Core Viewpoint - The report from CITIC Securities indicates that China's military industry is evolving from a reliance on domestic demand to a new development model driven by three engines: domestic demand, foreign trade expansion, and civilian applications supporting military needs [1] Group 1: Domestic Military Demand - The first curve of domestic military demand focuses on "preparation for combat" and equipment modernization, driven by stable growth in defense budgets and the upgrading of equipment during the 14th Five-Year Plan [1] - Key growth directions include strong deterrence through high-precision and systematic unmanned low-cost technologies [1] Group 2: Military Trade Expansion - The second curve represents military trade expansion, where China's military trade share continues to rise due to cost-effectiveness, systematic combat capabilities, and geopolitical cooperation under the Belt and Road Initiative [1] - This expansion allows China to become a significant global supplier, achieving both strategic influence and economic benefits [1] Group 3: Civilian Applications of Military Technology - The third curve involves the civilian application of military technology, leading to the emergence of trillion-level new industries such as commercial aerospace, low-altitude economy, future energy, deep-sea technology, and large aircraft [1] - This trend promotes the development of new processes, materials, and devices, creating a virtuous cycle of "military technology benefiting civilian applications, which in turn supports military development" [1]

Industry News - The Ministry of Industry and Information Technology issued the "Guidelines for the Construction of High-Standard Digital Parks," aiming to establish around 200 high-standard digital parks by 2027, with a target of achieving 100% coverage of dual-gigabit networks and effective deployment of computing power infrastructure [4] Company News - Chinese Media announced plans to use idle funds of 9.5 billion yuan to purchase financial products [7] - Xiaomi Group reported third-quarter revenue of 113.12 billion yuan, a year-on-year increase of 22.3%, with adjusted net profit reaching a record high of 11.3 billion yuan, up 80.9% year-on-year. The company aims to meet its annual delivery target of 350,000 units for Xiaomi cars this week [7] - Pinduoduo reported third-quarter revenue of 108.28 billion yuan, with adjusted earnings per ADS of 21.08 yuan [9] - Baidu's third-quarter financial report showed total revenue of 31.2 billion yuan, with core revenue of 24.7 billion yuan. The company disclosed AI business revenue for the first time, showing a year-on-year growth of over 50% [9] - Jingmei Technology announced a cooperation framework agreement with CATL for the joint design and development of "lithium battery composite busbars" [9] - Ever Creative, the second-largest shareholder of Yaxiang Integration, reduced its holdings by 130,000 shares as of November 18 [10]

Core Insights - The commercial space industry is rapidly emerging, with a clear short to medium-term outlook driven by the deployment of large satellite constellations for internet connectivity and other applications [2][3] - China's commercial rocket companies currently lack a large-capacity, low-cost, and highly reliable rocket, which is critical for meeting the urgent demand for satellite launches [2][4] Industry Overview - The satellite internet infrastructure is composed of numerous satellites in low Earth orbit (LEO), which are essential for various applications including national defense and emergency communications [3][4] - Major satellite constellations are being planned globally, including China's "Qianfan Constellation" and "National Grid Constellation," which face strict deadlines for satellite launches to secure frequency and orbital positions [3][4] Current Challenges - There is a significant mismatch between the urgent need for satellite launches and the insufficient rocket launch capacity available in China [4][5] - The current rockets available for satellite launches are primarily from the "national team," which also has to accommodate other space missions, leading to tight scheduling and delays [4][5] Technological Development - The key to reducing launch costs lies in reusable rocket technology, which requires not just a single breakthrough but a series of successful launches to validate and optimize the process [6][7] - Domestic companies are following SpaceX's lead in developing large liquid reusable rockets, but progress varies among different firms [6][7] Market Dynamics - The successful launch of new-generation rockets is crucial for establishing a reliable launch service that can meet the growing demand for satellite deployment [9][10] - The industry consensus is that private commercial rockets must play a significant role in satellite launches to achieve the necessary scale and frequency [5][10] Future Outlook - Experts suggest a dual-track approach for the next five years, focusing on scaling production to meet immediate satellite constellation needs while also developing operational reuse capabilities for rockets [11] - The establishment of a sustainable cycle of high-reliability launches, large orders, and cost reduction through industrial collaboration is seen as essential for the growth of the commercial space sector [10][11]

