Market Overview - The ground armament sector experienced a decline of 0.58% on November 10, with North China Long Dragon leading the drop [1] - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] Stock Performance - Notable stock performances in the ground armament sector included: - Galaxy Electronics (002519) closed at 4.78, up 1.27% with a trading volume of 209,800 shares and a turnover of 100 million yuan [1] - Zhongbing Hongjian (000519) closed at 18.34, up 0.94% with a trading volume of 247,200 shares and a turnover of 451 million yuan [1] - North China Long Dragon (301357) closed at 144.00, down 5.31% with a trading volume of 55,500 shares and a turnover of 807 million yuan [2] Capital Flow - The ground armament sector saw a net outflow of 463 million yuan from institutional investors, while retail investors had a net inflow of 544 million yuan [2] - The capital flow for individual stocks showed varied trends, with Zhongbing Hongjian experiencing a net inflow of 4.53 million yuan from institutional investors [3] Individual Stock Capital Flow - Galaxy Electronics had a net outflow of 213,890 yuan from speculative funds but a net inflow of 193,360 yuan from retail investors [3] - North China Long Dragon faced a significant net outflow of 25.86 million yuan from institutional investors, while retail investors contributed a net inflow of 248,670 yuan [3] - Inner Mongolia First Machinery (600967) had a net outflow of 92.24 million yuan from institutional investors, with a substantial net inflow of 103 million yuan from retail investors [3]

Market Overview - The ground equipment sector experienced a decline of 1.52% on November 7, with North China Long Dragon leading the drop [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Stock Performance - Notable stock performances in the ground equipment sector included: - Zhongbing Hongjian (000519) closed at 18.17, up 0.22% with a trading volume of 171,100 shares and a transaction value of 310 million yuan - North China Long Dragon (301357) closed at 152.08, down 4.71% with a trading volume of 58,300 shares and a transaction value of 892 million yuan - Changcheng Military Industry (601606) closed at 48.80, down 3.40% with a trading volume of 357,700 shares and a transaction value of 1.753 billion yuan [1][2] Capital Flow - The ground equipment sector saw a net outflow of 594 million yuan from institutional investors, while retail investors contributed a net inflow of 553 million yuan [2] - The capital flow for individual stocks showed varied trends, with Zhongbing Hongjian experiencing a net inflow of 16.7755 million yuan from institutional investors, while North China Long Dragon faced a net outflow of 35.4555 million yuan [3]

Summary of Defense Industry Conference Call Industry Overview - The defense industry experienced a revenue growth slowdown to 0.02% in the first three quarters of 2025, with profit growth lagging behind revenue growth, primarily due to military product order recovery, price adjustments, fixed cost allocation, and accounts receivable impairment [1][2][12] - The industry achieved a revenue of 450.8 billion yuan, ranking 25th among 31 primary industries, with a revenue growth rate of 6.74%, ranking 6th [2] Subsector Performance - **Aerospace Equipment**: Revenue declined by 1.8%, and profit decreased by 16% [3] - **Marine Equipment**: Revenue increased by 16.2%, with net profit rising by 87% [3] - **Military Electronics**: Revenue grew by 11%, but profit fell by 7% [3] - **Ground Armaments**: Revenue increased by 21%, and profit grew by 39% [3] - **Aerospace Equipment**: Revenue increased by 7%, but net profit dropped by 44% [3] - Overall, except for aerospace equipment, other subsectors showed varying degrees of order recovery and improved inventory turnover efficiency [3][8] Profitability and Cost Management - Military electronics had the highest gross margin, which fell from 36.8% in 2024 to 23.8% in 2025 [5] - All subsectors, except marine equipment, experienced a decline in gross margins, indicating a need to monitor the impact of declining margins on profitability [1][5] - Significant reductions in expense ratios across all subsectors demonstrate effective cost control [5] Contract Liabilities and Prepayments - As of Q3 2025, contract liabilities and prepayments increased in all subsectors except aerospace equipment, which saw a decline due to its cyclical nature [6] - Ground armaments saw a 19% increase, marine equipment 7%, aerospace equipment 8%, and military electronics 18% [6] Inventory Turnover - Average inventory turnover days decreased in all subsectors except aerospace equipment, which increased to 341 days from 323 days year-on-year [7] Future Outlook - The defense industry is expected to benefit from increased domestic military demand driven by national security needs and the implementation of the "15th Five-Year Plan" [12] - China's share in international military trade is anticipated to expand, potentially enhancing corporate revenues and profitability [12] - Key areas for investment include military trade, commercial aerospace, unmanned systems, and low-altitude economy-related enterprises [12]

