Investment Rating - The report maintains a positive outlook on the controllable nuclear fusion and deep-sea technology industries, highlighting investment opportunities in cryogenic equipment and compressors [3][5]. Core Insights - Controllable nuclear fusion is viewed as the ultimate energy source of the future, with low-temperature technology being an indispensable component. It offers safety, abundant raw materials, and clean outputs compared to other energy sources [4][14]. - China is actively participating in the ITER (International Thermonuclear Experimental Reactor) project, with expectations for commercial nuclear fusion by 2035, which will significantly expand the market for cryogenic equipment [4][6]. - The deep-sea technology sector encompasses various fields, with compressors playing a crucial role in deep-sea applications, facing high technical barriers [4][6]. - The marine economy is projected to grow significantly, with the market for compressors in deep-sea technology expected to expand from approximately 19.48 billion yuan in 2025 to 40.16 billion yuan by 2030, reflecting a compound annual growth rate of 15.57% [4][6]. Summary by Sections 1. Controllable Nuclear Fusion - Controllable nuclear fusion is recognized for its safety, cleanliness, and abundant raw materials, with the D-T fusion reaction being the most feasible [14][19]. - Magnetic confinement is identified as a promising method for large-scale controllable nuclear fusion, with tokamak devices being the most widely used globally [21][26]. - Low-temperature technology enhances the efficiency and stability of nuclear fusion reactions, which is critical for maintaining the necessary conditions for fusion [34][36]. - The global nuclear fusion market is projected to reach approximately 203.5 billion USD by 2055, with cryogenic equipment expected to capture a market space of about 10.175 billion USD from 2025 to 2035 [4][6]. 2. Deep-Sea Technology - Deep-sea technology includes advanced techniques for exploring and utilizing deep-sea resources, with compressors being essential for various applications [4][6]. - The marine economy is expected to grow from approximately 10.54 trillion yuan in 2024 to 14.31 trillion yuan by 2030, indicating strong growth potential [4][6]. - The report emphasizes the importance of compressors in deep-sea applications, highlighting the technical challenges that need to be addressed for successful implementation [4][6]. 3. Related Listed Companies - The report suggests focusing on companies such as Zhongtai Co., Ice Wheel Environment, Xue Ren Co., and Kaishan Co. for investment opportunities in cryogenic equipment and compressors within the controllable nuclear fusion and deep-sea technology sectors [5][6].

Core Viewpoint - The defense and military industry sector is experiencing significant activity, with a notable rise in the defense military ETF (512810) and strong performance from key stocks, indicating a potential upward trend in the sector [1][3]. Group 1: Market Activity - On September 26, the defense military sector saw a rapid increase, with the ETF (512810) rising over 1% and trading volume exceeding 57 million yuan [1]. - Key stocks such as Xiangdian Co. reached a daily limit increase, while other companies in the AVIC system, like AVIC Aviation Power, rose over 5% [1]. Group 2: Company Developments - On September 18, AVIC Shenyang Aircraft Corporation completed a 4 billion yuan private placement to expand its military aircraft manufacturing facility, which will significantly enhance the production efficiency of fifth-generation fighter jets [3]. - The J-20 fighter jet was showcased for the first time at the Changchun Aviation Expo on September 16, highlighting China's advancements in aviation technology [3]. Group 3: Industry Outlook - According to AVIC Securities' military group, the defense and military industry is expected to undergo structural rotation, with a positive outlook for the fundamentals as the "14th Five-Year Plan" concludes and the "15th Five-Year Plan" begins [3]. - The sector is characterized by clear and orderly rotation among major themes such as low-altitude economy, commercial aerospace, deep-sea technology, large aircraft, and military trade, indicating resilience and vitality [3]. - The ETF (512810) passively tracks the CSI Military Index, with its top ten weighted stocks including China Shipbuilding, Guangqi Technology, AVIC Shenyang, and others [3].

Core Viewpoint - The aerospace and defense sector is experiencing positive momentum, driven by recent developments in China's space missions and anticipated growth in military procurement and new strategic areas. Group 1: Market Performance - As of September 26, 2025, the CN5082 aerospace industry index increased by 0.41%, with notable gains in constituent stocks such as Aerospace Technology (688239) up 5.17%, AVIC Chengfei (302132) up 3.04%, and Aero Engine Corporation (600893) up 2.69% [1] - The Aerospace ETF (159227) rose by 0.18%, with the latest price reported at 1.13 yuan [1] Group 2: Industry Insights - China Galaxy Securities highlights the optimistic outlook for the "14th Five-Year Plan," focusing on military trade and new strategic areas, with expected procurement orders likely to start in Q4 2025 [2] - The military industry is expected to see a surge in demand for new main battle equipment and enhanced combat capabilities as the 100th anniversary of the military in 2027 approaches [2] - The military trade sector is entering a "Deepseek" phase, with a rapid increase in global market share, driving both quantity and price growth in equipment demand [2] Group 3: ETF and Index Composition - The Aerospace ETF (159227) tracks the CN5082 index, which has a high military content of 97.96%, focusing on aerospace and defense sub-sectors [2] - The constituent stocks cover a comprehensive range of the industry, including fighter jets, transport aircraft, helicopters, aero engines, missiles, satellites, and radar, aligning with the "integrated aerospace" strategic direction [2]