Core Insights - 6G technology is expected to be over 10 times faster than 5G, supporting integrated networks across air, land, sea, and space [1][2] - China has been conducting 6G technology trials for four consecutive years, completing the first phase and establishing over 300 key technology reserves [1] - The deployment of 6G networks is anticipated around 2030, with projections of over 5 billion connections by 2040, accounting for half of global mobile connections [1] Group 1: 6G Development and Features - 6G will evolve from mobile communication technology to a comprehensive digital information infrastructure, integrating communication, AI, sensing, computing, and security [1][2] - Key features of 6G include peak rates of 1 Tbps, latency below 0.1 ms, and a connection density exceeding 10 million devices per square kilometer [1][2] - The development of 6G is structured in three phases: key technology trials, technical solution trials, and system networking trials [4] Group 2: Industrial and Societal Impact - 6G is expected to drive deep intelligence in Industry 4.0, enabling fully automated factories and immersive communication in education and healthcare [2][3] - The integration of 6G with AI will enhance mobile information services, creating new operational systems and user experiences [6][7] - Different regions will focus on varying digital needs, such as smart manufacturing in China and industrial internet in Europe [3] Group 3: Policy and Ecosystem Development - The Chinese government has emphasized the cultivation of future industries, including 6G, in its 2025 work report [2][8] - Various cities, including Beijing and Shanghai, are implementing policies to accelerate 6G technology and industry development, establishing experimental platforms and fostering industry ecosystems [7][8] - The IMT-2030 (6G) promotion group is enhancing research capabilities and fostering collaboration across the industry to support 6G development [7]

Investment Rating - The report maintains a "Buy" rating for the telecommunications sector, highlighting opportunities in communication operators, artificial intelligence, satellite internet, and quantum technology [2][3]. Core Insights - The telecommunications sector is experiencing a downturn, with a weekly index drop of 4.77%. However, sub-sectors such as communication network technology services and industry applications have shown better performance [7][6]. - Significant advancements have been made in cutting-edge technologies, including quantum computing and 6G communication, which are expected to drive future growth [5][16]. - The report emphasizes the importance of the upcoming 6G technology, which is projected to be a key growth driver for the telecommunications industry [22][29]. Summary by Sections Market Performance - The telecommunications sector index fell by 4.77% over the past week, with specific sub-sectors performing relatively well [7][6]. - Notable performance metrics include a 31.30% increase in certain stocks, while others saw declines of up to 14.29% [11][15]. Industry Development and Key Events - The "Tianyan-287" superconducting quantum computer has been successfully built, marking a significant milestone in quantum computing [16]. - Major tech companies are competing in the space computing arena, with initiatives from Nvidia, SpaceX, and Google indicating a shift towards space-based AI infrastructure [22][24]. Investment Recommendations - The report suggests focusing on specific stocks within the telecommunications sector, including 300308, 300502, 300383, 601869, and 688027, among others [2][5]. - The emphasis is placed on sectors such as AI, satellite internet, and quantum technology as promising areas for investment [2][5].

Group 1 - The aerospace sector showed strong performance on November 17, with the aerospace index rising by 1.76%, driven by key events and market sentiment [1] - Notable stock performances included Tianhe Defense up 10.71%, Great Wall Military Industry up 10.00%, and Aerospace Development up 9.99% [1] - The Tianhong Aerospace ETF (159241) saw significant capital inflow, with a total of 17.91 million yuan over four out of the last five trading days [1] Group 2 - China's defense spending is projected to reach 1,784.7 billion yuan in 2025, marking a 7.2% year-on-year increase, which is expected to drive growth in military orders [2] - The military industry is transitioning from event-driven to fundamental-driven growth, with a clear improvement in performance indicators [2] - In Q1 2025, military enterprises reported a more than 40% year-on-year increase in advance payments, indicating strong downstream order demand [2] Group 3 - The aerospace industry is expected to maintain a favorable outlook in 2026, benefiting from both domestic and international demand [3] - The Tianhong Aerospace ETF (159241) focuses on commercial aerospace investment opportunities, covering sectors such as satellite internet and low-altitude economy [3] - The ETF's component stocks include leading state-owned enterprises in the aerospace sector, aligning with key themes in defense and aerospace technology [2][3]

