Group 1 - The National Defense Science and Technology University is conducting a high-tech knowledge training class for senior military officials in Shandong Province, emphasizing the importance of local economic and social development [2][3] - Shandong's leadership, represented by Secretary Lin Wu, highlighted the province's commitment to implementing Xi Jinping's directives and fostering a modern industrial system while ensuring economic stability and growth [2] - The training program aims to strengthen cooperation between the National Defense Science and Technology University and Shandong Province in areas such as talent cultivation, scientific research, and academic exchange [3] Group 2 - The training class includes visits to high-level military and local units, allowing participants to experience the rich cultural heritage of Shandong and the advancements in military reform and technology [3] - The event reflects Shandong's strategic role as a major military province, with a focus on enhancing national defense mobilization and supporting military readiness [2][3]

Investment Rating - The report assigns an "Overweight" rating for the defense industry, consistent with the previous rating [8]. Core Insights - The national defense budget for 2025 is set at 1,784.7 billion yuan, reflecting a year-on-year increase of 7.2%, which is higher than the expected GDP growth target of 5% [3][8]. - The defense budget growth rate has remained stable over the past nine years, with the proportion of defense spending to GDP still having room for improvement compared to countries like the US and Japan [3][8]. - The report emphasizes the importance of the defense budget as a foundation for modernization and equipment development, with a consistent growth trend observed from 2016 to 2024 [3][8]. Summary by Sections National Defense Budget Overview - The 2025 defense budget is 1,784.7 billion yuan, marking a 7.2% increase, which aligns with the stable growth trend observed in previous years [3][8]. - The defense budget growth has been consistent, with annual increases of 7.6%, 7%, 8.1%, 7.5%, 6.6%, 6.8%, 7.1%, and 7.2% from 2016 to 2024 [8]. Comparison with Other Countries - Japan's defense budget for 2025 is projected at 8.7 trillion yen, a 9.4% increase, while the US defense budget for the fiscal year 2024 is approximately 886 billion USD, accounting for 3% of its GDP [8]. - China's defense spending as a percentage of GDP has remained below 1.5%, indicating significant potential for growth compared to global averages and specific countries [8]. Strategic Implications - The report highlights the ongoing modernization of the military and defense capabilities as a priority, with a focus on implementing Xi Jinping's military strategies and enhancing combat readiness [8]. - The year 2025 is seen as a pivotal year for transitioning from the 14th Five-Year Plan to the 15th, with expectations for steady growth in defense spending to support modernization goals [8]. Recommended Investment Targets - The report suggests focusing on companies within the aerospace and aviation supply chain, recommending specific stocks such as AVIC Optoelectronics, Aerospace Electric, AVIC Shenyang Aircraft, and others [8].

Core Viewpoint - The Chinese government is committed to a coordinated development of national defense and economic construction, with a planned defense budget of 1.81 trillion yuan for 2025, reflecting a 7.2% increase from the previous year [1][2]. Summary by Sections National Defense Budget - The 2025 national defense budget is set at 1.81 trillion yuan, with a 7.2% increase from the previous year's execution [1]. - Central government expenditure is 1.78 trillion yuan, also showing a 7.2% growth compared to the previous year [1]. Allocation of Increased Defense Spending - The increase in defense spending will focus on developing new combat capabilities, enhancing traditional military forces, and improving military training and education systems [3]. - The budget is legally managed and approved by the National People's Congress, ensuring transparency in its allocation and use [2]. Strategic Objectives - The defense budget aims to enhance China's military capabilities in response to complex security challenges and to fulfill international responsibilities [2]. - The military modernization process is aligned with national modernization goals, aiming to achieve the centenary military objectives by 2027 [1][2]. Key Areas of Focus - Development of new operational forces and a new military structure [3]. - Improvement of reconnaissance, joint strike capabilities, and comprehensive support systems [3]. - Emphasis on practical military training and the development of a new military talent cultivation system [3]. - Ongoing reforms in national defense and military personnel policies to enhance training and living conditions for troops [3].

行业周报 | 国防军工 证券研究报告 | 行业评级 | 推荐 (维持) | | --- | --- | | 报告日期 | 2025 年 02 月 23 日 | 相关研究 【兴证军工观察】战略看多航天精导产业 链-2025.02.19 【兴证军工】"全国低空交通一张网"正 式启动，统一标准实现高水平布局 -2025.02.18 【兴证军工】体系梗阻破冰在即，结构性 反转可待-2025.02.09 S1220517040001 shikang@xyzq.com.cn S0190519080005 liboyan@xyzq.com.cn S0190524070009 xudongxiao@xyzq.com.cn 行业评级 推荐（维持） 报告日期 2025 年 02 月 23 日 继续战略看多航天精导产业链，十四五末需求 拐点已至 投资要点： 2025-02-10 至 2025-02-21，国防军工（中信）指数上涨 2.20%，在 30 个一级行业指数中涨幅第 15， 跑输上证指数 0.08pct，与沪深 300 指数涨幅相同，跑输创业板指数 2.73pct。 分析师：石康 截至 2 月 21 日，219 个军工标的 ...