Core Viewpoint - The A-share market saw a significant rise in military-related stocks, particularly in the aerospace sector, with the Aerospace ETF (159227) achieving a notable increase of 2.1% and reaching a new high since its listing [1] Group 1: Market Performance - The military industry sector experienced a collective surge, with major military groups and related concepts showing strong performance [1] - The Aerospace ETF (159227) recorded a trading volume of 76.14 million yuan, leading among similar products [1] - Key stocks such as Changlong Military and Inner Mongolia First Machinery Group saw substantial gains, with Changlong Military hitting the daily limit and Inner Mongolia First Machinery Group rising over 6% [1] Group 2: Fund Flows - Since July, the Aerospace ETF (159227) has attracted significant net inflows, totaling 448 million yuan as of August 5, with the latest scale exceeding 800 million yuan [1] - The ETF remains the top product in its category in terms of capital inflow [1] Group 3: Analyst Recommendations - Shenwan Hongyuan suggests increasing attention on military stocks, particularly those with elastic or thematic characteristics [1] - Industrial sectors such as weaponry, deep-sea technology, commercial aerospace, and low-altitude economy are highlighted for their high-frequency thematic rotations since May [1] - Future focus areas include traditional main battle equipment, unmanned intelligence, underwater operations, cyber defense, and hypersonic technology [1] Group 4: Index Characteristics - The Aerospace ETF (159227) closely tracks the National Aerospace Index, which has a significant military industry weight of over 97.86% [1] - The core sectors of aviation and aerospace equipment account for 66.8% of the index's weight, emphasizing a focus on critical areas within the aerospace equipment industry chain [1]

Group 1 - The core viewpoint is that 2025 marks the end of the "14th Five-Year Plan," with a structural reversal in industry demand expected to continue until 2027 [1] - The military industry chain's upstream enterprises, which have a high asset securitization rate, have seen significant order growth since the Spring Festival, leading to a notable increase in stock prices from mid-February to mid-April [1] - Following a peak in orders for upstream component companies, stock prices have retreated since mid-April, while themes related to military trade exports, weaponry, deep-sea technology, commercial aerospace, and low-altitude economy have experienced high-frequency rotations since May [1] Group 2 - The upcoming September 3 military parade is expected to catalyze sentiment in the military industry sector due to its grand scale and high media attention [1] - The military ETF (512660) tracks the China Securities Military Index, which includes representative listed companies in the defense and military industry, reflecting the overall performance of the sector [1] - The index covers multiple subfields within the national defense and military industry, showcasing high industry concentration and distinct military characteristics [1]