Core Viewpoint - Indonesia's defense ministry has signaled a clear intention to procure Chinese-made J-10C fighter jets, reflecting a strategic decision by the national leadership [1] Group 1: Strategic Decision - The procurement plan for J-10C is part of a long-term defense strategy initiated by former Defense Minister and current President Prabowo Subianto, and is being continued by the new Defense Minister Prabowo Jamsoedin [1] - The plan aims to modernize Indonesia's military and align with the national strategic framework known as the Nusantara Trident Shield [1] Group 2: Current Air Force Situation - Indonesia's air force faces significant challenges, including an aging fleet with many F-16s being decades old and a lack of operational readiness due to parts shortages for Russian Su-27/30 aircraft [1] - The air force is tasked with protecting critical international waterways and maintaining military presence in various regions, which increases the urgency for modern aircraft [1] Group 3: Procurement Challenges - Indonesia previously signed an $8.1 billion contract for 42 French Rafale jets, but issues such as long delivery times and high operational costs have raised concerns [1] - The Rafale jets are expected to take until 2030 to achieve full operational capability, which does not address immediate needs [1] Group 4: Advantages of J-10C - The J-10C offers rapid delivery within 2-3 years, filling the capability gap effectively [6] - It has a competitive price, costing only one-third of the Rafale, with lower maintenance costs [6] - The aircraft features advanced technology, including an active electronically scanned array radar and PL-15 long-range missiles, providing a significant advantage in the Southeast Asian airspace [7] - China offers a complete supply chain and after-sales support, mitigating issues related to parts shortages seen with Russian equipment [7] Group 5: Conclusion on J-10C - Despite existing contracts for other aircraft, the J-10C remains the most viable option for Indonesia, balancing the need for advanced capabilities with immediate operational requirements [9] - The J-10C is viewed as an economically viable and reliable solution for Indonesia's defense needs [9]

Group 1 - The Chengfei sector is experiencing a downturn, with *ST Lihang hitting the daily limit down [1] - Other companies such as Huaru Technology, Qifeng Precision, Huali Chuantong, Aileda, Chengfei Integration, and Quanxin Co., Ltd. are also seeing declines [1]

Core Viewpoint - The 2025 Changchun Airshow showcases the rapid development of China's aviation industry, featuring over a hundred military aircraft and ground equipment, including the debut static display of the J-20 fighter jet, attracting more than 120,000 visitors in its opening day [5][6][11]. Group 1: Event Overview - The 2025 Changchun Airshow is the largest and most comprehensive since 2019, held from September 19 to 23 at the Changchun International Aviation Expo City, with a total area of 2.358 million square meters, doubling the size of the previous event [5][7][11]. - The airshow features a variety of static displays of military aircraft, including retired models that played significant roles in historical conflicts, highlighting China's aviation and defense achievements [5][6]. Group 2: Flight Demonstrations - Flight performances by the Air Force's "August 1," "Red Eagle," and "Sky Wing" teams showcased over ten high-difficulty maneuvers, demonstrating the operational capabilities of various aircraft, including aerial refueling and ground attack [6][8]. - The J-20 and KJ-500 aircraft performed a coordinated display, emphasizing the advanced tactical capabilities of the Chinese Air Force [6]. Group 3: Technological Advancements - The airshow included a dedicated section for unmanned intelligent equipment, displaying over 200 pieces of technology related to future combat scenarios, reflecting the integration of AI in military applications [8]. - Civilian applications of these technologies were also highlighted, showcasing their use in logistics, agriculture, and urban management, indicating a trend towards military-civilian integration [8]. Group 4: Cultural and Educational Aspects - The theme "Chasing Dreams in Aerospace, Winning the Future" reflects the aspirations of generations of air force personnel, with interactive experiences designed to engage youth and foster interest in aviation [9]. - Notable figures, such as China's first female astronaut Liu Yang, participated in discussions, inspiring young attendees to pursue careers in aerospace [9]. Group 5: Infrastructure Development - The construction of the Changchun International Aviation Expo City is part of a broader initiative by local government to enhance the region's economic development and meet public demand for quality life [12][14]. - The project has been closely monitored by local supervisory bodies to ensure transparency and efficiency in its execution, highlighting the importance of governance in large-scale infrastructure projects [12][13].

