2025 September 3 military parade displayed a high degree of informationization and intelligence in weaponry, emphasizing the military's capability to adapt to technological advancements and future warfare [27]

进入12月，在中国军队多个军兵种部队开展的实战化演训中，无人机、网络信息体系、AI智能技术 等"新"力量发挥出重要作用。这是2025年中国军队新域新质力量发展的生动写照。 图片2025年9月3日，纪念中国人民抗日战争暨世界反法西斯战争胜利80周年大会在北京隆重举行。图为 空中无人作战方队接受检阅。 中新社记者 盛佳鹏 摄 此外，徒步方队的四支战略兵种本身就代表新域新质力量，与装备方队中的新型作战力量群共同展示中 国军队新域新质力量的建设成就。 军事专家潘新毛认为，未来战场将以体系对体系、算法对算法，实现先敌发现、先敌决策、先敌打击。 智能化装备带来震撼的背后是中国军队强大的军事力量和科技实力，为维护和平提供坚不可摧的新质支 撑。 值得关注的是，越来越多的无人化智能化装备出现在部队的练兵场上。中国军队新域新质力量的发展不 是停留在"展示"层面，而是向着"实战化常态运用"迈进，实现从战斗力"试验田"到"主产地"的关键跨 越。 年内，一段四足机器人参加部队实战化训练的视频受到海内外高度关注。据报道，在这场有人无人协同 攻击对抗演练中，参训官兵融合运用无人机、"机器狼"等无人装备，配合完成先期侦察印证、要点精打 清除 ...

Market Overview - The market experienced a rebound yesterday, with the Shanghai and Shenzhen stock exchanges recording a trading volume of 1.81 trillion, an increase of 84.4 billion compared to the previous trading day [1] - By the end of the trading session, the Shanghai Composite Index rose by 0.87%, the Shenzhen Component Index increased by 1.53%, and the ChiNext Index gained 1.77% [1] Lithium Battery Sector - CICC indicates that a new upward cycle for lithium batteries has begun, with energy storage expected to be a key driver [2] - Since 2025, the lithium battery industry has shown signs of bottom reversal due to stabilizing prices and improved supply-demand structure [2] - Investment strategies include focusing on energy storage demand, new technologies like solid-state batteries, and the revival of charging station construction [2] Aerospace and Defense Sector - Huatai Securities released a 2026 outlook for the aerospace and defense sector, noting that the military's equipment construction will shift from quantity to quality during the 14th Five-Year Plan [3] - The focus will be on new fourth-generation equipment, with an emphasis on unmanned systems, low-cost munitions, and military AI [3] - The report highlights opportunities in commercial aerospace, low-altitude economy, deep-sea technology, and military-civilian technology applications [3] Building Materials Sector - Galaxy Securities published a 2026 strategy report for the building materials industry, indicating a recovery in the building materials index and fundamentals in 2025 [4] - The report emphasizes structural investment opportunities due to traditional industry capacity reduction and the continued high demand in emerging sectors [4] - Key areas of focus include the renovation of existing properties, urban renewal, and the performance of leading companies in high-performance fiberglass and consumer building materials [4]

Core Viewpoint - The report by Huatai Securities indicates that the aerospace and military industry is expected to transition from quantity to quality improvements during the 14th Five-Year Plan period, with a focus on new-generation equipment in the upcoming 15th Five-Year Plan [1] Group 1: Military Equipment Development - The military's weaponry construction will prioritize new-generation fourth-generation equipment as a key direction during the 15th Five-Year Plan [1] - The development of new domain and new quality combat forces is seen as a new trend in military advancement, with expectations for large-scale, practical, and systematic growth during the 15th Five-Year Plan [1] Group 2: Investment Opportunities - Suggested areas for investment include drone offense and defense, ground unmanned equipment, underwater offense and defense, low-cost munitions/missiles, and military AI [1] - The new generation of military aircraft and missile industry chains, along with new domain and new quality directions, are recommended for attention [1] Group 3: Market Potential - The military trade market and the application of military technology in strategic emerging industries present vast market opportunities [1] - Areas of interest include commercial aerospace, low-altitude economy, deep-sea technology, nuclear energy utilization, and domestically produced large aircraft, as well as the military-to-civilian technology application sector [1]

