Core Viewpoint - Military stocks have generally risen, indicating a positive sentiment in the defense sector, driven by recent developments in naval capabilities and the urgency for domestic aircraft engine independence [1] Group 1: Stock Performance - Companies such as AVIC (02357) saw a rise of 4.58%, trading at HKD 4.34; China Shipbuilding Defense (00317) increased by 3.38%, trading at HKD 16.23; and Continental Aerospace Technology Holdings (00232) rose by 2.24%, trading at HKD 0.137 [1] Group 2: Industry Developments - A report from Dongfang Securities highlighted that three types of carrier-based aircraft have completed their first catapult takeoff and landing training, marking a milestone in China's naval strength and expanding the influence of military equipment [1] - The U.S. Treasury Secretary indicated that engines could become a significant bargaining chip in U.S.-China negotiations, emphasizing the urgent need for self-sufficiency in domestic aircraft engines [1] Group 3: Future Outlook - The military industry has stabilized in recent weeks, with the upcoming "14th Five-Year Plan" signaling the start of a new phase in equipment construction, focusing on domestic demand and military trade [1] - The second half of the year will require attention to the upward trend in domestic demand and positive developments in military trade, highlighting the sector's investment value [1]