Monetary Policy and Economic Measures - The People's Bank of China will conduct a 600 billion MLF operation on September 25, 2025, to maintain liquidity in the banking system, with a one-year term [2] - The Ministry of Commerce, along with eight other departments, issued 13 specific measures to support service exports [3] - The Ministry of Finance and the Ministry of Emergency Management allocated 150 million yuan for disaster relief in Guangdong, Hainan, and Fujian [3] - The National Development and Reform Commission arranged 200 million yuan for post-typhoon recovery in Guangdong, focusing on infrastructure and public services [3] Automotive Industry Outlook - The Secretary-General of the Passenger Car Association, Cui Dongshu, optimistically forecasts annual car sales to reach 40 million during the 14th Five-Year Plan period, with an average growth rate of 3% and an annual export growth of 9% [4] Company News - Huada Technology is planning to acquire semiconductor power device company Huayi Microelectronics, leading to a stock suspension [6] - China Jushi intends to repurchase 30 to 40 million shares of its stock [6] - Newpoint Software plans to repurchase shares worth 30 to 50 million yuan [6] - Several companies, including Hemei Group and Guoguang Electric, announced plans for share reductions by their shareholders [6] Market Sentiment and Investment Focus - Debon Securities maintains a "slow bull" view, focusing on the technology sector despite recent market volume shrinkage [7] - Changjiang Securities remains bullish on the Chinese stock market, suggesting a focus on industries with rising revenue and profit margins, such as fiberglass and medical services [7]

Summary of Yaxing Anchor Chain Conference Call Industry and Company Overview - Yaxing Anchor Chain operates in the deep-sea technology sector, focusing on core components for the shipping and offshore oil and gas industries, benefiting from an upturn in these sectors and the growth potential from floating wind power and mining chains, with expectations of doubling performance over three years [2][5][6] Key Points and Arguments - **Market Position**: Yaxing holds over 50% global market share in ship anchor chains, with even higher domestic market share, and is expanding into cast steel products, potentially doubling the value per ship to a market space of 4 billion RMB [2][10] - **Offshore Oil Service Growth**: The company’s mooring chain business is benefiting from increased utilization of drilling platforms and a new investment cycle in oil fields, with new orders in the first half of the year reaching 39,500 tons, exceeding last year's total [2][7] - **Floating Wind Power Potential**: Floating wind power is projected to enter commercialization by 2030 and mature by 2034, with a market size of approximately 14-15 billion RMB, significantly expanding Yaxing's growth potential as a mooring chain supplier [2][8][11] - **Mining Chain Market**: The mining chain market is estimated at around 2 billion RMB, currently dominated by foreign companies. Yaxing has secured multiple orders, indicating a shift towards domestic alternatives and future revenue growth [2][8][12] Additional Important Insights - **Underestimated Market Position**: The market has undervalued Yaxing's high market share in ship anchor chains and the performance elasticity from product diversification, alongside the growth potential from floating wind power and mining chains [2][9] - **Future Growth Projections**: Revenue growth is expected to be between 15% and 20%, with profit growth between 20% and 26%. The current valuation corresponds to a PE ratio of 23 for 2026 and 19 for 2027, indicating strong investment value [3][13] - **Government Support**: The company is positioned to benefit from government initiatives aimed at promoting high-quality development in the marine economy, as highlighted in recent government reports [4][6][11] Conclusion Yaxing Anchor Chain is well-positioned for significant growth in the deep-sea technology sector, with strong market shares, expanding product lines, and favorable government policies supporting its business model and future performance potential [2][5][9][13]

Group 1 - The three major indices continued to rise, with semiconductor and gaming sectors leading the gains, while the military industry maintained an upward trend [1] - The largest aerospace ETF (159227) showed a steady increase, up 0.36% with a trading volume of 71.16 million yuan, maintaining its position as the top in its category [1] - The military industry is expected to experience structural rotation internally, with clear rotation characteristics in sectors such as low-altitude economy, commercial aerospace, deep-sea technology, large aircraft, and military trade [1] Group 2 - The aerospace ETF (159227) tracks the National Aerospace Index, which has a strong military attribute, with 97.96% of the index comprising military-related sectors [2] - The weight of aerospace equipment in this ETF is as high as 65.4%, significantly exceeding that of other military indices [2] - This ETF provides investors with an efficient way to capture core military aerospace opportunities [2]

