Investment Rating - The report maintains a "stronger than the market" rating for the defense and military industry [8] Core Viewpoints - The core investment logic for commercial aerospace is to grasp the core line of rockets and explore the elastic space of satellites [45][46] - The aerospace sector is expected to perform well, driven by the strong performance of its constituent stocks [19][25] Summary by Sections Market Review - The Shenwan Military Industry Index (801740) rose by 3.05% from December 29 to December 31, while the CSI 300 Index fell by 0.59%, resulting in an excess return of 3.64 percentage points [19][20] - Since 2025, the Shenwan Military Industry Index has increased by 34.3%, outperforming the CSI 300 Index, which rose by 17.66% [20] - The aerospace sector showed strong performance, primarily due to the good performance of Aerospace Electronics [25] Rocket Sector - Both capacity and computing power are strategic high points that major countries are competing for, with China's 14th Five-Year Plan emphasizing the importance of becoming a "space power" [46] - In 2025, China is expected to conduct 92 rocket launches, while SpaceX is projected to conduct 167 launches [46] - The capital closed-loop logic indicates that domestic private rocket companies are expected to go public, enhancing their manufacturing capabilities and supporting a robust global supply chain [47] Satellite Sector - Large-scale rocket launches will accelerate the deployment of a significant number of networked satellites, with plans to launch over 38,000 satellites by major Chinese constellations [48] - The competition for space computing power between China and the U.S. is expected to expand the overall commercial aerospace market [48][50] - The trend of integrating "communication and computing" will lead to larger satellite sizes to support greater data transmission [50] Financial and Valuation Aspects - As of December 31, the TTM price-to-earnings ratio for the Shenwan Military Industry Index is 75.92, indicating a high configuration significance given the strong recovery expectations for the industry in 2026 [51] - Passive funds experienced a net outflow of 2.592 billion yuan during the week, but the expectation of strong demand recovery in the military industry is likely to lead to a return of net inflows [31][36] Recommended Companies - Rocket Sector: Western Materials, Feiwo Technology, Aerospace Power, Aerospace Intelligence [52] - Satellite Sector: Aerospace Electronics, Lens Technology, West Measurement Testing, Guangwei Composite, Tongyu Communication, Zhenyou Technology, Aerospace Hanyu [52] - Fusion Energy: Guoguang Electric, Lianchuang Optoelectronics, Hezhuan Intelligent, Wangzi New Materials, Xuguang Electronics, Aike Saibo, Yongding Co., Ltd., Hangyang Co., Ltd., Jingye Intelligent, Weiteng Electric, New Wind Light, Parker New Materials, Hongwei Technology [52]

Group 1 - Tesla announced that the global 9 millionth electric vehicle rolled off the production line at its Shanghai Gigafactory [2] - The domestically developed "Xiangyun" AS700 manned airship has received the first production license in China, marking its entry into mass production [2] - Samsung Electronics plans to achieve a monthly production capacity of 250,000 HBM wafers by the end of 2026, a 47% increase from the current capacity of 170,000 wafers [2] Group 2 - China successfully launched the Tianhui-7 satellite using the Long March 4B rocket, which is primarily used for geographic information surveying and scientific research [2]