Investment Rating - The report maintains a "Strong Buy" rating for several key companies in the military industry, including 中航西飞, 中航光电, 航天彩虹, and others, indicating a strong expectation for their stock price to outperform the benchmark index by over 20% [8]. Core Insights - The military industry is highlighted as a crucial area for investment, particularly in aerospace and defense sectors, with a focus on companies that are positioned to benefit from increased military spending and technological advancements [2][3]. - The report emphasizes the potential of commercial aerospace, particularly low-orbit satellite applications, which are expected to have significant military and civilian applications [3]. - The upcoming Dubai Airshow is anticipated to be a major event, showcasing over 200 aircraft and new technologies, which could serve as a catalyst for the industry [20][22]. Industry Overview - The military industry index has shown a performance of -3.8% over the past month, but a positive trend of 12.1% over six months and 13.2% over twelve months, indicating a recovery and growth potential [5][11]. - As of November 14, 2025, the SW National Defense and Military Industry Index has increased by 13.35% year-to-date, although it has underperformed the Shanghai and Shenzhen 300 Index by 4.27% [11][12]. - The report notes that the industry consists of 119 listed companies with a total market capitalization of approximately 2060.9 billion [3]. Key Events and Catalysts - Significant geopolitical events, such as Japan's escalating rhetoric regarding Taiwan, are noted as influencing factors in the military sector, potentially impacting defense spending and strategic priorities [18][19]. - The successful completion of the first sea trial of the Navy's 四川舰 (Sichuan Ship) is highlighted as a key development, showcasing advancements in naval capabilities [22]. - The report identifies several key companies that are expected to benefit from increased demand in military trade and domestic military needs, including 中航沈飞, 中航西飞, and others [7].

Investment Rating - The industry rating is "Outperform the Market" [5] Core Viewpoints - The report emphasizes the importance of high-quality advancement in national defense and military modernization, aligning with the "14th Five-Year Plan" and the goal of achieving a strong military by 2027 [43][44] - It highlights the need for efficient resource utilization and cost control in military modernization efforts, advocating for a sustainable development approach [4][45] - The report anticipates significant growth in both domestic and international demand for military products and services, driven by multiple catalysts including the "14th Five-Year Plan" and rapid military trade development [10][47] Summary by Sections Industry Investment Rating - The military industry is rated as "Outperform the Market," indicating expected returns above the market benchmark [5] Key Points from the Report - The report outlines the fundamental requirements for military modernization during the "14th Five-Year Plan" period, focusing on advanced combat capabilities and military governance modernization [43][44] - It stresses the integration of new production capabilities with combat capabilities, enhancing the national strategic system and capabilities [44] - The report also discusses the necessity of policy support to address challenges in planning and cross-domain collaboration [4][45] Market Performance - The military industry index decreased by 2.15% from November 10 to November 14, underperforming compared to the Shanghai Composite Index, which fell by 1.08% [12][18] - The military index has increased by 13.35% since 2025, while the Shanghai Composite Index has risen by 17.62%, indicating a relative underperformance of 4.27% [20] Stock Performance - Notable stock performances include Tian'ao Electronics and Shanghai HuGong, which saw increases of 12.63% and 12.35% respectively, while stocks like Chunzong Technology and Lais Information experienced declines of 17.43% and 15.39% [24][26] Fund Flows and Valuation - The report notes a decrease in passive fund sizes but an increase in fund shares, with a net inflow of 4.57 billion yuan into military ETFs during the week [28] - As of November 14, the military sector's price-to-earnings ratio (TTM) stands at 68.88, indicating a high valuation relative to historical levels, but with expectations of recovery in 2026 [46][37]

