Investment Rating - The industry rating is "Outperform the Market" [5] Core Viewpoints - The report emphasizes the importance of high-quality advancement in national defense and military modernization, aligning with the "14th Five-Year Plan" and the goal of achieving a strong military by 2027 [43][44] - It highlights the need for efficient resource utilization and cost control in military modernization efforts, advocating for a sustainable development approach [4][45] - The report anticipates significant growth in both domestic and international demand for military products and services, driven by multiple catalysts including the "14th Five-Year Plan" and rapid military trade development [10][47] Summary by Sections Industry Investment Rating - The military industry is rated as "Outperform the Market," indicating expected returns above the market benchmark [5] Key Points from the Report - The report outlines the fundamental requirements for military modernization during the "14th Five-Year Plan" period, focusing on advanced combat capabilities and military governance modernization [43][44] - It stresses the integration of new production capabilities with combat capabilities, enhancing the national strategic system and capabilities [44] - The report also discusses the necessity of policy support to address challenges in planning and cross-domain collaboration [4][45] Market Performance - The military industry index decreased by 2.15% from November 10 to November 14, underperforming compared to the Shanghai Composite Index, which fell by 1.08% [12][18] - The military index has increased by 13.35% since 2025, while the Shanghai Composite Index has risen by 17.62%, indicating a relative underperformance of 4.27% [20] Stock Performance - Notable stock performances include Tian'ao Electronics and Shanghai HuGong, which saw increases of 12.63% and 12.35% respectively, while stocks like Chunzong Technology and Lais Information experienced declines of 17.43% and 15.39% [24][26] Fund Flows and Valuation - The report notes a decrease in passive fund sizes but an increase in fund shares, with a net inflow of 4.57 billion yuan into military ETFs during the week [28] - As of November 14, the military sector's price-to-earnings ratio (TTM) stands at 68.88, indicating a high valuation relative to historical levels, but with expectations of recovery in 2026 [46][37]

Core Viewpoint - The article emphasizes the strategic deployment of China's national defense and military modernization during the "15th Five-Year Plan" period, highlighting the importance of high-quality development and the leadership of the Communist Party under Xi Jinping's guidance [1][2]. Group 1: Fundamental Requirements for Military Modernization - The "15th Five-Year Plan" period requires a strong adherence to the absolute leadership of the Party over the military, ensuring that political construction is prioritized in military modernization efforts [3]. - The modernization of national defense and the military must be integrated into the broader strategy of Chinese-style modernization, balancing development and security [4]. Group 2: Key Tasks for Military Modernization - Accelerating the construction of advanced combat capabilities is crucial, focusing on modernizing military theory and optimizing military force structures [8]. - Promoting military governance modernization is essential to address the complexities of military operations and enhance overall governance [9]. - Strengthening the integrated national strategic system and capabilities is necessary to maximize national strategic power and ensure effective collaboration between military and civilian sectors [10]. Group 3: Quality and Efficiency in Military Modernization - Emphasizing quality and efficiency is vital, with a focus on high-quality development as a core principle for military modernization [12]. - Reform and innovation are necessary to overcome challenges in modernization, ensuring that military construction aligns with practical needs and operational effectiveness [13].

（37）促进高质量充分就业。深入实施就业优先战略，健全就业促进机制，构建就业友好型发展方式。加强产业和就业协同，积极培育新职业新岗位，支持企业稳岗扩岗。完善人力资源供需匹配机制，健全终身职业技能培训制度，强化择业和用人观念引导，着力解决结构性就业矛盾。完善就业支持和公共服务体系，稳定和扩大高校毕业生、农民工、退役军人等重点群体就业，推动灵活就业、新就业形态健康发展。加大创业支持力度，增强创业带动就业效应。完善劳动标准体系和劳动关系协商协调机制，加强劳动者权益保障，营造公平有序就业环境。完善就业影响评估和监测预警，综合应对外部环境变化和新技术发展对就业的影响。（38）完善收入分配制度。坚持按劳分配为主体、多种分配方式并存，提高居民收入在国民收入分配中的比重，提高劳动报酬在初次分配中的比重。健全各类要素由市场评价贡献、按贡献决定报酬的初次分配机制，促进多劳者多得、技高者多得、创新者多得。完善劳动者工资决定、合理增长、支付保障机制，推行工资集体协商制度，健全最低工资标准调整机制，加强企业工资分配宏观指导。多渠道增加城乡居民财产性收入。加强税收、社会保障、转移支付等再分配调节。促进和规范公益慈善事业发展。规范收入分配 ...