Market Overview - The ground equipment sector increased by 0.25% compared to the previous trading day, with North China Long Dragon leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - North China Long Dragon (301357) closed at 159.60, with a rise of 3.74% and a trading volume of 74,600 shares, amounting to a transaction value of 1.176 billion [1] - North Navigation (600435) closed at 14.15, up 1.58%, with a trading volume of 210,100 shares and a transaction value of 297 million [1] - Other notable stocks include: - Optical Electronics (600184) at 17.50, up 1.10% [1] - Inner Mongolia First Machinery (600967) at 18.49, up 0.33% [1] - Great Wall Military Industry (601606) at 50.52, up 0.16% [1] - National Science and Technology Industry (688543) at 51.69, up 0.08% [1] - China Ordnance Arrow (000519) at 18.13, down 0.06% [1] - Galaxy Electronics (002519) at 4.71, down 0.21% [1] - GanHua Science and Technology (000576) at 10.69, down 0.37% [1] - ST Emergency (300527) at 8.33, down 0.48% [1] Capital Flow - The ground equipment sector experienced a net outflow of 73.5077 million from institutional investors, while retail investors saw a net inflow of 83.2262 million [2] - The capital flow for individual stocks shows: - North China Long Dragon had a net inflow of 97.2332 million from institutional investors [3] - North Navigation saw a net inflow of 15.2866 million from institutional investors [3] - ST Emergency experienced a significant net outflow of 18.6203 million from institutional investors [3] - Galaxy Electronics had a net outflow of 8.9664 million from institutional investors [3]

Investment Rating - The report suggests increasing attention to the military industry, particularly focusing on elastic and thematic varieties [4][5]. Core Viewpoints - The military industry is experiencing significant changes at the margin, with overall revenue and performance needing recovery. The industry saw a year-on-year revenue decline of 1.68% and a net profit decline of 10.95% for Q1-Q3 2025 [4][5]. - The report highlights a divergence in performance across different equipment sectors, with ground equipment showing a revenue growth of 18.2%, while naval equipment and aerospace equipment experienced declines of 8.4% and 1.7%, respectively [4][5]. - The report emphasizes that the military industry's operational indicators are showing stable growth, indicating a sustained industry outlook [4][5]. Summary by Sections 1. Industry Performance - The military industry’s revenue for Q1-Q3 2025 was 483.6 billion, reflecting a year-on-year decrease of 1.68%. The net profit for the same period was 24.5 billion, down 10.95% [23][26]. - The performance across different sectors is mixed, with ground equipment and naval equipment showing contrasting trends in revenue and profit growth [4][5]. 2. Profitability Indicators - The overall gross margin and net margin for the military industry were 18.04% and 5.07%, respectively, indicating a slight decline in profitability [28]. - The military electronics sector maintained a higher profitability level compared to other sectors, which experienced minor fluctuations [4][5]. 3. Operational Indicators - Key operational metrics such as inventory, accounts payable, and contract liabilities showed year-on-year increases of 13.19%, 30.96%, and 30.96%, respectively, indicating stable growth in operational indicators [31]. - The report notes that the military industry is well-positioned to meet future demand, with significant pre-receivables and contract liabilities suggesting a robust outlook for the next 3-5 years [31]. 4. Revenue and Profit Analysis - The aviation sector contributed the most to the industry’s revenue and net profit, accounting for 46% and 58%, respectively, in Q1-Q3 2025 [44]. - The report identifies a notable performance in the naval equipment sector, with 62.5% of companies in this area reporting profit increases [51]. 5. Key Investment Targets - The report recommends focusing on high-end combat capabilities and new quality combat capabilities, highlighting specific companies such as AVIC Shenyang Aircraft Corporation and Ziguang Guowei as key targets for investment [4][5].

