Group 1 - The defense sector is experiencing upward momentum due to increased military spending and geopolitical tensions, indicating a potential upward cycle in the military trade market [2] - The National Defense ETF (512670) has risen by 1.68%, reaching a new high of 3.808 billion yuan, reflecting strong investor interest in the defense industry [2] - Major companies in the defense sector, such as AVIC Chengfei, are expected to maintain high-quality development during the current equipment upgrade phase [2] Group 2 - As of April 30, 2025, the top ten weighted stocks in the CSI National Defense Index (399973) account for 43.61% of the index, indicating concentrated investment in key players [3] - The defense sector is entering a phase of net surplus in military trade, with significant opportunities for the export of domestically developed equipment [2] - Analysts predict that the performance of the defense sector is nearing its bottom, with expectations of recovery starting in 2025, supported by a series of order announcements since late 2024 [2]