Investment Rating - The industry investment rating is "Outperform the Market" [1] Core Views - As of April 20, 2024, among the 120 tracked defense industry listed companies, 60 have disclosed their 2024 annual reports, with 29 companies showing year-on-year growth in performance, and 12 companies reporting a net profit growth rate exceeding 20%. Notable companies with strong performance include China Shipbuilding Defense, Tianyin Electromechanical, and Aerospace Intelligent Manufacturing [4][12] - For the first quarter of 2025, 9 defense industry companies have released performance forecasts, with companies like China Shipbuilding Defense and China Heavy Industry expected to see year-on-year growth rates exceeding 300% [4][15] - Looking ahead to 2025, the defense industry is expected to experience a turning point in orders, driven by new technologies and products aimed at enhancing equipment performance and reducing costs. Two main investment themes are suggested: the aerospace theme and new technologies/products with greater elasticity [5][16] Summary by Sections Industry Overview - The closing index for the defense industry is 1413.55, with a 52-week high of 1712.48 and a low of 1113.62 [1] Performance Analysis - The defense sector index has seen a decline of 2.79% this week, ranking last among 31 sectors [18] - The top-performing stocks in the defense sector this week include Beimo Gaoke (+11.94%) and Hangya Technology (+9.70%) [20] Company Performance - Key companies and their 2024 revenue and profit growth rates include: - China Shipbuilding Defense: Revenue of 194.02 billion, profit growth of 684.86% - Aerospace Intelligent Manufacturing: Revenue of 77.81 billion, profit growth of 87.02% [14] - For Q1 2025 forecasts, China Shipbuilding Defense is expected to report a profit growth rate of 1103% [15] Valuation Levels - As of April 18, 2025, the defense sector's PE-TTM valuation is 72.84, and the PB valuation is 3.26, both at historical mid-levels [23] Investment Recommendations - Suggested investment themes include: 1. Aerospace and "gap-filling" technologies, with companies like Feiliwa and YF Electronics 2. New technologies and markets with greater elasticity, including Aerospace Intelligent Manufacturing and Guorui Technology [5][16]