Industry Overview - The military industry shows overall stability, with potential turning points emerging. Future growth is expected to be driven by the 14th Five-Year Plan and the 2027 centenary goal for military strength [1] - Key sectors such as nuclear fusion and commercial aerospace are rapidly growing, presenting investment opportunities [1] Military Industry Performance - In Q3 2025, the military industry achieved a revenue of 196.53 billion yuan, a year-on-year increase of 60.3% [4] - The net profit for the same quarter was 10.686 billion yuan, reflecting a year-on-year growth of 88.8% [5] - The gross profit margin and net profit margin for Q3 2025 were 16.70% and 5.44%, showing a year-on-year decrease of 3.31 percentage points and an increase of 0.81 percentage points, respectively [6] Naval Equipment - Naval equipment generated a revenue of 73.96 billion yuan in Q3 2025, up 84.8% year-on-year [10] - The net profit for this segment was 4.839 billion yuan, marking a significant year-on-year increase of 230.3% [10] - The gross profit margin and net profit margin were 13.49% and 6.54%, with year-on-year increases of 0.83 percentage points and 2.88 percentage points, respectively [10] - Contract liabilities at the end of Q3 2025 stood at 155.897 billion yuan, a year-on-year increase of 7.2% [10] Aerospace Equipment - Aerospace equipment reported a revenue of 57.787 billion yuan in Q3 2025, reflecting an 11.1% year-on-year increase [15] - The net profit for this segment was 3.078 billion yuan, down 4.3% year-on-year [15] - The gross profit margin and net profit margin were 17.59% and 5.33%, with year-on-year decreases of 1.17 percentage points and 0.86 percentage points, respectively [15] - Contract liabilities at the end of Q3 2025 were 33.128 billion yuan, a decrease of 5.7% year-on-year [18] Aerospace Equipment - Aerospace equipment achieved a revenue of 5.975 billion yuan in Q3 2025, a year-on-year increase of 80.1% [20] - The net profit for this segment was 247 million yuan, down 40.6% year-on-year [20] - The gross profit margin and net profit margin were 15.86% and 4.13%, with year-on-year decreases of 16.53 percentage points and 8.4 percentage points, respectively [20] - Contract liabilities at the end of Q3 2025 were 4.430 billion yuan, up 8.0% year-on-year [20] Military Electronics - Military electronics reported a revenue of 52.738 billion yuan in Q3 2025, a significant year-on-year increase of 142.5% [25] - The net profit for this segment was 2.313 billion yuan, reflecting a year-on-year increase of 312.7% [25] - The gross profit margin and net profit margin were 19.96% and 4.39%, with year-on-year decreases of 14.98 percentage points and an increase of 1.81 percentage points, respectively [25] - Contract liabilities at the end of Q3 2025 were 15.831 billion yuan, a substantial year-on-year increase of 140.4% [25] Ground Armaments - Ground armaments achieved a revenue of 6.071 billion yuan in Q3 2025, a year-on-year increase of 10% [30] - The net profit for this segment was 209 million yuan, showing a remarkable year-on-year increase of 808.8% [30] - The gross profit margin and net profit margin were 19.82% and 3.44%, with year-on-year increases of 0.98 percentage points and 3.02 percentage points, respectively [30] - Contract liabilities at the end of Q3 2025 were 3.724 billion yuan, a year-on-year increase of 17.4% [31]

11月4日，长城军工盘中上涨2.01%，截至09:58，报52.34元/股，成交5.38亿元，换手率1.44%，总市值 379.06亿元。 资金流向方面，主力资金净流出781.54万元，特大单买入2461.98万元，占比4.57%，卖出2414.81万元， 占比4.49%；大单买入8781.50万元，占比16.32%，卖出9610.21万元，占比17.86%。 长城军工所属申万行业为：国防军工-地面兵装Ⅱ-地面兵装Ⅲ。所属概念板块包括：国资改革、军民融 合、融资融券、航天军工、基金重仓等。 今年以来长城军工已经18次登上龙虎榜，最近一次登上龙虎榜为10月15日，当日龙虎榜净买入-1.76亿 元；买入总计3.15亿元 ，占总成交额比6.29%；卖出总计4.91亿元 ，占总成交额比9.81%。 资料显示，安徽长城军工股份有限公司位于安徽省合肥市包河区山东路508号，成立日期2000年11月16 日，上市日期2018年8月6日，公司主营业务涉及对子公司军品和民品的科研、生产与销售进行管理。主 营业务收入构成为：装备制造69.14%，民品28.60%，其他2.25%。 截至9月30日，长城军工股东户数18.27万，较 ...

