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]

Summary of Key Points from Conference Call Records Industry Overview - Global military expenditure continues to expand, with Asia's share significantly increasing to 24% in 2023, driven mainly by military spending growth in China, Japan, South Korea, and the Middle East [1][2] - The global military trade market is valued at approximately 1 trillion RMB, with the US holding about 50% market share (around 500 billion RMB) and China only 5% (around 50 billion RMB), indicating substantial growth potential for China in high-value equipment sectors [1][3] Company Insights: Guorui Technology - Guorui Technology benefits from military trade and the India-Pakistan conflict, showing strong stock performance, particularly in 2025, with radar business revenue exceeding 50% and gross profit margin reaching 84% [1][5] - The company underwent significant asset restructuring between 2019 and 2020, enhancing its competitiveness and establishing itself as the sole platform for military trade under the China Electronics Technology Group [1][6] - In 2025, Guorui Technology anticipates a substantial increase in related sales, projected at 2.2 billion RMB, a tenfold increase from 2024, primarily due to expected growth in military radar orders [9][10] Company Insights: Aerospace Nanhu - Aerospace Nanhu, backed by the China Aerospace Science and Industry Corporation, focuses on air defense early warning radar and has shown significant stock performance improvements, with a 130% increase in 2025, driven by a recovery from previous underperformance [12][13][15] - The company faced challenges in 2024 due to delayed orders and international shipping uncertainties, resulting in a revenue of only 220 million RMB and a loss of 80 million RMB. However, it rebounded in Q1 2025 with a revenue of 360 million RMB, a 12-fold increase year-on-year [15][22] - Future growth potential is substantial, with domestic revenue expected to reach 3 billion RMB and export business potentially reaching 2 billion RMB, totaling 5 billion RMB in revenue [16][22] Market Dynamics - The India-Pakistan conflict has provided China with international promotional opportunities, enhancing the competitive advantage of Chinese military products, particularly in high-value equipment like advanced fighter jets [4][5] - Guorui Technology's radar business has seen a gross profit margin increase from 26.6% in 2020 to 40% in 2023, despite a slight decline in 2024, indicating strong demand and profitability in military radar [7] Strategic Developments - Guorui Technology is positioned as a core player in military trade, having taken over military radar business from the China Electronics Technology Group, which has committed to not engaging in military radar business anymore [8] - Aerospace Nanhu has diversified its radar product offerings, with three new radar products entering mass production, each expected to contribute 1 billion RMB annually [14] Conclusion - The military trade industry, particularly in radar technology, presents significant growth opportunities for companies like Guorui Technology and Aerospace Nanhu, driven by geopolitical tensions and increasing military expenditures in Asia [23]

9月24日午后，三大指数持续上涨，盘面上半导体、游戏等板块涨幅居前，军工板块持续上涨。同 类规模最大的航空航天ETF（159227）震荡上行，截至13时25分，上涨0.36%，成交额7116万元，稳居 同类第一。持仓股中，振芯科技、海特高新、振华风光、光机技术等领涨。 （责任编辑：张晓波 ） 【免责声明】本文仅代表作者本人观点，与和讯网无关。和讯网站对文中陈述、观点判断保持中立，不对所包含内容 的准确性、可靠性或完整性提供任何明示或暗示的保证。请读者仅作参考，并请自行承担全部责任。邮箱： news_center@staff.hexun.com 航空航天ETF（159227） 跟踪国证航天指数，该指数军工属性极强，申万一级军工行业占比 97.96%，是全市场军工含量最高的指数！更聚焦的是，其航空航天装备权重占比高达65.4%，远超中证 军工和中证国防指数。作为跟踪该指数的最大规模ETF，为投资者提供了高效把握核心军工空天机遇的 途径。 每日经济新闻 在新国际形势、新战场形态下，行业新需求方向清晰。随着战争形态加速向信息化智能化战争演 变，一体化联合作战已成为基本作战形式，平台作战、体系支撑、战术行动、战略保障成 ...

Group 1 - The defense and military industry sector experienced a significant rise on September 24, with the popular defense ETF (512810) increasing by over 1% in the afternoon, with a trading volume exceeding 59 million yuan [1] - Key stocks in the sector included Aopu Optoelectronics, Tunan Co., and Ruichuang Micro-Nano, which saw gains of 4.05%, 3.25%, and 2.97% respectively [1] - Conversely, Xiangdian Co., Feiliwa, and Qiyi Er experienced declines of 3.17%, 1.54%, and 1.48% respectively [1] Group 2 - The 2025 Air Force Aviation Open event took place from September 19 to 23 in Changchun, showcasing the J-20 fighter jet for the first time, highlighting China's aerospace equipment technology strength [3] - A strategic defense agreement was signed between Saudi Arabia and Pakistan, which is expected to deepen cooperation in military trade [3] - Huatai Securities noted that the worsening situation in the Middle East has raised concerns about the reliability of American equipment, potentially boosting China's military trade demand [3] - Global defense spending is increasing, with expectations for China's equipment exports to the Middle East strengthening, particularly with the upcoming Dubai Airshow in November serving as an important showcase [3] - Huafu Securities projected significant growth in both domestic and international demand for the defense industry from 2025 to 2027, driven by multiple catalysts including the 14th Five-Year Plan and rapid military trade development [3] - The defense ETF (512810) passively tracks the CSI Military Industry Index, which includes top-weighted stocks such as China Shipbuilding, Guangqi Technology, and AVIC Shenyang Aircraft [3] Group 3 - The top ten weighted stocks in the CSI Military Industry Index include China Shipbuilding, Guangqi Technology, AVIC Shenyang Aircraft, Aero Engine Corporation of China, AVIC Optoelectronics, AVIC Xi'an Aircraft, Feiliwa, China Great Wall, Aerospace Electronics, and AVIC Aircraft [4]

