Core Viewpoint - The article highlights the successful deployment of the Chinese J-10CE fighter jet by the Pakistan Air Force, which has demonstrated combat superiority over Indian aircraft, including the French Rafale, marking a significant advancement in China's military aviation capabilities [1][2]. Summary by Sections J-10CE Fighter Jet Development - The J-10 fighter jet significantly reduced the gap between China and leading aviation powers, marking China's entry into the group of nations capable of developing fourth-generation fighter jets [2]. - In 2022, China delivered its first batch of six J-10CE jets, indicating a shift in military equipment exports from single products to comprehensive support systems [2]. Technological Advancements - The J-10CE features a canard-delta wing design, enhancing its maneuverability, and is powered by the domestically produced WS-10B "Taihang" engine, achieving over 14 tons of thrust and a maximum speed of 1.8 Mach with a range of nearly 3,400 kilometers [4][8]. - The aircraft is equipped with advanced avionics, including an active electronically scanned array (AESA) radar, which allows it to track multiple aerial targets simultaneously, significantly improving combat effectiveness compared to older radar systems [5][7]. Market Opportunities and Industry Impact - The fighter jet industry involves thousands of upstream and downstream enterprises, including major A-share companies like AVIC Chengfei, Hongdu Aviation, and AVIC Heavy Machinery, which are expected to benefit from the growing demand for military aircraft [2][10]. - The export of military equipment is anticipated to accelerate the technological advancement of the domestic industry, with companies like Hongdu Aviation reporting a 54.78% year-on-year increase in export sales [10]. - The shift from single equipment exports to comprehensive combat system exports is expected to enhance the performance of military enterprises, with the industry poised for a significant growth phase as demand increases [11].

Core Insights - The recent use of the Chinese J-10CE fighter jets by the Pakistan Air Force in border conflicts has demonstrated their combat effectiveness, successfully downing multiple Indian aircraft and gaining an advantage over French Rafale jets [1] - The development of the J-10 fighter jet has significantly narrowed the gap between China and leading aviation powers, marking China's emergence as one of the few countries capable of developing fourth-generation fighter jets [1] - The export of the J-10CE represents a shift in China's military equipment export strategy from single product output to a comprehensive support system [1] Industry Overview - The fighter jet industry involves thousands of upstream and downstream enterprises across various sectors, including aviation equipment, new materials, and precision processing, with leading A-share companies such as AVIC Chengfei (302132), Hongdu Aviation (600316), AVIC Heavy Machinery (600765), and others benefiting from this growth [1] - The J-10CE's combat capabilities are attributed to three main systems: its aerodynamic design, advanced avionics, and enhanced weapon load capacity, which collectively improve its operational effectiveness [2][3][5] - The J-10CE features a duck-billed aerodynamic layout and is powered by the domestically produced WS-10B "Taihang" engine, achieving a maximum thrust of over 14 tons and a top speed of 1.8 Mach, showcasing significant advancements over previous models [3] - The integration of an active electronically scanned array (AESA) radar allows the J-10CE to track multiple aerial targets simultaneously, enhancing its combat capabilities in medium-range air combat [4] Market Dynamics - The military trade sector is transitioning from single equipment exports to comprehensive combat system exports, with a significant order backlog exceeding 10 billion yuan, indicating an acceleration in military export performance [7] - Companies like Hongdu Aviation have reported a 547.8% year-on-year increase in export sales, validating their strategic focus on diversified platforms [7] - The A-share military sector has shown strong performance, with defense stocks leading the market, driven by improved quarterly results and expectations of a clearer performance inflection point in the second quarter [8] - The aircraft industry chain is relatively stable, while the missile industry is experiencing significant revenue growth, indicating a potential new high prosperity cycle for the industry [8]