Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the defense and military industry [5] Core Insights - The defense and military sector has shown resilience, outperforming major indices such as the Shanghai Composite Index and the ChiNext Index during the week of December 19 to December 26, 2025, with the Shenwan Defense and Military Index rising by 6.00% [14][18] - The report highlights significant individual stock performances, with China Satellite leading with a 36.24% increase, followed by Guanglian Aviation at 32.44% [18][19] - Key announcements from companies in the sector include significant contracts and share repurchase plans, indicating active corporate strategies to enhance shareholder value and operational capacity [20] Summary by Sections 1. Defense and Military Market Review - The China Securities Military Index rose to 13,616.67 points, up 6.16%, while the China Defense Index increased to 1,816.41 points, up 5.57% during the specified week [14][15] - The Shenwan Defense and Military Index outperformed the Shanghai Composite Index, which rose by 1.88%, and the CSI 300 Index, which increased by 1.95% [14][15] 2. Key Company Announcements - Lianchuang Optoelectronics announced a share pledge and repurchase plan involving a total of 319,932,200 yuan for shares held by a major shareholder [20] - Huayin Technology signed a framework agreement worth 392,105,597 yuan for the processing of aircraft engine components [20] 3. Key Industry News - France's President Macron confirmed the initiation of a new generation aircraft carrier program with an estimated cost of 10.25 billion euros [21] - RTX's Raytheon secured a $1.7 billion contract to deliver Patriot missile defense systems to Spain [21]

证券研究报告｜基金配置周报 2025 年 12 月 22 日 海南自贸港全岛封关，可关注哪些机会？ 【20251215-20251221】 ◼ 市场回顾：上周权益市场主要指数多数收跌，科创 50 跌幅最 大，下跌 2.99%；债券市场长短端利率集体下行，其中十年期 国债下行 0.88BP，一年期国债下行 3.32BP,长短端信用利差走 势不一；基金市场中偏股基金指数周度收跌，而二级债基指数 周度收涨，中长期纯债基金指数和短期纯债基金指数也周度收 涨；申万一级行业涨跌互现，消费板块集体反弹。 ◼ 权益类产品配置策略： ➢ 事件驱动策略：（1） 2025 光伏行业年度大会召开，可关注： 嘉实低碳精选 A(017036)、长城中国智造 A (001880)和工银生 态环境 A（001245）；（2）中国光计算芯片有新突破，可关注： 博时半导体主题 A(012650)、华夏半导体龙头(016500)和工银 新兴制造 A（009707）；（3）海南自贸港全岛封关，可关注： 嘉实物流产业 A(003298)、广发睿毅领先 A(005233)和嘉实互 融精选 A（006603）。 ➢ 资产配置策略：均衡底仓+杠铃策略，杠铃 ...

Core Viewpoint - The new arms sale to Germany represents a significant opportunity for RTX, potentially yielding $350 million in operating profit, amidst a backdrop of increased defense spending in Europe due to geopolitical tensions [1][10]. Group 1: Arms Sale Details - Germany is purchasing $3.5 billion worth of missiles from RTX, specifically the SM-6 and SM-2 missile systems, which are advanced defense technologies [1][4][10]. - The Defense Security Cooperation Agency (DSCA) has notified Congress of this sale, with RTX as the principal contractor, indicating strong likelihood of approval [2][6]. - The sale includes 173 SM-6 Block I missiles and up to 577 SM-2 Block IIIC missiles, along with vertical launch systems [8]. Group 2: Financial Implications - RTX's Raytheon division generated $26.7 billion in revenue last year, with an operating profit margin close to 10%, suggesting robust financial health [9]. - The expected operating profit from the German missile sale is approximately $350 million, translating to about $0.26 per share [10]. - The average cost of the missiles indicates that Germany is paying nearly double the estimated cost for the 750 missiles, enhancing RTX's profit margins [10][11]. Group 3: Market Outlook - While the sale is expected to boost RTX's earnings, it may not be sufficient to change the stock rating from "hold" to "buy," given the current valuation and growth expectations [12][13]. - RTX's stock is priced at 35 times earnings, with a modest dividend yield of 1.6%, and analysts project a 10% annual earnings growth over the next five years [13].

Investment Rating - The industry investment rating is "Leading the Market - A" and the rating is maintained [6]. Core Viewpoints - The defense and military industry has shown a defensive stance amidst the overall market pullback, with the Shenyin Wanguo Defense and Military Industry Index outperforming major indices such as the Shanghai Composite Index and the ChiNext Index during the same period [1][14]. Summary by Sections 1. Industry Performance Review - During the week from November 14 to November 21, 2025, the China Securities Military Industry Index fell by 2.5% to 11,663.3 points, while the China Defense Index decreased by 3.16% to 1,564.16 points. The Shenyin Wanguo Defense and Military Industry Index dropped by 1.72% to 1,642.78 points. In comparison, the Shanghai Composite Index fell by 3.9% to 3,834.89 points, and the CSI 300 Index decreased by 3.77% to 4,453.61 points. The Shenyin Wanguo Defense and Military Industry Index outperformed all major indices during this period [1][14]. 2. Individual Stock Performance - The top ten performing defense and military stocks for the week included Jianglong Shipbuilding (+64.97%), Aerospace Development (+31.77%), and Tianhai Defense (+22.74%). Conversely, the worst performers included Maixinlin (-15.45%) and Tian'ao Electronics (-12.93%) [2][16]. 3. Key Company Announcements - Newyu Guoke reported a reduction in shareholding by a major shareholder, while Tianhai Defense announced a plan to reduce shares held by its second-largest shareholder. Other companies like Huanxin Technology and AVIC Shenyang Aircraft also made significant announcements regarding financial support and board meetings [3][19]. 4. Industry News - Recent news highlights include a significant drop in European defense stocks due to U.S. support for a peace plan in Ukraine, and the supply of attack drones to Ukraine by a Lithuanian startup. Additionally, the UK aircraft carrier strike group achieved "full operational capability" during NATO exercises [11][20]. 5. Investment Recommendations - The report suggests focusing on the aviation engine and turbine markets, as well as the aerospace sector and carrier-based aircraft supply chains. Specific companies to watch include Hangfa Power, Hangfa Technology, and AVIC Shenyang Aircraft [11].

