Industry Investment Rating - The report maintains a "stronger than the market" investment rating for the defense and military industry [6]. Core Insights - The report emphasizes that artillery remains crucial in modern warfare, as demonstrated by the Russia-Ukraine conflict, where artillery has proven to be an effective long-range strike method [2][36]. - The global artillery market is projected to grow at a compound annual growth rate (CAGR) of 4.3%, increasing from a current market value of $11.4 billion to $17.3 billion by 2034 [2][39]. - The domestic artillery market in China is expected to thrive due to increased military training and export demands, with an estimated market size of approximately 12 billion yuan [3][49]. Summary by Sections 1. Artillery Classification and Composition - Artillery ammunition includes various types such as shells, grenades, and missiles, with artillery being referred to as the "god of war" due to its enduring significance [13]. - Shells are categorized based on caliber, assembly relationship, loading method, and stability method, with various types including small, medium, and large caliber shells [17][21]. 2. The Return of the "God of War" - The Russia-Ukraine war has highlighted the importance of artillery, with significant artillery usage reported, including the U.S. supplying over 1 million rounds to Ukraine [36][37]. - The report indicates that the global artillery market is driven by ongoing geopolitical tensions, particularly in Europe, leading to increased procurement of advanced artillery systems [39][40]. 3. Domestic Related Enterprises - Key players in China's artillery production include the China Ordnance Industry Group and the China Ordnance Equipment Group, with various listed companies involved in ammunition production [50][52]. - The report identifies several companies such as Tianqin Equipment and Beihua Co., which are significant contributors to the artillery and ammunition market in China [3][50].