Core Viewpoint - The aerospace industry in China is experiencing unprecedented development opportunities driven by strong demand growth and accelerated innovation, with the market size expected to exceed 2 trillion yuan by 2024 [1] Group 1: Industry Growth and Demand - The aerospace industry is positioned as a strategic foundation for national security amid global geopolitical tensions, with China's defense budget projected to reach 1.81 trillion yuan by 2025, maintaining a growth rate of 7.2% for three consecutive years [1] - Key growth engines in the aerospace sector include commercial aerospace, commercial aircraft, and low-altitude fields, reflecting a robust demand landscape [1] - The demand side is characterized by the upgrading of defense equipment, the rise of emerging fields, and the expansion of global markets, all contributing to strong demand [1] Group 2: Supply Side Transformation - The supply side is undergoing profound changes with accelerated breakthroughs in technological self-innovation, continuous policy benefits, and enhanced collaborative effects within the industry chain [1] - The interaction between supply and demand is fostering a new landscape for high-quality development in the industry, significantly improving efficiency and competitiveness [1] Group 3: Investment Opportunities - The aerospace industry presents long-term value opportunities for the capital market, driven by technological breakthroughs and policy support, leading to significant characteristics such as industry chain collaboration, market demand expansion, and efficiency improvements [2] - Military state-owned enterprises are enhancing asset securitization rates through reforms, while private companies focus on flexible manufacturing and commercial aerospace, rapidly capturing market share in niche areas [2] - The dual-use technology transformation is creating new growth points, with military technologies extending into sectors like new energy vehicles and high-end equipment, broadening application spaces [2] - As the global aerospace industry enters a new expansion cycle, China's industry penetration and added value are expected to continue rising, with a focus on leading enterprises that have deep technological moats and clear capacity releases [2]