Group 1: Innovation Drugs and Gold ETFs Performance - Innovation drug-themed ETFs have shown significant growth, with the top two funds, WanKe ZhongZheng HongKong Innovation Drug ETF and JingShun ChangCheng HongKong Innovation Drug ETF, reporting net value increases of 9.02% and 9.01% respectively [2] - Other innovation drug ETFs also performed well, with several exceeding an 8% increase in net value [2] - The ASCO annual meeting, scheduled for May 30 to June 3, will showcase research results from companies like BeiGene and Kelun Biotech, which is expected to attract attention from the pharmaceutical industry and investors [2] - Gold-themed ETFs also performed strongly, with six funds reporting net value increases exceeding 6% [2] Group 2: Gold Price Trends - COMEX gold prices increased by 5.35%, while London gold saw a rise of 4.86%, and SHFE gold rose by over 4% [3] - Short-term adjustments in gold prices may occur, but long-term demand for inflation hedging and safe-haven assets is expected to support gold prices [3] Group 3: Fund Flows into Defense and Military ETFs - A total of 31 ETFs saw net inflows exceeding 100 million yuan, with significant inflows into military-themed ETFs such as Huaxia Shanghai Stock Exchange Science and Technology Innovation Board 50 ETF and Fuguo Zhongzheng Military Leader ETF, each exceeding 900 million yuan [4] - The military industry is anticipated to experience a turning point in orders, driven by new technologies and products aimed at enhancing equipment performance and reducing costs [4] Group 4: Support for Technology Enterprises - Recent policies from seven departments aim to enhance credit support for technology enterprises, with a focus on early-stage investments and long-term financing for hard technology [5] - The establishment of a bond market technology board is proposed to raise long-term, low-interest funds for technological innovation [5]

Summary of Conference Call Records Industry Overview - The focus is on the defense and military industry, highlighting its investment opportunities and growth potential in the context of current market dynamics and geopolitical factors [1][2][4]. Key Points and Arguments - **Investment Style and Performance**: Short-term financial styles are performing strongly, but long-term growth styles offer better value, especially when risk appetite increases. The CSI 1,000 index is expected to yield excess returns compared to the SSE 50 index in the medium to long term [1][2]. - **Defense Spending Growth**: The defense budget has shown stable growth over the past three years, averaging around 7%, which supports the fundamentals of the military industry. Incremental funds are primarily coming from margin financing and ETFs, with a significant portion directed towards innovative growth sectors, benefiting the defense sector [1][4]. - **Market Trends**: In February, small-cap growth stocks performed exceptionally well, with the CSI 1,000 and 2000 indices showing an excess return probability exceeding 90%. The market may shift towards defensive strategies in April, but post-earnings report pressures, the performance of the 1,000 and 2000 indices is expected to improve [1][5][7]. - **High-Performing Sectors**: The defense and military sector has the highest median excess return rate of 3% over the past 15 years, outperforming other sectors such as agriculture, non-ferrous metals, and food and beverage [1][8]. - **Investment Logic**: Key investment drivers in the defense sector include internal demand recovery, asset securitization, and the competitive landscape improvement due to mergers. The ongoing US-China rivalry is also fostering technological advancements and self-sufficiency [1][10][11]. Additional Important Insights - **Focus Areas for 2025**: The defense sector is expected to continue its strategy of "internal growth plus external expansion," emphasizing new combat capabilities and production capacities, particularly in shipbuilding, aerospace, and commercial space sectors [2][11]. - **Emerging Technologies**: The commercial space sector is anticipated to enter a phase of intensive testing for reusable rockets, with significant advancements expected in the second half of the year [12]. The low-altitude economy is also gaining traction, supported by government policies and market interest [13][26]. - **Market Dynamics**: The military electronics sector is projected to see a turnaround in profitability by the second quarter of 2025, driven by increased orders and a recovery in market conditions [15][28]. The military trade sector is also expected to benefit from changing geopolitical landscapes [18]. - **Investment Recommendations**: Key investment targets include companies in shipbuilding, aerospace, drones, and military electronics, with specific mentions of firms like China Shipbuilding, AVIC, and North Navigation [16][25]. Conclusion The defense and military industry presents a robust investment landscape characterized by stable government spending, emerging technologies, and strategic growth opportunities. Investors are encouraged to focus on sectors with high growth potential and favorable market conditions, particularly in light of geopolitical developments and domestic demand recovery.