Core Viewpoint - The article discusses the development of advanced stealth materials using photonic crystals, highlighting the innovative research and engineering efforts of a team led by Professor Shi Jiaming at the National University of Defense Technology, aimed at enhancing military equipment's stealth capabilities against various detection methods [1][2][3]. Group 1: Research and Development - The need for improved stealth protection for military equipment has become urgent due to advancements in electronic reconnaissance and precision-guided technologies [2]. - The research began with the exploration of photonic crystals, which can manipulate electromagnetic waves by adjusting their optical properties, although they were initially only in the experimental stage [2][3]. - The team successfully developed a theoretical model to block specific frequency electromagnetic waves by designing the periodic structure of photonic crystals [2][3]. Group 2: Engineering and Testing - The team progressed to the engineering phase, creating small samples of photonic crystals and testing their effectiveness on silicon substrates, which showed promising results [4]. - However, challenges arose when transitioning to flexible fabric substrates, leading to extensive trials and adjustments to the manufacturing process [5][6]. - After three years of dedicated efforts, the team overcame significant technical hurdles to enable the large-scale production of flexible photonic crystal films [6][7]. Group 3: Multi-band Detection Solutions - The team faced new challenges in achieving infrared stealth for high-temperature targets while also addressing laser and radar detection, which required different approaches [7]. - A novel concept called "spectral hole drilling" was developed to create specific transmission channels within the photonic crystal structure, allowing for effective stealth across multiple detection bands [7][8]. - Successful tests demonstrated that the stealth materials did not compromise the performance of the radar systems while effectively evading detection [8]. Group 4: Future Directions - The team continues to optimize their processes and technologies, with a focus on rapid innovation and adaptation to enhance combat capabilities [8]. - The emphasis on developing new quality combat power aligns with national directives to leverage advanced technologies for military applications [8].

Core Viewpoint - The article emphasizes the continuous growth of China's defense budget, which is projected to reach approximately 178.47 billion yuan in 2025, reflecting a year-on-year increase of 7.2%, maintaining a steady growth rate for three consecutive years. This growth is expected to lead to a valuation recovery in the military industry, particularly in sectors such as missiles, special robots, new materials, and commercial aerospace [1][2][7]. Group 1: Defense Budget Insights - China's defense budget for 2025 is approximately 178.47 billion yuan, with a year-on-year growth of 7.2%, consistent with the growth rates of 7.1% and 7.2% in 2022 and 2023 respectively [2] - The defense budget's growth aligns with the GDP growth target of around 5% for 2025, indicating a balanced approach to military spending relative to economic development [2] - Compared to other countries, China's defense spending remains low at around 1.5% of GDP, suggesting potential for future increases in defense expenditure [2] Group 2: Strategic Development and Policy Focus - The 2025 Government Work Report highlights the need to accelerate the development of new combat capabilities and emphasizes the completion of the "14th Five-Year Plan" for military construction [3] - The report stresses the importance of developing new productive forces and enhancing the network information system, which are critical for modern military capabilities [3] - The focus on new technologies and industries, such as commercial aerospace and low-altitude economy, is expected to receive ongoing policy support, fostering growth in these sectors [4][5] Group 3: Investment Recommendations - The military sector is anticipated to experience a valuation recovery, with specific areas or stocks likely to lead the recovery process, expanding from individual companies to broader sectors [7] - Recommended investment areas include missiles, special robots, new materials and processes, as well as low-altitude economy and commercial aerospace [7]

A股午后回落，创业板指、科创50指数跌超1%； 港股午后亦走弱，两大股指午后双双下探。 个股方面，京东健康跌超12%，京东集团跌约5%； 李宁、 同程旅行、快手等涨近5%。 与此同时，亚太市场普遍走低，其中，日经225指数跌超800点，跌幅为2%，澳洲标普200指数跌近2%，富时马来西亚综指跌近1%，韩国综合指数、富时新加 坡海峡指数小幅下跌。 具体来看，沪指早盘窄幅震荡，午后在金融、地产等板块的拖累下回落走低；创业板指、科创50指数等均下挫。截至收盘，沪指跌0.25%报3372.55点，深证 成指跌0.5%报10843.73点，创业板指跌1.31%报2205.31点，科创50指数跌1.24%，沪深北三市合计成交18619亿元，较昨日减少逾900亿元。 场内超3500股飘绿，地产、半导体、券商、保险、医药等板块均走低；有色板块强势上扬，新威凌30%涨停，罗平锌电、华锡有色、华钰矿业等均涨停；煤 炭、钢铁板块亦拉升，安源煤业涨停，三钢闽光涨超7%；军工板块活跃，迈信林涨超10%创出新高，川大智胜、神剑股份、云赛智联等涨停；汽车产业链股 亮眼，恒勃股份、多利科技、征和工业等涨停；白酒股再度上扬，迎驾贡酒涨超5%， ...

Investment Rating - The industry investment rating is "Buy" (maintained) [1] Core Viewpoints - The defense budget is steadily increasing, providing a fundamental guarantee for the prosperity of the military industry. The defense budget has maintained a single-digit growth for nine consecutive years since 2016, indicating a stable growth trend [2] - The global situation is tense, and major power competition is intensifying, which necessitates an appropriate increase in military spending to accelerate equipment upgrades and ensure national economic security [2] - China's military spending is about one-fourth of the United States, with a defense budget of 1.67 trillion yuan (approximately 229.41 billion USD) for 2024, which is about 25.89% of the US military budget [3] - The proportion of military spending to GDP in China is below the world average, with China's defense spending remaining under 1.5% of GDP, while the UK is expected to increase its military spending to 2.5% of GDP by 2027 [3] - The government work report emphasizes the need to enhance training and preparation, accelerate the development of new combat capabilities, and focus on major defense projects and network information system construction [4] Summary by Sections Investment Logic - The military budget provides a basic guarantee for the military industry's prosperity, with steady growth in defense spending since 2016 [2] - The current global tensions and major power competition necessitate an increase in military spending to support equipment upgrades and national economic security [2] Global Military Spending Trends - Other countries may enter a high-growth military spending cycle, with significant increases expected in Europe as they respond to security needs [3] - The EU plans to mobilize nearly 800 billion euros for defense spending, indicating a readiness to significantly increase military expenditures [3] Defense Budget Allocation - The defense budget is increasingly tilted towards equipment spending, with the proportion of equipment costs rising from 33.2% to 41.1% between 2010 and 2017 [4] - New combat capabilities and technological innovation are highlighted as key areas for future military spending [4] Investment Recommendations and Valuation - Focus on two structural opportunities: consumable ammunition (missiles, long-range rocket artillery, and aerial bombs) and platform-type equipment, particularly new aircraft and their associated aerospace power industry [5] - Emphasize the importance of new technologies and the potential for military technology to transition into civilian applications, particularly in satellite internet and low-altitude economies [5] - Military trade is expected to open up new demand opportunities, with equipment exports providing significant profit potential for related companies [5]