Investment Rating - The report maintains an "Outperform" rating for the defense and military industry, indicating a positive outlook for investment opportunities in this sector [2]. Core Insights - The defense equipment industry is expected to enter a new order-driven growth cycle as the "14th Five-Year Plan" becomes clearer and is implemented, leading to a recovery in performance and a revaluation phase for the military sector [2][38]. - The military aviation equipment, particularly military aircraft and engines, remains a core strength of the military sector, while new domains characterized by smart technology and unmanned equipment are anticipated to become key growth areas under the "14th Five-Year Plan" [2][38]. - The military trade is expected to provide sustained momentum for the domestic military industry [2][38]. Summary by Sections Fund Holdings - As of Q3 2025, public funds' total market value in the defense and military industry reached 101.36 billion, a quarter-on-quarter increase of 1.66%, ranking 14th among 31 industries [4][12][17]. - The concentration of holdings has increased, with the top ten stocks accounting for 54.14% of total holdings, reflecting a trend of capital flowing towards leading companies [22][25]. - The holdings of state-owned enterprises decreased to 68.49%, while private enterprises increased to 31.51%, marking a two-year high for private holdings [22][25]. Fund Preferences - Public funds show a preference for heavyweights in military electronics, materials, and leading manufacturers in the aviation sector, with significant investments in companies like AVIC Shenyang Aircraft Corporation and AVIC Engine [25][29]. - Active funds particularly favor upstream electronic and material companies, as well as downstream aviation assembly enterprises, with a notable focus on military electronics as a core foundation for future warfare [29][30]. Investment Recommendations - The report suggests focusing on several key areas for investment: 1. Aviation Equipment: AVIC Shenyang, AVIC Engine, AVIC Chengfei, AVIC Xi'an, etc. 2. Military New Materials: Feilihua, Guangwei Composite, Tunan Co., Guangqi Technology, etc. 3. Military Electronics: Fudan Microelectronics, Hongda Electronics, AVIC Optoelectronics, Ruichuang Micro-Nano, Newray, etc. 4. New Domains: Zhenlei Technology, Mingsheng Electronics, Zhongke Xingtai, Jingpin Special Equipment, Lianchuang Optoelectronics, Zhongwu Drone, Ruike Laser, etc. 5. Military Trade: AVIC Shenyang, Guangdong Hongda, Gaode Infrared, Inner Mongolia First Machinery, etc. [2][38].

Group 1 - The core focus of the news is the display of unmanned combat vehicles, particularly the "Machine Wolf," during the 93rd anniversary military parade, highlighting advancements in unmanned warfare technology [1][3] - The new unmanned combat units demonstrate capabilities in reconnaissance, strike operations, mine clearance, and support, showcasing a breakthrough in coordinated operations between manned and unmanned systems [3][4] - The "Machine Wolf," an evolution of the four-legged robotic dog equipped with weapons or reconnaissance devices, exhibits enhanced reconnaissance and strike capabilities compared to its predecessor [4] Group 2 - The military parade featured a multimedia presentation titled "Striving for a Strong Army Towards First-Class," which included footage of the "Machine Wolf" collaborating with soldiers in combat scenarios [4] - The "Machine Wolf" is designed to execute precise firepower while rapidly maneuvering in enemy-occupied areas, maintaining tactical coordination with ground troops [4] - The era of unmanned combat has arrived, pushing tactical operations to new heights through technology, emphasizing the importance of intelligent and unmanned equipment in modern warfare [4]