Core Insights - The report emphasizes a strategy based on industry rotation and thematic ETFs, recommending sectors such as agriculture, film and cinema, and aerospace equipment for the upcoming week [2][3]. - The strategy has shown a cumulative net return of approximately -0.21% for the period from September 15 to September 19, 2025, with an excess return of about 0.16% compared to the CSI 300 ETF [3][11]. - Since October 14, 2024, the strategy has achieved a cumulative return of approximately 24.91%, outperforming the CSI 300 ETF by about 6.36% [3]. Strategy Update - For the week of September 22, 2025, the model recommends increasing positions in the following ETFs: Grain ETF, Film ETF, Industrial Mother Machine ETF, and Oil & Gas ETF, while continuing to hold Aerospace ETF and Green Electricity ETF [2][10]. - The report includes specific ETFs and their respective weights, indicating a focus on sectors like agriculture (46.77% in Grain ETF) and film (45.35% in Film ETF) [10]. Performance Tracking - The report details the performance of various ETFs over the past week, highlighting that the average return of the ETF portfolio was -0.37%, while the CSI 300 ETF had a return of -0.21% [11]. - The report also notes that certain ETFs, such as the Green Electricity ETF and Aerospace ETF, continue to be held despite recent performance fluctuations [11].

Market Performance - On September 22, the aviation equipment sector rose by 0.3%, led by Chaozhuo Aerospace Technology, which increased by 7.70% to a closing price of 57.51 [1] - The Shanghai Composite Index closed at 3828.58, up 0.22%, while the Shenzhen Component Index closed at 13157.97, up 0.67% [1] Individual Stock Performance - Notable gainers included: - Chaozhuo Aerospace Technology (688237) with a closing price of 57.51 and a rise of 7.70% [1] - Zongheng Co., Ltd. (688070) with a closing price of 54.40 and a rise of 5.88% [1] - Jialiqi (301586) with a closing price of 53.60 and a rise of 4.63% [1] - Other stocks with positive performance included: - *ST Guanqu (688287) up 2.39% [1] - AVIC Shenyang Aircraft (600760) up 2.07% [1] Fund Flow Analysis - The aviation equipment sector experienced a net outflow of 600 million yuan from institutional investors, while retail investors saw a net inflow of 670 million yuan [2] - The overall fund flow indicates a mixed sentiment, with institutional investors withdrawing capital while retail investors increased their positions [2] Detailed Fund Flow for Selected Stocks - Jialiqi (301586) had a net inflow of 29.22 million yuan from institutional investors, indicating strong interest [3] - Chaozhuo Aerospace Technology (688237) saw a net inflow of 9.21 million yuan from institutional investors, despite a slight outflow from retail investors [3] - Other stocks like *ST Guandian (688287) and AVIC Technology (600391) also showed varying levels of net inflow and outflow, reflecting diverse investor behavior within the sector [3]

Core Insights - The Chinese Air Force has made significant breakthroughs in large transport aircraft, particularly with the Y-20 series, especially the latest Y-20B model, which has achieved rapid development and mass production within two years since its debut in April 2023 [1][3]. Group 1: Development and Production - The Y-20B has reached a production scale of 10-15 aircraft per year, with satellite images showing 16 Y-20Bs stationed at a military airport, indicating that the total number of units may have surpassed 100 [1]. - The key to the rapid development of the Y-20B is the breakthrough in engine technology, transitioning from the Russian D-30KP-2 engine in the Y-20A to the domestically produced WS-20 engine, which significantly enhances performance and ensures self-sufficiency in critical technology [1][3]. Group 2: Engine Technology - The WS-20 engine, with a thrust of 16 tons, began testing on the Il-76 platform in 2014 and was first fitted on the Y-20 in November 2020, marking a significant advancement in China's aviation capabilities [3]. - The Y-20B's range exceeds 8,000 kilometers, greatly improving its strategic deployment capabilities, and its production has been confirmed by satellite imagery showing multiple units at the factory [3]. Group 3: Industry Impact - The success of the Y-20B represents a milestone for China's aviation industry, overcoming long-standing reliance on foreign engines, which has historically hindered the development of Chinese fighter jets [4]. - The successful mass production of the WS-10 and WS-20 engines signifies a comprehensive breakthrough in aviation engine technology, which will also support the development of other large aircraft like the C929 wide-body passenger plane [4]. Group 4: Competitive Landscape - Russia's aviation industry faces severe challenges due to China's engine technology advancements, which have eroded its market share, compounded by international sanctions from the Russia-Ukraine conflict [6]. - The Y-20's success underscores the importance of independent innovation, as reliance on foreign technology has proven insufficient for achieving core technological advancements [6].