Core Viewpoint - The military industry sector is experiencing a significant rise due to increasing geopolitical risks, with the aerospace index leading the gains among military-themed indices [1][2]. Group 1: Short-term Catalysts - The military sector's strength is primarily driven by geopolitical factors, including recent provocative statements from Japan and renewed large-scale airstrikes by Russia on Ukraine, which have heightened global uncertainty [4]. - The upcoming maiden flight of China's reusable rocket "Zhuque-3" in mid-November is also a notable event that could attract market attention [4]. Group 2: Long-term Catalysts - The "14th Five-Year Plan" laid the groundwork for the military industry, achieving significant milestones in weapon systems development, transitioning from research to small-scale production [8]. - The "15th Five-Year Plan" focuses on large-scale production and systematic combat capabilities, indicating a shift towards mass production of previously developed equipment [9]. - The emphasis on "high-quality transformation" in the military sector will drive demand for advanced technologies and materials, particularly in critical areas like high-end chips and aerospace engines [11][12]. Group 3: Performance Metrics - The military sector has shown a recovery trend, with a reported 16.99% year-on-year increase in revenue and a 14.01% increase in net profit for the third quarter of 2025 [15]. - Various sub-sectors, including defense information, aerospace, and commercial space, are also showing signs of recovery [15]. Group 4: Institutional Holdings - Institutional investment in the military sector remains at historical lows, with a total market value of 101.36 billion yuan, ranking 14th among primary industries [21]. - There is a notable structural adjustment within institutional holdings, with active funds reducing their total positions while passive funds maintain stable increases [22]. Group 5: Strategic Opportunities - The military trade sector is expected to provide substantial growth opportunities, with exports of military equipment showing significant increases, such as a 30.6% year-on-year growth in September 2025 [20]. - The diversification of weapon procurement sources by various countries presents a strategic opportunity for China's military exports [20]. Group 6: Focus Areas - The aerospace index is highlighted as a key area of focus, with the aerospace ETF (159227) showing significant inflows and a strong performance in the market [34]. - The ETF's top holdings reflect the core supply chain of the aerospace industry, aligning with national strategic needs in defense and aerospace [34].

Industry Overview - The report rates the industry as "Leading the Market - A" indicating a positive outlook for investment opportunities in the sector [1]. Key Investment Themes - The report emphasizes the ongoing global competition in technology, particularly in the computer industry, with a focus on AI and robotics as key growth areas [2][3]. - The domestic production process in critical areas such as chips, operating systems, and databases is expected to accelerate, creating opportunities for companies with lower levels of localization [3]. AI and Robotics - The AI and robotics sectors are highlighted as having vast development potential, with rapid iterations of various models and applications in both China and the US [3]. - The report identifies the need for standard upgrades in the robotics industry, presenting both challenges and investment opportunities [3]. Quantum Technology - Quantum computing is anticipated to bring disruptive innovations in computing power, with applications in quantum secure communication and anti-quantum encryption gaining traction [3][58]. - The report outlines the potential of quantum technology across four main areas: computing, communication, measurement, and anti-quantum encryption, each showing significant growth prospects [58][59]. Database Market - The database market is projected to grow significantly, with the global market size expected to exceed $100 billion in 2023, and China's market reaching approximately 74.1 billion yuan [11]. - The report forecasts a compound annual growth rate (CAGR) of 12.23% for China's database market, reaching 93.03 billion yuan by 2028 [11]. R&D Software and Measurement Instruments - The R&D design software and electronic measurement instruments sectors are characterized by high barriers to entry, strong business models, and low localization rates, indicating a favorable environment for domestic manufacturers [5]. - The report suggests that the push for technological self-sufficiency will lead to sustained growth in these sectors [5]. Cybersecurity and Encryption - The introduction of new regulations in cybersecurity is expected to drive the growth of the encryption industry, with specific guidelines enhancing the demand for secure communication solutions [21][23]. - The report highlights the importance of establishing a robust regulatory framework to support the development of the cybersecurity sector [21]. AI Glasses and Edge AI - AI glasses are identified as a promising entry point for edge AI applications, with global sales expected to reach 90 million units by 2030, reflecting a CAGR of approximately 97.42% from 2024 to 2030 [36]. - The report notes the increasing integration of AI capabilities into consumer products, enhancing user interaction and experience [36]. Recommended Companies - The report lists several companies to watch in various sectors, including R&D software (e.g., Huada Jiutian, Gacron Electronics), cybersecurity (e.g., Sanwei Xinan, Xinan Century), and quantum technology (e.g., IonQ, Rigetti) [78][80].