Group 1 - The article discusses the upcoming 80th anniversary of the victory in the Chinese People's Anti-Japanese War and World Anti-Fascist War, highlighting a grand military parade featuring a significant number of new domestic military equipment [1] - Hypersonic weapons are emphasized for their advantages, with speeds exceeding five times the speed of sound, allowing for rapid global travel [2] - The Dongfeng-17 hypersonic missile is noted for its unique design and enhanced penetration capabilities, making it a focal point of military discussions since its debut in 2019 [4][5] Group 2 - The Dongfeng-17's flight trajectory is characterized by its variability, which enhances its ability to evade defenses and extend its range [7] - Future developments of the Dongfeng-17 may include the addition of decoy warheads to further improve its penetration capabilities against enemy defense systems [10] - The Yingji-21 missile is designed for long-range strikes against surface vessels, showcasing its adaptability across various platforms [11][13] Group 3 - The article highlights advancements in unmanned combat systems, emphasizing the importance of coordinated operations between different types of drones [19][22] - The Sichuan ship, equipped with electromagnetic catapults, is expected to launch large drones for reconnaissance and strike missions, enhancing its operational versatility [25][28] - The development of large unmanned surface and underwater vehicles is noted, with a trend towards multifunctionality and increased size [29][31] Group 4 - The article discusses the effectiveness of directed energy weapons, such as lasers and microwave systems, in countering unmanned threats [34][37] - The maturity of domestic anti-drone technologies is highlighted, indicating a shift towards practical applications in defense [35][38] - The upcoming military parade is expected to showcase these advanced directed energy systems [38] Group 5 - The rapid development of the air force and navy is underscored, with new aircraft models set to be featured in the military parade [39] - The introduction of the J-15T carrier-based fighter and the J-35 stealth fighter is noted, indicating advancements in naval aviation capabilities [39][41] - The integration of support aircraft, such as aerial refueling and early warning systems, is emphasized for enhancing operational effectiveness [42][44]

Group 1 - The upcoming commemoration of the 80th anniversary of the victory in the Chinese People's Anti-Japanese War and the World Anti-Fascist War will feature a grand military parade, showcasing a significant proportion of new domestic military equipment [1] - Hypersonic weapons, defined as flying at speeds exceeding five times the speed of sound (greater than or equal to 6,125 kilometers per hour), are a key focus in military technology, with countries like Russia and the United States investing heavily in research [2] - The Dongfeng-17 hypersonic missile, first revealed during the 2019 National Day parade, features a unique flat triangular warhead design that enhances its maneuverability and penetration capabilities for precise strikes on medium-range targets [4][5] Group 2 - The Dongfeng-17's flight trajectory is highly variable, allowing for advanced evasion techniques and extended range, making it a formidable hypersonic missile [7][9] - The YJ-21 missile is designed for long-range strikes against surface vessels, showcasing hypersonic capabilities that enhance its effectiveness in modern naval warfare [10][12] - The YJ-21 can be launched from various platforms, indicating a trend towards family-based development in hypersonic weapon systems [12][15] Group 3 - New domain and new quality combat forces will be a highlight of the upcoming military parade, reflecting significant advancements in unmanned and intelligent combat equipment [17] - The era of unmanned combat is upon us, with collaborative operations between manned and unmanned systems reshaping battlefield dynamics [19] - The integration of large unmanned aerial vehicles (UAVs) on platforms like the Sichuan ship enhances operational versatility, allowing for reconnaissance and strike capabilities [23][25] Group 4 - The development of waterborne unmanned systems is trending towards larger and multifunctional designs, capable of executing various missions including intelligence gathering and direct attacks [29][31] - Directed energy weapons, such as microwave and laser systems, are becoming effective tools for countering unmanned threats, showcasing technological and cost advantages [34][37] - The Chinese military has reached a practical stage in the development of anti-drone systems, with various models of directed energy weapons being showcased at defense exhibitions [35][37] Group 5 - The air force and navy have rapidly developed new aircraft models, with the upcoming military parade expected to feature an impressive aerial lineup [38][39] - The J-20S, a dual-seat variant of the J-20 stealth fighter, represents a significant advancement in capabilities, allowing for better coordination with unmanned systems [41][50] - The integration of various aircraft types, including refueling and early warning aircraft, into a modular and systematic air combat framework enhances operational effectiveness [42][44]