Market Overview - The ground equipment sector experienced a decline of 0.23% on November 3, with North Navigation leading the drop [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] Stock Performance - Notable gainers included: - Jieqiang Equipment (300875) with a closing price of 48.00, up 1.98% [1] - Galaxy Electronics (002519) at 4.69, up 1.30% [1] - ST Emergency (300527) at 8.41, up 0.96% [1] - Notable decliners included: - North Navigation (600435) at 14.17, down 1.05% [2] - Inner Mongolia First Machinery (600967) at 18.65, down 0.75% [2] - Optical Electric Co. (600184) at 17.73, down 0.67% [2] Capital Flow - The ground equipment sector saw a net outflow of 164 million yuan from institutional investors, while retail investors had a net inflow of 95.17 million yuan [2] - The sector's capital flow details indicate: - North Navigation had a net outflow of 27.13 million yuan from institutional investors [3] - Galaxy Electronics experienced a net inflow of 664.92 million yuan from retail investors [3] - Optical Electric Co. saw a significant net outflow of 22.51 million yuan from institutional investors [3]

Core Viewpoint - Northern Navigation's stock has experienced fluctuations, with a notable decline of 2.03% on November 3, 2023, and a year-to-date increase of 44.05% [1][2] Financial Performance - For the period from January to September 2025, Northern Navigation achieved a revenue of 2.468 billion yuan, representing a year-on-year growth of 210.01%, and a net profit attributable to shareholders of 125 million yuan, up 268.83% year-on-year [2] - Cumulatively, the company has distributed 603 million yuan in dividends since its A-share listing, with 150 million yuan distributed over the past three years [3] Stock Market Activity - As of November 3, 2023, Northern Navigation's stock price was 14.03 yuan per share, with a total market capitalization of 21.204 billion yuan [1] - The stock has seen a net outflow of 22.62 million yuan from major funds, with significant selling pressure observed [1] - The company has appeared on the "Dragon and Tiger List" twice this year, with the most recent instance on September 3, 2023, showing a net buy of -21.40 million yuan [1] Shareholder Structure - As of October 20, 2023, Northern Navigation had 151,000 shareholders, with an average of 10,008 circulating shares per person, reflecting a slight decrease [2] - The top ten circulating shareholders include notable funds such as the Fortune China Securities Military Industry Leader ETF and Guotai Junan National Security Mixed Fund, with varying changes in their holdings [3]

Investment Rating - The report maintains an "Accumulate-A" rating for the company [6] Core Views - The company has shown a profit margin improvement driven by automation and military trade growth, despite a slight decline in revenue and net profit in Q3 2025 [4][5] - The company is actively expanding its presence in the high-end military trade market, leveraging geopolitical tensions to enhance demand for its products [5] Financial Performance Summary - For the first three quarters of 2025, the company reported revenue of 7.894 billion yuan, a year-on-year increase of 11.07%, and a net profit attributable to shareholders of 386 million yuan, up 6.18% year-on-year [2] - In Q3 2025, the company achieved revenue of 2.167 billion yuan, a decrease of 6.59% year-on-year, with a net profit of 96 million yuan, down 3.85% year-on-year [4] - The company improved its gross margin by 0.57 percentage points to 14.77% and net margin by 0.17 percentage points to 4.47% in Q3 2025 [4] Market Position and Strategy - The company is focusing on the development of unmanned intelligent combat capabilities and actively exploring military trade markets, transitioning from mid-to-low-end products to high-end offerings [5] - The company has successfully upgraded its military trade products, achieving significant results in new market expansions, which is expected to enhance its foreign trade performance [5] Earnings Forecast - The expected EPS for 2025, 2026, and 2027 are 0.41, 0.49, and 0.56 yuan respectively, with corresponding PE ratios of 46.6, 39.8, and 34.6 based on the closing price of 19.34 yuan on October 29 [6]