Group 1 - The 2025 Changchun Airshow attracted over 90,000 visitors on its first day, showcasing China's advanced aviation capabilities [1] - The airshow featured various aircraft demonstrations, including the Y-20A, J-16, H-6, and J-20, highlighting the operational capabilities of the Chinese Air Force [1] - A demonstration of a counter-terrorism operation was conducted using the domestically developed Z-20KA helicopter and the Z-10K attack helicopter, showcasing their combat effectiveness [2] Group 2 - The innovation capacity of China's aviation industry is increasingly drawing attention, with new technologies and design concepts being presented at the airshow [3] - The advancements in aircraft and equipment not only enhance the operational capabilities of the People's Air Force but also reflect the industry's commitment to meeting real combat needs [3] - The audience's enthusiastic response to the aerial performances indicates strong public support and recognition for the achievements of the Chinese Air Force and its aviation industry [3]

Core Insights - The 11th Air Force Aviation Open Day and Changchun Air Show commenced on September 20, attracting 236,000 visitors on its first public day, showcasing the achievements of the People's Air Force in practical training and the rapid development of the aviation industry [1] Group 1: Event Overview - The event featured a static display of the J-20 fighter jet, allowing the public to observe its advanced stealth capabilities, situational awareness, and maneuverability [1] - Over a hundred types of active Air Force aircraft and ground equipment were exhibited, highlighting the capabilities of the People's Air Force in safeguarding national airspace [1] Group 2: Expert Commentary - Military expert Fu Qianshao emphasized the J-20's advanced onboard radar, infrared search and tracking system, and electro-optical aperture system, which provide comprehensive situational awareness, likening it to a small early warning aircraft [1] Group 3: Historical Context - Liu Yuan, grandson of the first commander of the Air Force, expressed emotional reflections on the evolution of the Air Force, recalling the challenges faced during its establishment, including a lack of equipment and skilled personnel [2]

Group 1 - The stock price of Jiachi Technology (688708) closed at 70.21 yuan, down 5.8% from last week's 74.53 yuan, with a market cap of 28.085 billion yuan [1] - The highest intraday price this week was 74.92 yuan on September 15, and the lowest was 68.8 yuan on September 18 [1] - Jiachi Technology ranks 11th out of 46 in the aerospace equipment sector and 664th out of 5153 in the A-share market [1] Group 2 - In the first half of 2025, Jiachi Technology reported a revenue of 278.643 million yuan, a year-on-year decrease of 24.33% [2][3] - The net profit attributable to shareholders was 113.202 million yuan, down 46.47% year-on-year [2][3] - Research and development investment increased by 88.78% year-on-year, accounting for 25.47% of total revenue [2][3] Group 3 - CITIC Securities, as the sponsor for Jiachi Technology's IPO, issued a report confirming no major issues or violations were found during the ongoing supervision [2][3] - The company has no significant changes in core competitiveness, and the use of raised funds is compliant [2]

Core Points - The 11th Air Force Aviation Open Day and Changchun Airshow showcased advanced military aircraft, including the J-20 stealth fighter, highlighting China's aerospace achievements and technological advancements [1][3][6] Group 1: J-20 Fighter Jet - The J-20 is China's first domestically developed fifth-generation stealth fighter, which has filled a gap in the country's air stealth combat capabilities after over a decade of research and development [3] - The aircraft incorporates numerous next-generation technologies and has undergone extensive testing and optimization to achieve excellent flight performance [3] Group 2: Other Aircraft and Innovations - The Z-8L transport helicopter model was displayed, featuring a 40% increase in cargo space compared to its predecessor, enabling it to perform complex transport tasks under various conditions [4] - The AEF1200 and "Taihang" series engines were showcased, emphasizing the importance of advanced aviation engines as a reflection of national technological strength [4][6] Group 3: Cultural and Historical Significance - The event reflects the dedication and perseverance of Chinese aviation professionals over decades, from early aircraft development to modern advanced fighter jets [6] - The spirit of patriotism and commitment to national defense is evident, as employees honor the sacrifices of past heroes while striving to develop advanced military aircraft [6]