Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core Views of the Report - The Wanjia China Securities Aerospace and Aviation Industry ETF (159208) is an ETF product under Wanjia Fund, established on April 28, 2025, and officially listed on May 12, 2025. The current fund manager is Mr. He Fangzhou. The fund closely tracks the underlying index, aiming to minimize tracking deviation and tracking error, with a management fee rate of 0.50% and a custody fee rate of 0.10% [2][122]. - Multiple logics drive the rapid development of the aerospace industry. China is in the sprint stage of the fourth re - equipment cycle, and increasing quality and quantity are still the current demands. In the critical period of the 14th Five - Year Plan, it promotes the transformation from "point - like orders" to "linear orders", and the military's mechanization and informatization are still improving. The new era of military trade has opened a large cycle. Short - term catalysts are continuous, and the downstream demand for high - end fighter jets and aero - engines is accelerating. New formats such as the new - quality low - altitude economy are expected to drive a trillion - level market. Attention should be paid to the two core mainlines of aerospace - aviation equipment and aerospace equipment [2]. - The China Securities Aerospace and Aviation Industry Index has prominent military industry attributes, combining stable R & D, stable revenue, and high industry elasticity. It is established to reflect the price changes of relevant listed companies in the aerospace industry on the Shanghai, Shenzhen, and Beijing stock exchanges, screening large - market - capitalization stocks in the "Aerospace" industry of the China Securities third - level industry. It has strong national defense and military attributes, focusing on aviation equipment and military electronics [2]. - The fundamental characteristics of the index show a relatively high and stable R & D investment. Compared with broad - based indexes, the R & D investment ratios of several national defense and military - related indexes are significantly prominent. The R & D investment ratio of the China Securities Aerospace Index has a stable upward trend, reaching 4.53% by the end of 2024. Its net profit level is relatively stable. Compared with comparable growth indexes and military indexes, the China Securities Aerospace Index focuses on aerospace - related enterprises with heavy - asset attributes, and its net profit stability is outstanding [2]. - In terms of index investment value, its long - term performance is similar to that of the CSI Military Index, and it has shown prominent elasticity recently. Benefiting from its pure industry theme attribute, it shows high elasticity among military - related indexes during market rebound periods, and its return performance during several rebound periods has led comparable military indexes [2]. - Wanjia Fund is a public - offering fund management company established for over 22 years, with strong comprehensive strength and a leading industry ranking. Its four major businesses, including equity, fixed - income, quantitative, and portfolio investment, are developing in a balanced way, and its product line is complete. As of March 31, 2025, its total asset management scale reached 511.654 billion yuan, of which the public - offering fund management scale was 496.633 billion yuan, and it has served over 73 million investors. It has won 56 industry - authoritative awards such as the "Golden Bull Award", "Golden Fund Award", and "Star Fund Award" [2]. Group 3: Summary According to the Directory 1. Multiple Logics Driving the Rapid Development of the Industry and Grasping the Two Mainlines of Aerospace 1.1 Multiple Logics Supporting the Military Industry's Fundamentals and Its Long - term Growth Potential - **14th Five - Year Plan Promoting Performance**: China is in the sprint stage of the fourth re - equipment cycle, and increasing quality and quantity are the current core demands, which will help achieve the goal of a century - strong army in 2027. During the critical period of the 14th Five - Year Plan, military orders are gradually being fulfilled, and there is an expectation of a full - scale "surface - like order" explosion, which will support the industry's fundamentals and factory performance [8][9]. - **Initial Implementation of Military Intelligence Expanding Space**: Military mechanization and informatization are still improving, and intelligence and unmanned operations are expected to become a new trend in equipment development after 2027. Globally, military transformation is accelerating towards intelligence, with AI becoming the core variable in reshaping