Investment Rating - The report maintains a "Positive" outlook for the defense and military industry [5] Core Viewpoints - The export of Chinese high-end military equipment is expected to accelerate, with military trade likely to see new growth [10][11] - The 2025 Changchun Airshow showcases China's expanding influence in military equipment [12][13] - The current market conditions indicate a continued positive outlook for the military industry [14] Summary by Sections Investment Recommendations and Targets - Key investment targets include: - Military Electronics: Aerospace Electric (002025, Buy), Zhonghang Optics (002179, Buy), and others [14] - New Quality and Domains: Haige Communication (002465, Buy), and others [14] - Engine Supply Chain: Western Superconducting (688122, Buy), and others [14] - Military Trade/Main Equipment: AVIC Shenyang Aircraft (600760, Unrated), and others [14] Industry Performance - The defense and military industry index (Shenwan) decreased by 0.97%, underperforming the CSI 300 index [16][18] - The overall military sector has stabilized recently, with a focus on domestic demand and military trade developments [10][14] Recent Developments - The signing of a defense agreement between Saudi Arabia and Pakistan enhances the export potential of Chinese military equipment [10][11] - The Changchun Airshow highlighted advanced military aircraft, including the J-20, indicating China's growing military capabilities [12][13]

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 stock of AVIC (02357) has risen over 4%, currently trading at 4.11 HKD with a transaction volume of 377 million HKD, following the signing of a defense agreement between Saudi Arabia and Pakistan, which states that any attack on either country will be considered an attack on both [1] Group 1: Company Overview - AVIC is the only flagship company in the Hong Kong capital market focused on aviation high-tech military and civilian general products and services [1] - The company holds controlling stakes in four A-share listed companies: AVIC Helicopter (600038), Hongdu Aviation (600316), AVIC Aircraft (600372), and AVIC Optoelectronics (002179) [1] - Its main business areas include helicopters, trainer aircraft, general aviation, airborne systems, aviation components, and aviation engineering services [1] Group 2: Industry Insights - According to Galaxy Securities, the military industry has significant potential, emphasizing a long-term focus over short-term gains [1] - The ongoing India-Pakistan conflict is enhancing the visibility of Chinese military products, indicating a favorable environment for military trade [1] - The combination of domestic demand and military trade is expected to open up substantial equipment demand opportunities [1]

Group 1 - The defense and military industry sector experienced significant movement, with Hongda Electronics leading with a rise of 6.38%, Plittech up by 5.26%, and Huafeng Technology increasing by 4.65% [1] - The defense military ETF (512810) saw a price increase of over 1% in the market [1] - China Galaxy Securities suggests that the defense and military sector is expected to stabilize as the fund adjustment period post "September 3" approaches its end [3] Group 2 - The upcoming procurement of equipment under the "14th Five-Year Plan" is anticipated to boost upstream orders, with a positive outlook for order growth in the fourth quarter [3] - NATO countries are significantly increasing military spending, indicating an escalation in the global arms race, while China's military expenditure has considerable room for growth [3] - The long-term outlook for the military industry is optimistic, with the potential for increased domestic demand and military trade, especially in light of the India-Pakistan conflict [3] Group 3 - The defense military ETF (512810) is highlighted as an efficient investment tool, covering various themes such as commercial aerospace, deep-sea technology, military AI, low-altitude economy, and large aircraft [3]

Investment Rating - The industry investment rating is "Recommended (Maintain)" [1] Core Insights - The military trade market is significantly influenced by geopolitical factors, with advanced weaponry impacting national military capabilities and political dynamics. The U.S. and its allies dominate global military trade exports, accounting for 64.10% and 78.06% of total exports in the periods 2015-2019 and 2020-2024, respectively [2][34] - The global military trade market is characterized by high concentration, with the top ten exporting countries accounting for 89.70% of total exports from 2015-2019 and 88.60% from 2020-2024. The U.S. and France are the top two exporters in the latter period, with a combined share of 52.60% [2][34] - China's military trade share is expected to increase in the long term, aligning with its manufacturing capabilities and international influence, despite currently holding only 3.9% of the global military trade market in 2024 [2][34] Summary by Sections Military Trade Overview - Military trade, or arms trade, is a unique sector closely tied to geopolitical and military strategies, reflecting national interests and political continuity [12] - The United Nations defines military trade as the transfer of military equipment between countries, which plays a crucial role in regulating international political relations [12] Global Military Trade Landscape - According to SIPRI, global military trade has experienced stable growth, with total trade increasing from 80.82 billion TIV in 1950 to 289.38 billion TIV in 2024, reflecting a compound annual growth rate of 1.72% [30] - The military trade market has undergone three significant fluctuations since 1950, with the most recent period (2002-present) showing a recovery in trade volumes due to increased global tensions and military spending [30] Major Military Exporting Countries - The top five military exporting countries from 2015-2019 were the U.S., Russia, France, China, and Germany, with the U.S. maintaining a dominant position [34] - The military trade export figures for the U.S. rose from 503.68 billion TIV in 2015-2019 to 609.49 billion TIV in 2020-2024, marking a 21.01% increase [35] China's Military Trade Situation - China's military trade has seen fluctuations, with exports decreasing from 88.62 billion TIV in 2015-2019 to 83.85 billion TIV in 2020-2024, a decline of 5.38% [35] - The report highlights that China's military trade is expected to grow due to increasing geopolitical conflicts and the country's enhanced military capabilities [2][34]