Group 1 - The A-share market showed mixed performance on September 23, with semiconductor, energy storage, and power battery sectors leading the gains, while the military industry sector opened high but closed lower [1] - The Aerospace ETF (159227) reached a new high of 1.35 billion yuan in total assets, making it the largest aerospace and defense ETF in the market [1] - Recent successful training exercises of China's naval aircraft, including the J-15T, J-35, and KJ-600, on the Fujian aircraft carrier mark a significant breakthrough in the country's aircraft carrier development, potentially boosting short-term sentiment in the military sector [1] Group 2 - China Aviation Securities indicates that the military sector is currently in a state with significant upward potential and a solid bottom, expecting better performance in the second half of the year compared to the first half [1] - The "14th Five-Year Plan" demand is clear under the "big military" new track, with international market developments expanding opportunities [1] - Themes such as low-altitude economy, commercial aerospace, deep-sea technology, large aircraft, and military intelligence are expected to remain active [1][2]

Group 1 - Aerospace ETF Tianhong (159241) closed at a gain of 0.35% as of September 22, 2025, marking two consecutive days of increase with a turnover rate of 27.34% and a transaction volume of 120 million yuan, indicating active market trading [2] - The latest scale of Aerospace ETF Tianhong reached 491 million yuan with a total of 429 million shares, achieving a new high in nearly one month [2] - The net inflow of funds into Aerospace ETF Tianhong was 47.7466 million yuan, with a total of 51.0593 million yuan accumulated over the last five trading days [2] Group 2 - Aerospace ETF Tianhong (159241) serves as an efficient tool to capture core military aerospace opportunities, tracking the National Securities Aerospace Index, with a military attribute of 97.86%, making it the highest military content index in the market [3] - The weight of aerospace equipment in the ETF is as high as 66.8%, significantly exceeding that of the CSI Military and CSI National Defense indices [3] Group 3 - The recent successful launch and recovery training of the Navy's third type of carrier-based aircraft on the Fujian ship marks a significant breakthrough in China's aircraft carrier development, contributing to the transformation of the Navy [4] - The Navy's carrier-based aviation has accelerated its development, achieving a significant leap from single aircraft to a system, from land-based to carrier-based operations, and from conventional takeoff to electromagnetic catapult [4] Group 4 - Zhonghang Securities assesses that the military industry sector is currently in a state with ample upward potential and a solid bottom, with short-term volatility risks in rapidly rising sub-sectors and individual stocks, but a relatively low likelihood of structural deep adjustments [5] - The military industry is expected to perform better in the second half of the year compared to the first half, with emerging themes such as low-altitude economy, commercial aerospace, deep-sea technology, large aircraft, and military intelligence likely to remain active [5]

Core Viewpoint - The aerospace ETF Tianhong (159241) has shown significant growth in both scale and share, indicating strong investor interest in the aerospace and defense sector [3][5]. Product Highlights - The aerospace ETF Tianhong (159241) tracks the Guozheng Aerospace Index, with a military attribute of 97.86%, making it the highest military content index in the market. The aerospace equipment weight is 66.8%, surpassing other military indices [3]. Hot Events - The 2025 Air Force Aviation Open Day commenced in Changchun, showcasing the modernization achievements of the Chinese Air Force through aerial performances and ground exercises [3]. - Concurrently, the 2025 Changchun Aviation Exhibition featured over a hundred types of equipment, focusing on emerging fields like drones and low-altitude economy, serving as a platform for technology display and industry collaboration [4]. Institutional Views - According to AVIC Securities, the military industry is expected to enter a relatively stable phase due to recent events and the completion of mid-year performance disclosures. The market shows low systemic risk, with structural rotation within the military sector [5]. - The military sector has demonstrated resilience and vitality, avoiding volatility risks associated with overheating in single areas. Improved performance in certain fields and the anticipation of new orders are expected to strengthen the market outlook [5].

Core Viewpoint - The chairman and actual controller of Zhenray Technology, Yu Faxin, has been placed under detention by the Huangshi Municipal Supervisory Committee, temporarily unable to perform his duties as a director of the company [2][7]. Group 1: Company Leadership Changes - Yu Faxin's family informed Zhenray Technology about his detention on September 21, which prevents him from fulfilling his responsibilities as a director [7]. - During Yu Faxin's absence, director Zhang Bing will act in his capacity as chairman, while other directors and senior management continue their normal duties [12] [16]. - Yu Faxin holds a direct shareholding of 21.04% in Zhenray Technology, maintaining control over the company as of June 30 [9]. Group 2: Financial Performance - Zhenray Technology's financial performance has shown a declining trend since its listing in 2022, with net profits decreasing from 108 million yuan in 2022 to 17.85 million yuan in 2024 [17]. - The company reported a significant increase in net profit for the first half of 2025, reaching 62.32 million yuan, a year-on-year growth of 1006.99% [20][22]. - The revenue for the first half of 2025 was 204.87 million yuan, reflecting a 73.64% increase compared to the same period last year [22]. Group 3: Business Operations - Zhenray Technology specializes in terminal RF front-end chips, high-density packaging microwave modules, and microsystems, with established platforms for design, testing, and reliability [16]. - The company is focusing on strategic emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology, with a significant increase in orders and projects [23].