battlefield rules. Military robots, empowered by AI, are expected to become new combat forces on the battlefield [10][12][14]. - **New Era of Military Trade Opening a Large Cycle**: China's net military trade export volume has been steadily increasing, and there is still much room for market share growth. In 2024, the net export volume reached 1.059 billion TIV, accounting for about 4% of the global military market. In terms of military strength, China's military industry has achieved many scientific research results during the 14th Five - Year Plan, and various weapon equipment models have made new breakthroughs. In terms of diplomacy, China's improved relations with countries along the "Belt and Road" are expected to deepen military trade cooperation [16][20][25]. 1.2 Continuous Short - term Catalysts Boosting Industry Attention - The "15th Five - Year Plan" is being comprehensively planned. It runs through the period around the centenary goal of building a strong army in 2027, and the construction of the next - generation equipment system in the plan is expected to further boost industry valuations. The 80th anniversary of the victory of the Chinese People's War of Resistance against Japanese Aggression and the World Anti - Fascist War commemorative activities, especially the military parade, will be a short - term catalyst to boost military industry attention [29][33]. 1.3 New - Quality Low - Altitude Economy: A New Aviation Development Format with Trillion - Level Market Potential - The low - altitude economy is a new format in the aviation industry, with an expected scale of over one trillion yuan by 2026. Since the Central Economic Work Conference in 2023, a series of favorable policies have been introduced, promoting the development of the low - altitude economy. Currently, the main flying vehicles in the low - altitude area are industrial drones and manned aircraft, and small - scale applications of unmanned and manned aircraft have begun [36][40][47]. 1.4 Focus on the Two Core Mainlines of Aerospace - **Aviation Equipment**: The downstream demand for high - end fighter jets and aero - engines is accelerating, and the market space is expanding. Aircraft manufacturers have growth resilience, with multiple growth logics such as increasing downstream demand, model iteration, and potential for foreign trade exports. Aero - engines have high certainty of long - term stable growth, with a future market space of trillions of yuan. High - end supporting materials, such as stealth materials, are in high demand due to downstream growth and high - consumption in maintenance [55][68][73]. - **Aerospace Equipment**: In the guidance equipment sector, the missile industry chain is expected to have high elasticity, as the importance of missiles in modern warfare is increasing, and the demand for related materials and components is accelerating. In the commercial space sector, the satellite industry chain has a pyramid structure, with a huge potential market of hundreds of billions. The operation end has a large market value and significant head - concentration effect [76][82]. 2. China Securities Aerospace and Aviation Industry Index: Prominent Military Industry Attributes, Combining Stable R & D, Stable Revenue, and High Industry Elasticity 2.1 Index Compilation Method: Focusing on Stocks in the China Securities Aerospace Industry The China Securities Aerospace Index is established to reflect the price changes of relevant listed companies in the aerospace industry on the Shanghai, Shenzhen, and Beijing stock exchanges, screening large - market - capitalization stocks in the "Aerospace" industry of the China Securities third - level industry. It selects stocks from the "National Defense and Military - Aviation Equipment/Aerospace Equipment/Ground Military Equipment" and other sub - industries, with a few stocks from communication, electronics, computer, and machinery industries [92]. 2.2 Index Weight and Market - Capitalization Distribution: Strong National Defense and Military Attributes, Focusing on Aviation Equipment and Military Electronics As of July 1, 2025, the index has 50 constituent stocks, with a relatively dispersed weight distribution. The top ten and top twenty constituent stocks account for 49.42% and 70.82% respectively. It significantly focuses on the military - aviation equipment industry. The average free - floating market capitalization of its constituent stocks is 12.665 billion yuan, and the average total market capitalization is 29.859 billion yuan [95][101]. 