Group 1 - The core viewpoint highlights the rising demand and premium for military trade equipment, driven by the "14th Five-Year Plan", "Centenary of the Army", and "indigenous and controllable domestic substitution", indicating a strong certainty in domestic growth for the military industry [1] - The military ETF (512660) covers the entire industry chain of land, sea, air, and space, demonstrating good elasticity and defensive attributes, making it an important tool for capturing industry allocation opportunities [1] - As of September 1, 2025, the military ETF has a scale of 15.864 billion, ranking first among 12 similar products, reflecting a strong market position [1] Group 2 - The index tracked by the military ETF is the China Securities Military Industry Index, which is compiled by the China Securities Index Company, selecting representative listed companies in the defense and military industry from the Shanghai and Shenzhen markets [1] - The index covers multiple sub-sectors of the national defense and military industry, exhibiting high industry concentration and distinct military characteristics [1]

Group 1 - The A-share market experienced slight fluctuations on August 21, with the defense and military industry showing resilience despite a minor pullback. The Aerospace ETF (159227) saw a decline of 0.49% with a transaction volume of 58.92 million yuan, maintaining its position as the top performer in its category. Key holdings such as Hitec Products, AVIC Chengfei, and others showed gains [1] - The military construction plan for the "14th Five-Year Plan" is in a critical phase of capability integration delivery, with an expected acceleration in order demand leading up to 2025. The formulation and implementation of the "15th Five-Year Plan" will provide a clear development blueprint for the military industry over the next three to five years, enhancing growth certainty and industry prosperity [1] - Huafu Securities indicated that the military industry has strong domestic trade attributes, with significant growth expected from 2025 to 2027 due to multiple catalysts, including the "14th Five-Year Plan" tasks and the centenary goal of the military. This sector is less affected by tariffs and is considered a priority for future development amid current international circumstances [1] Group 2 - The Aerospace ETF (159227) tracks the Guozheng Aerospace Index, with a high military industry representation of 97.86%, focusing on the aerospace sector. The index includes leading companies across the entire industry chain, aligning with the strategic direction of "integrated aerospace" [2] - From July 31, 2024, to July 31, 2025, the Guozheng Aerospace Index achieved a return of 37.28%, outperforming the CSI National Defense Index (33.06%), CSI Military Industry Index (30.4%), and Military Leaders Index (26.78%) [2]

Group 1 - The A-share market showed a positive trend on August 19, with sectors like liquor and animal vaccines leading the gains, while the military industry sector experienced a slight decline [1] - The Aerospace ETF (159227), which has the highest military content, saw its decline expand to 1.88% by 10:36 AM, despite some of its holdings like Great Wall Military and Hailanxin rising [1] - The military sector is undergoing a minor adjustment, but the long-term positive trend remains intact due to advancements in technology and equipment showcased during military parades [1] Group 2 - The Aerospace ETF (159227) recorded a trading volume of 96.68 million yuan and a turnover rate of 10.48%, indicating active trading [1] - Over the past ten days, the ETF attracted over 117 million yuan in capital, highlighting significant investment interest [1] - According to Huafu Securities, the military sector has strong domestic trade attributes, with substantial growth expected from 2025 to 2027 driven by multiple catalysts, including the "14th Five-Year Plan" and "Centenary Goals" [1] Group 3 - The Aerospace ETF closely tracks the National Aerospace Index, focusing on core areas of military aerospace, with a high concentration of military stocks [1] - The index has a military industry representation of 97.86%, making it the highest purity military index in the market, with aerospace equipment accounting for 66.8% of its component stocks [1] - The ETF serves as an efficient tool for investing in leading military stocks and is currently the largest product tracking the National Aerospace Index [1]

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 to 12 months [73]. Core Viewpoints - The report maintains a bullish outlook on the military industry, emphasizing that despite recent adjustments, the sector remains attractive for investment. The military industry index has shown resilience, with a slight increase of 0.08% during the week of July 28 to August 1, while the Shanghai Composite Index fell by 1.75%, resulting in an outperformance of 1.83 percentage points [3][43]. - The report highlights a strong demand recovery expected in 2025, driven by various catalysts such as the "14th Five-Year Plan" and the "Centenary of the Army" goals, which are anticipated to significantly boost both domestic and foreign demand [4][43]. - The current price-to-earnings ratio (TTM) for the military industry index is 72.21, placing it in the 98.04 percentile, suggesting a high configuration value at this time [4][43]. Summary by Sections 1. Weekly Market Review - The military industry index ranked 6th among 31 primary industries, with a year-to-date increase of 14.76% compared to a 3.05% rise in the Shanghai Composite Index, resulting in an outperformance of 11.71 percentage points [9][16]. - The information technology sector within the military industry showed the best performance, with significant gains from stocks like New Light Optoelectronics and Northern Long Dragon, which rose by 29.1% and 21.69% respectively [20][22]. 2. Investment Recommendations - The report recommends focusing on four main lines of investment: 1. Domestic Trade: Companies such as Tianqin Equipment, Gaode Infrared, and others in various segments like land equipment and aircraft [4][43]. 2. Foreign Trade: Companies like Guangdong Hongda and Guorui Technology [5][45]. 3. Emerging Industries: Companies involved in nuclear fusion and commercial aerospace, including Guoguang Electric and Aerospace Power [6][46]. 3. Funding and Valuation - Passive fund inflows into military ETFs have increased, with a net inflow of 640 million yuan during the week, indicating a positive trend in funding for the sector [27][31]. - The report notes that the military sector's valuation remains attractive, with most companies expected to have valuations below 30 times earnings by 2026, supporting a favorable long-term outlook [39][34].

