Core Viewpoint - The commissioning of China's first electromagnetic catapult aircraft carrier, Fujian, on November 7, showcases advanced electromagnetic launch technology and highlights breakthroughs in domestic aviation equipment [1] Industry Summary - The military industry sector is experiencing a reduction in the trend of passive capital outflows, coupled with strong demand recovery expectations for 2025-2026, indicating a positive outlook for capital flow [1] - The military industry is expected to benefit significantly from multiple catalysts, including the approaching 14th Five-Year Plan, the centenary of the military, and military trade development, leading to substantial growth in both domestic and international demand from 2025 to 2027 [1] - The military equipment sector, particularly aviation equipment, is poised to see significant benefits from the upcoming new prosperity cycle [1] ETF and Index Summary - The military ETF (512660) tracks the CSI Military Index (399967), which selects listed companies in aviation, aerospace, shipbuilding, weaponry, and military electronics to reflect the overall performance of China's military industry [1] - The index components exhibit a small and medium-cap style, primarily focusing on the aviation equipment and military electronics sectors [1] - As of November 14, 2025, the military ETF has a scale of 14.12 billion, ranking first among 12 similar products [2]

Core Viewpoint - The commissioning of China's first electromagnetic catapult aircraft carrier, Fujian, on November 7, showcases advanced electromagnetic launch technology and highlights breakthroughs in domestic aviation equipment [1] Group 1: Industry Developments - The military industry sector is experiencing a reduction in the trend of passive capital outflows, coupled with strong demand recovery expectations for 2025-2026, indicating a positive outlook for capital flow [1] - The current TTM price-to-earnings ratio of the Shenwan Military Industry Index is 70.35, with a percentile rank of 92.55%, suggesting a high configuration cost-effectiveness in the sector given the expected recovery in industry fundamentals [1] - The military industry is anticipated to enter a new prosperity cycle from 2025 to 2027, driven by multiple catalysts such as the 14th Five-Year Plan, the centenary of the military, and military trade development, with significant growth potential in aviation equipment and other sub-sectors [1] Group 2: Index and ETF Information - The military ETF (512660) tracks the CSI Military Industry Index (399967), which selects listed companies involved in military-related businesses such as aviation, aerospace, shipbuilding, and weaponry to reflect the overall performance of the military industry [1] - The CSI Military Industry Index covers multiple sub-sectors within the national defense and military industry, primarily composed of enterprises controlled by military groups and companies with main operations related to military affairs, providing a comprehensive representation of the military sector's performance in the A-share market [1]