2.3 Index Industry/Theme Characteristics: Higher Proportion of National Defense and Military Industry than Comparable Indexes, with Prominent Industry Attributes Among the constituent stocks of the China Securities Aerospace Index, 48 stocks belong to the national defense and military industry, with a weight proportion of 98.20%. It has a high concentration in a single industry, mainly in the Aviation Equipment II industry (59.93%) and military electronics (18.73%). Compared with comparable indexes, it has the highest concentration in the military industry and the most prominent industry theme attribute [106]. 2.4 Fundamental Characteristics: Relatively High and Stable R & D Investment, Relatively Stable Net Profit Level The R & D investment ratio of the China Securities Aerospace Index has a stable upward trend, reaching 4.53% by the end of 2024. Its net profit stability is outstanding. From 2021 to 2024, its net profit decreased by only about 5%, while other comparable indexes had larger declines. In the new upward cycle of the military industry, its net profit is expected to grow rapidly again [112][113]. 2.5 Index Investment Value Analysis: Similar Long - Term Performance to the CSI Military Index, with Prominent Elasticity Recently Its long - term performance is similar to that of the CSI Military Index and the Military Industry Leader Index, and it has shown high elasticity during market rebound periods. Its return performance during several rebound periods since 2022 has led comparable military indexes [116][118]. 3. Wanjia China Securities Aerospace and Aviation Industry ETF (159208) It is an ETF product under Wanjia Fund, established on April 28, 2025, and officially listed on May 12, 2025. The current fund manager is Mr. He Fangzhou. It closely tracks the underlying index, aiming to minimize tracking deviation and tracking error, with a management fee rate of 0.50% and a custody fee rate of 0.10%. It is the earliest - established and listed ETF tracking the China Securities Aerospace and Aviation Industry Index, and its recent liquidity performance is relatively prominent [122]. 4. Fund Manager and Fund Manager Information 4.1 Fund Manager Introduction Wanjia Fund is a public - offering fund management company established for over 22 years, with strong comprehensive strength and a leading industry ranking. As of March 31, 2025, its total asset management scale reached 511.654 billion yuan, of which the public - offering fund management scale was 496.633 billion yuan, and it has served over 73 million investors. It has won 56 industry - authoritative awards. Currently, it has 20 public - offering ETF products, all of which are equity - type ETFs [126][127]. 4.2 Fund Manager Introduction Mr. He Fangzhou holds an MBA from Fudan University. He has worked in positions such as the operation manager of Huatai - PineBridge Fund and the researcher of the index and futures investment department of Dacheng Fund. He joined Wanjia Fund in June 2022 and is currently a fund manager in the quantitative investment department. He currently manages 19 products, with a total non - linked product scale of 3.469 billion yuan [128].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The aerospace and defense industry is driven by multiple factors, including the 14th Five - Year Plan, the development of military intelligence, and the growth of military trade. It has long - term growth potential and short - term catalysts [3][8][11][17][32]. - The aerospace and aviation sectors are the two core areas to focus on, with increasing downstream demand in high - end fighter jets, aero - engines, and related supporting materials [40]. - The Guozheng Aerospace and Aviation Industry Index has strong industry theme attributes, high elasticity, and relatively stable fundamentals, making it a representative military - related index [3][68][83][88]. - The Aerospace and Aviation ETF Tianhong (159241) closely tracks the Guozheng Aerospace and Aviation Industry Index, with low management and custody fees, and shows good performance in terms of share growth and liquidity compared to comparable ETFs [3][94][96]. 3. Summary by Directory 3.1 Multiple Logics Driving the Rapid Development of the Industry and Grasping the Two Main Lines of Aerospace and Aviation 3.1.1 Multiple Logics Supporting the Military Fundamentals and the Industry's Long - term Growth - The 14th Five - Year Plan is in its critical period, promoting the transformation of "point - like orders" to "line - like orders", and factory performance is expected to be realized. The demand for improving quality and increasing quantity remains strong to achieve the goal of a powerful military by 2027 [8][10]. - The construction of military intelligence and unmanned systems at home and abroad is expanding the growth boundary of the military industry. Military AI is reshaping the battlefield rules, and military robots are becoming new combat forces [11][13][15]. - China's military trade net export has been increasing steadily, and there is still much room for market share growth. The military achievements during the 14th Five - Year Plan and improved diplomatic relations are conducive to the development of the military trade market [17][21][26]. 