近期，航空航天相关ETF再获资金关注。热门ETF中，截至11月14日收盘，航空航天ETF天弘 （159241）获净申购200万份，成为同标的ETF中唯一实现净申购的产品。 中信证券表示，随着中国星网和G60千帆星座先后进入批量化发射阶段，以及海南商业航天发射场和商 业运载火箭的投入使用，大运力、低成本趋势正引领商业航天开启新时代。万亿市场规模的新赛道即将 扬帆起航，为相关产业链带来巨大的发展契机。 此外，Wind数据显示，最近的10个交易日（10月31日—11月13日）航空航天ETF天弘（159241）实现 累计资金净流入超6400万元。 航空航天ETF天弘（159241）紧密跟踪国证航天航空行业指数，该指数覆盖航空装备、航天装备、军工 电子等细分领域，涉及卫星互联网、大飞机、低空经济等前沿科技方向，这些行业具有高技术壁垒和强 研发属性。 ...

Core Insights - The article highlights the investment strategy of Chen Yunzong, a fund manager at GF Fund, focusing on identifying growth stocks and their growth stages through a dual-track approach of "traditional growth" and "emerging growth" [1][2]. Investment Strategy - Chen emphasizes a systematic approach to understanding industry attributes, industry cycle stages, and long-term trends before selecting quality growth stocks [1][2]. - The investment framework is centered around capturing excess returns from diverse growth directions, including technology and manufacturing sectors [2][3]. Performance Metrics - As of October 31, the GF Growth Initiation A fund managed by Chen achieved a one-year return of 88.81%, ranking in the top 3 out of 1,876 similar funds [1]. Fund Launch - A new fund, GF Innovation Growth, is set to launch on November 17, which will dynamically adjust the allocation between traditional and emerging growth to capture excess returns while maintaining industry balance [1][6]. Growth Categories - Growth stocks are categorized into "traditional growth" (e.g., new energy, semiconductors, military industry) and "emerging growth" (e.g., robotics, embodied intelligence, satellite internet) [2][5]. - Traditional growth strategies focus on cyclical growth, while emerging growth serves as an offensive tool for capturing future trends [2][3]. Dynamic Allocation - The allocation between traditional and emerging growth is adjusted based on market liquidity and risk appetite, enhancing both offensive and defensive capabilities of the portfolio [3][4]. Industry Rotation - Chen's investment approach involves a systematic method of industry rotation based on industry cycles, focusing on "industry position" and "valuation margins" rather than merely chasing market trends [4][5]. Future Focus Areas - Key sectors of interest include computing power, storage, edge innovation, brand globalization, robotics, satellite internet, and solid-state batteries [6][7]. - The computing power sector is particularly emphasized, with expectations of significant capital expenditure increases from domestic cloud service providers in the upcoming quarters [6][7]. Specific Sector Insights - The military industry is highlighted as a high-value sector, while the robotics sector is seen as a major application terminal for AI [7]. - Solid-state batteries and low-altitude economy are also critical areas of focus, with expectations of early breakthroughs in these technologies [7].