Core Insights - The 2025 Dubai International Airshow highlighted China's aviation industry, showcasing various military and civilian aircraft, including the J-10CE, J-35A, Y-20, and the C919, marking its debut in the Middle East [3] - The military industry is experiencing a positive fundamental shift, with the military ETF (512660) rising over 2% and attracting nearly 400 million yuan in net inflows over the past 10 days [1][4] Group 1 - The Chinese exhibition at the Dubai Airshow featured significant military assets, including the J-10CE and J-35A fighter jets, as well as the Y-20 transport aircraft [3] - The C919 aircraft successfully arrived in Dubai, participating in the airshow, while a procurement agreement for 50 unmanned transport aircraft was signed with a key partner in the UAE [3] - The military ETF (512660) is the largest in its category, covering the entire military industry chain and reflecting the overall performance of listed companies in the defense sector [4] Group 2 - The defense and military construction sector is expected to see increased precision requirements during the 14th Five-Year Plan, leading to more pronounced structural differentiation [4] - High-growth investment directions are focused on precision-guided weapons, new aviation equipment, underwater equipment, and unmanned intelligence [4] - Companies that can support low-cost and high-efficiency development for the military are particularly noteworthy in the current competitive landscape [4]

Core Viewpoint - The article emphasizes the increasing precision requirements in national defense and military construction during the "14th Five-Year Plan" period, predicting a more pronounced structural differentiation in the industry [1] Industry Summary - High-growth investment areas to focus on include precision-guided weapons, new aviation equipment, underwater equipment, and unmanned intelligence [1] - The direction towards efficient, low-cost, and sustainable development necessitates selecting companies with favorable competitive landscapes and high productivity that can support low-cost and high-efficiency military development [1] Company Summary - The military ETF (512660) tracks the China Securities Military Industry Index (399967), which selects listed companies in the fields of aviation, aerospace, shipbuilding, weaponry, and military electronics from the Shanghai and Shenzhen markets [1] - The index constituents exhibit a small and mid-cap style, primarily focusing on the aviation equipment and military electronics sectors [1]