3.1.2 Short - term Catalysts Increasing Industry Attention - The "15th Five - Year Plan" is being formulated, which will promote the high - quality construction of the military industry and may increase the industry's valuation. The 80th anniversary of the victory of the Chinese People's War of Resistance against Japanese Aggression and the World Anti - Fascist War parade will be a short - term catalyst to boost the industry's attention [32][36]. 3.1.3 Focusing on the Two Core Main Lines of Aerospace and Aviation - **Aviation Equipment**: The downstream demand for high - end fighter jets and aero - engines is accelerating, and the market space is expanding. This includes aircraft manufacturers, aero - engine manufacturers, and high - end supporting materials suppliers. The future market space for military aero - engines in the next decade is estimated to be about 1.2 trillion yuan [40][52]. - **Space Equipment**: The demand for guidance equipment is increasing due to the growing importance of missiles in modern warfare. The satellite industry chain has a large market potential, with the downstream ground equipment and satellite services accounting for over 90% of the market value [59][64]. 3.2 Guozheng Aerospace and Aviation Industry Index: Focusing on Guozheng Aerospace and Aviation Industry Stocks with Strong Industry Theme Attributes and High Theme Elasticity 3.2.1 Index Compilation Method - The index is designed to reflect the stock price changes of aerospace and aviation - related listed companies in the Shanghai, Shenzhen, and Beijing stock exchanges. It selects large - market - value stocks in the Guozheng tertiary industry "Aerospace and Aviation". The sample space has certain requirements, and the selection method is based on free - floating market capitalization, with a semi - annual adjustment frequency [68][70]. 3.2.2 Index Weight and Market Value Distribution - As of July 1, 2025, the index has 50 constituent stocks, with relatively dispersed weights. It has a strong defense - military attribute, focusing on aviation equipment and military electronics. The average free - floating market capitalization is 130.75 billion yuan, and the average total market capitalization is 304.40 billion yuan [71][75]. 3.2.3 Index Industry/Theme Characteristics - The index has a high concentration in the defense - military industry, with 98.02% of the weight belonging to this industry, mainly in the aviation equipment and military electronics sectors. Compared with comparable indices, it has the highest concentration in the military industry and a more prominent industry theme [80][81]. 3.2.4 Fundamental Characteristics - The index shows a high and steadily increasing R & D investment ratio, reaching 4.53% by the end of 2024. It has strong growth attributes and relatively stable profitability compared to comparable indices. Its net profit stability is the strongest since 2022 [83][87]. 3.2.5 Index Investment Value Analysis - It is a representative military - related index with a similar long - term trend to comparable indices. It shows high elasticity during market rebound periods, outperforming comparable military indices in terms of returns during several rebounds [88][90]. 3.3 Aerospace and Aviation ETF Tianhong (159241) - The fund was established on May 21, 2025, and listed on May 29, 2025. Managed by Mr. Sha Chuan and Mr. Qi Shichao, it closely tracks the Guozheng Aerospace and Aviation Industry Index, aiming to minimize tracking deviation and error. It has a management fee of 0.50% and a custody fee of 0.10%. It has a relatively low discount rate and shows good performance in share growth and liquidity [94][95][96]. 3.4 Fund Manager and Fund Manager Information 3.4.1 Fund Manager Introduction - Tianhong Fund was established on November 8, 2004, and is a national public - offering fund management company. As of March 31, 2025, its total asset management scale is 124.3409 billion yuan, with 29 public - offering ETF products and a total ETF scale of 79.79 billion yuan [99]. 3.4.2 Fund Manager Introduction - Mr. Sha Chuan has 14 years of securities experience and manages 12 products with a total non - linked fund scale of 155.27 billion yuan. Mr. Qi Shichao has rich experience in Tianhong Fund and manages 17 products with a total non - linked fund scale of 203.69 billion yuan [100].