Core Viewpoint - The military industry ETF (512660) has seen significant inflows, with over 1.2 billion yuan net inflow in the last 10 trading days and a year-to-date share growth of over 50%, currently reaching a scale of over 16.7 billion yuan, ranking first among its peers [1] Group 1 - The military industry ETF is expected to benefit from multiple catalysts including the "14th Five-Year Plan" push, the "Centenary of the Army" goal, domestic substitution, and rapid military trade development, leading to substantial growth in both domestic and foreign demand [1] - The ETF tracks the CSI Military Index, which comprehensively covers opportunities across various sectors including land, sea, air, and space, and has shown superior defensive and offensive characteristics compared to similar indices [1] - The CSI Military Index has demonstrated strong defensive performance, with the smallest decline during weak market conditions in 2018, 2022, and 2023, particularly notable in 2023 [1] Group 2 - In 2024, the CSI Military Index is expected to rank first in terms of returns among its peers, and it has shown significant gains during bull markets in 2019 and 2020, closely following military leaders and the CSI Defense Index [1]

Core Viewpoint - The military industry is experiencing a phase of adjustment, with significant capital inflow into the aerospace sector, particularly the Aerospace ETF (159227), which has seen continuous net inflow for 13 trading days, totaling over 300 million yuan [1][2]. Group 1: Market Performance - On July 14, the three major indices showed mixed results, with the Shanghai Composite Index rising by 0.27%, while the Shenzhen Component Index and the ChiNext Index fell by 0.11% and 0.45%, respectively [1]. - The Aerospace ETF (159227) closed at 1.100 yuan with a trading volume of 72.94 million yuan, and its latest scale reached 570 million yuan, ranking first among popular ETFs [1]. Group 2: Key Developments - The China Eastern Military Industry team publicly showcased the maiden flight of the "Jiutian" drone carrier, which has a wingspan of 25 meters and a payload of 6 tons, capable of carrying 300 "Xuanbird" suicide drones for saturation attacks [2]. - The Chinese Ministry of Defense announced the first Youth Leaders Conference of the China-Africa Peace and Security Forum, set to take place in Nanjing from July 15 to 19, with participation from nearly 90 mid-level military officers from over 40 African countries [2]. - The U.S. Secretary of Defense signed a memorandum on July 10 to comprehensively reform the military drone strategy, aiming for the U.S. to dominate the small drone sector by 2027 [2]. Group 3: Institutional Insights - Huafu Securities indicated that from 2025 to 2027, driven by multiple catalysts such as the "14th Five-Year Plan" and the "Centenary Goals of the Army," both domestic and foreign demand in the military industry are expected to grow significantly, making military development a key focus for the future [3]. Group 4: Related Products - The Aerospace ETF (159227) tracks the National Aerospace Index, which has a strong military attribute, with the military industry accounting for 98.2% of its composition, and aerospace equipment holding a weight of 66.5%, significantly higher than other military indices [4].

Group 1 - The core viewpoint of the articles highlights the positive outlook for the military industry in China, driven by upcoming events such as the 80th anniversary of the victory in the Anti-Japanese War and World Anti-Fascist War, which will feature new military technologies [1] - The military sector has seen continuous net inflows of capital this year, with the military ETF (512660) experiencing a growth of over 40% in shares, reaching a current scale of over 15.7 billion yuan [3] - China's military exports have gained a global market share of 5.80% from 2019 to 2023, with approximately 60% of these exports going to Pakistan, indicating a potential for increased military trade and long-term performance improvements in the industry [4] Group 2 - The military ETF (512660) tracks the China Securities Military Index, which covers a wide range of military sectors including aviation, military electronics, and naval equipment, showcasing the overall performance of the military industry [7] - The China Securities Military Index has demonstrated defensive strength during market downturns, with the smallest declines in 2018, 2022, and 2023, and ranked first in returns among peers in 2024 [7] - The military sector is expected to benefit from increased domestic demand driven by the "14th Five-Year Plan," "Centenary of the Army," and the push for self-sufficient domestic alternatives, indicating strong positive expectations for the industry's fundamentals [8]