Core Viewpoint - The aerospace sector is experiencing significant activity, with the Aerospace ETF Tianhong (159241) showing strong performance and trading volume, reflecting investor interest in the industry [2][3]. Group 1: Market Performance - As of the latest close, the Aerospace ETF Tianhong (159241) rose by 2.21%, with a trading volume of 182 million yuan, leading its peers in both price change and trading volume [2]. - The CN5082 Aerospace Industry Index increased by 0.86%, with notable gains from constituent stocks such as Hangfa Technology (600391) up 7.57% and Guanglian Aviation (300900) up 6.41% [2]. - The Aerospace ETF Tianhong (159241) had an intraday turnover rate of 13.24%, indicating active market participation [2]. Group 2: Industry Composition - The CN5082 Aerospace Industry Index is heavily weighted towards the Chinese defense and military industry, which accounts for 99.1% of the index, significantly higher than other military-related ETF indices [2]. - The top ten weighted stocks in the CN5082 index as of April 30, 2025, include companies like Guangqi Technology (002625) and Hangfa Power (600893), collectively representing 52.89% of the index [3]. Group 3: Future Outlook - 2025 is identified as a critical year for achieving military goals and completing the "14th Five-Year Plan," with expectations for more supportive policies for the commercial aerospace industry [3]. - The space infrastructure and applications, particularly rockets and satellites, are anticipated to be key development areas under the "Aerospace Power" initiative [3]. Group 4: Investment Opportunities - The Aerospace ETF Tianhong (159241) provides investors with a convenient way to access stocks related to aerospace, domestic large aircraft, and low-altitude economy sectors, allowing them to capitalize on industry dynamics [5].

Group 1 - The aerospace sector is experiencing a slight adjustment, with the National Aerospace Index opening down by 0.88% despite a nearly 13% increase over the past seven trading days [1] - The Tianhong Aerospace ETF (subscription code: 159241) is currently being issued, with a fundraising cap of 5 billion yuan, reflecting the overall performance of the aerospace industry [1] - The index covers key companies in China's military industry, including sectors such as military, aviation, aerospace, and low-altitude economy [1] Group 2 - Commercial aerospace has become a new battleground for technology and capital, with various regions attracting and supporting commercial aerospace enterprises through policies and industrial funds [2] - The military industry is expected to see a turning point in orders by 2025, driven by new technologies and products aimed at enhancing equipment performance or reducing costs [2] - Investment recommendations include focusing on aerospace and "new technology, new products, new markets" as potential areas for greater elasticity [2]

Core Viewpoint - The aerospace and defense sector is experiencing a significant rally, with key stocks such as Chengfei and large aircraft manufacturers leading the gains, indicating a strong market sentiment in this industry [1][5]. Group 1: Market Performance - The aerospace and defense sector saw a notable increase, with the Zhonghang Chengfei stock hitting a 20% limit up, and other companies like Chenxi Aviation and Lijun Co. also showing substantial gains [1]. - The Guozheng Aerospace Index rose by 2.93%, outperforming the Zhongzheng Military Industry Index, which increased by 0.83% [1]. - The Guozheng Aerospace Index has achieved three consecutive days of gains, with a previous day increase of 4.27%, indicating a strong upward trend [1]. Group 2: ETF Issuance - The Tianhong Guozheng Aerospace ETF (subscription code: 159241) is currently being issued, with a fundraising cap of 5 billion yuan, aimed at tracking the Guozheng Aerospace Industry Index [1]. - This ETF will cover core companies in China's military industry, including sectors like military, aerospace, and low-altitude economy [1]. Group 3: Industry Outlook - The defense and military sector is expected to benefit from strong demand for core equipment such as long-range rocket artillery, driven by both domestic and foreign trade [5]. - The demand for rocket ammunition is projected to remain high due to its advantages in range, precision, and cost-effectiveness [5]. - The recovery of special equipment orders and growth in foreign trade for long-range artillery are anticipated to act as catalysts for the industry, with a significant increase in annual revenue expected [5]. - The military industry is expected to see a resurgence, supported by improving fundamentals and active themes, which will likely drive overall market performance [5]. Group 4: Market Composition - The index exhibits a small-cap style, with 38% of constituent stocks having a market capitalization below 10 billion yuan, which is significantly lower than similar indices [2].