Group 1 - The military industry is experiencing positive catalysts, with the military ETF (512660) seeing a net inflow of over 460 million yuan in the past five days [1] - The establishment of the General Aviation and Low-altitude Economy Working Group by the Civil Aviation Administration includes six specialized working groups, covering the entire chain of general aviation and low-altitude economic development [1] - The Shanghai Stock Exchange has approved the merger plan of China Shipbuilding Industry Corporation and China Shipbuilding Heavy Industry Company, involving 115.15 billion yuan in funds and over 400 billion yuan in assets, marking a significant restructuring in the industry [1] Group 2 - The military ETF (512660) tracks the CSI Military Industry Index, which includes representative listed companies in the defense and military industry, reflecting the overall performance of the sector [2] - The index covers multiple subfields within the defense and military industry, showcasing high industry concentration and distinct military characteristics [2]

Investment Rating - The report maintains an "Outperform" rating for the defense and military industry [5]. Core Viewpoints - The upcoming military parade on September 3 is expected to showcase the latest advancements in military capabilities, including traditional and new combat forces, reflecting China's strong ability to adapt to technological developments and evolving warfare [3][46]. - The defense and military index has shown strong performance, with a 6.90% increase from June 23 to June 27, outperforming the Shanghai and Shenzhen 300 index by 4.95 percentage points [3][12]. - The report highlights a strong demand recovery expected in the military industry by 2025, driven by multiple catalysts such as the "14th Five-Year Plan" and the "Centenary of the Army" goals, suggesting significant growth in both domestic and foreign demand [4][47]. Summary by Sections 1. Weekly Market Review - The military industry index (801740) increased by 6.90% during the week of June 23-27, while the Shanghai and Shenzhen 300 index rose by 1.95%, ranking second among 31 first-level industries [12][17]. - The military industry index has risen by 8.28% since 2025, while the Shanghai and Shenzhen 300 index has decreased by 0.33%, indicating a relative outperformance of 8.61 percentage points [19]. - The aviation sector showed the most significant gains, with notable increases in specific stocks such as Zhimin Da and Hangfa Technology, which rose by 19.62% and 18.91%, respectively [23]. 2. Investment Opportunities - The report recommends focusing on three main lines of investment: domestic trade, foreign trade, and self-sufficiency [47]. - For domestic trade, suggested companies include Tianqin Equipment, Bai'ao Intelligent, and Gaode Infrared [47]. - In the foreign trade sector, companies like Guangdong Hongda and Aerospace Rainbow are highlighted [48]. - For self-sufficiency, companies involved in commercial engines and nuclear fusion, such as Hangyu Technology and Guoguang Electric, are recommended [51]. 3. Funding and Valuation - The report notes a slight increase in passive fund sizes and leverage funds, indicating a positive outlook for the military sector's funding environment [30][36]. - As of June 27, the military industry index's price-to-earnings ratio (TTM) stands at 86.67 times, suggesting a high configuration value given the expected recovery in the industry by 2025 [47][37]. - The report emphasizes that most companies in the military sector are expected to have valuations below 30 times by 2026, indicating potential for performance improvement [41].

Investment Rating - The report maintains a rating of "stronger than the market" for the defense and military industry [6] Core Viewpoints - The report expresses a bullish outlook on army equipment, driven by the recent escalation of the Israel-Iran conflict and the anticipated strong recovery in demand for the military industry by 2025 [42][11] - The military sector is expected to benefit from multiple catalysts, including the "14th Five-Year Plan" initiatives, the centenary of the military, domestic substitution, and rapid development of military trade, leading to significant growth in both domestic and foreign demand [42][11] Summary by Sections Industry Performance - The military industry index rose by 1.03% from June 9 to June 13, outperforming the CSI 300 index, which fell by 0.25%, resulting in an excess return of 1.29 percentage points [14] - Since the beginning of 2025, the military index has increased by 3.36%, while the CSI 300 index has decreased by 1.80%, leading to an excess return of 5.16 percentage points [16] Valuation and Funding - As of June 13, the military industry index has a TTM price-to-earnings ratio of 66.71, ranking in the 91.76 percentile, indicating a high configuration value [42][33] - Passive fund inflows into military ETFs increased slightly, with a net inflow of 830 million yuan during the week, although this was a decrease of 689 million yuan from the previous week [27][32] Key Investment Themes - The report recommends focusing on three main lines of investment: domestic trade, foreign trade, and self-sufficiency [42] - Suggested companies for domestic trade include Tianqin Equipment, Baiao Intelligent, and Gaode Infrared [42] - For foreign trade, companies like Guangdong Hongda and Aerospace Rainbow are highlighted [44] - In the self-sufficiency category, companies such as Aerospace Technology and Tunan Co. are recommended [44]