Group 1 - China successfully launched the Tianhui-7 satellite on December 30, 2025, using the Long March 4B rocket, marking the 622nd flight of the Long March series [1] - The Tianhui-7 satellite is primarily used for geographic information surveying, land resource census, and scientific research [1] Group 2 - The Ministry of Education aims to build a self-controlled AI model for education during the 14th Five-Year Plan period, focusing on platform, data, AI tools, and policy consistency [2] - Key initiatives include advancing integrated data support systems, promoting AI in education, enhancing digital literacy among teachers and students, and contributing to global digital education governance [2] Group 3 - Huawei reported that over 36 million devices are using HarmonyOS 5.0 and above, and the Kunpeng ecosystem has developed 3.8 million developers [3] - The company has supported 60 million users with 5G-A networks and has over 1.6 million installations of the openEuler operating system [3] Group 4 - The National Development and Reform Commission and the Ministry of Finance announced continued support for the renewal of new energy city buses and power batteries in 2026 [4] - The subsidy standards will follow the guidelines established in the 2025 implementation details for new energy city buses [4] Group 5 - Qianzhao Optoelectronics announced breakthroughs in radiation resistance for its flexible space solar cell products, enhancing satellite stability in space [5] - The lightweight nature of these solar cells helps reduce satellite weight and launch costs, with a focus on expanding international market presence [5] Group 6 - XPeng Motors' CEO stated that true fully autonomous driving will arrive in 2026, skipping L3 and moving directly from L2 to L4 [6] - The Ultra version of XPeng's vehicles will achieve next-generation autonomous driving capabilities, similar to the transition seen in smartphones with the introduction of the iPhone [6] Group 7 - Four departments, including the Ministry of Industry and Information Technology, released a plan to accelerate AI applications in the automotive industry, focusing on key manufacturing processes [7][8] - The initiative aims to integrate AI in research, production, and management, and to create intelligent demonstration production lines in the automotive sector [7][8] Group 8 - The Ministry of Industry and Information Technology issued guidelines to promote the deployment of cutting-edge technologies like AI and 400G/800G optical transmission in internet exchange centers [9] - The focus is on enhancing network efficiency and smart operations while supporting the development of key technologies through collaboration among industry, academia, and research [9] Group 9 - The National Energy Administration held a meeting to discuss the construction of high-quality charging infrastructure for electric vehicles, aiming for a three-year doubling of service capacity [10] - The plan includes improving coverage in residential and rural areas and enhancing safety management in the charging infrastructure sector [10] Group 10 - The first fire power holding-type real estate ABS in China was listed on the Shanghai Stock Exchange, led by GCL Group, with a project scale of 5.46 billion yuan [11] - The funds raised will be directed towards clean energy technology research and will help optimize financial structures and support major strategic projects [11]

Core Points - The successful launch of the Tianhui-7 satellite took place on December 30, 2025, using the Long March 4B rocket from the Jiuquan Satellite Launch Center [2] - The satellite is primarily intended for geographic information surveying, land resource census, and scientific research [2] - This mission marks the 622nd flight of the Long March series of launch vehicles [4]

Group 1 - The Long March 4B rocket successfully launched the Tianhui-7 satellite into its designated orbit on December 30, marking a successful completion of the mission [1][5] - The Tianhui-7 satellite is developed by China Aerospace Science and Technology Corporation (CASC) and is primarily used for geographic information surveying, land resource census, and scientific research [2] - The Long March 4B rocket is a medium-temperature liquid three-stage launch vehicle capable of launching various types of satellites into different orbits, with a payload capacity of 2.5 tons to a 700 km sun-synchronous orbit [5][7] Group 2 - This mission represents the annual conclusion for the Long March 4 series of launch vehicles, which successfully completed a total of 7 launches throughout the year [5] - The Long March series of rockets has achieved a total of 622 launches to date [7]

Group 1 - The core message is that China successfully launched the Tianhui-7 satellite using the Long March 4B rocket, marking a successful completion of the mission [1] - The Tianhui-7 satellite is developed by the China Aerospace Science and Technology Corporation and is primarily used for geographic information surveying, land resource census, and scientific research [1] Group 2 - The Long March 4B rocket is a medium-sized, three-stage launch vehicle developed by the China Aerospace Science and Technology Corporation, capable of launching various types of satellites into different orbits [3] - The rocket has a payload capacity of 2.5 tons to a 700-kilometer sun-synchronous orbit and can perform single or multiple satellite launches [3] - This mission marks the 622nd flight of the Long March series of rockets, with the Long March 4 series completing a total of 7 successful launches in the year [3]

Core Viewpoint - The successful launch of the Tianhui-7 satellite by China on December 30, 2023, marks a significant achievement in the country's space exploration efforts, particularly in geographic information surveying and resource management [1] Group 1 - The Tianhui-7 satellite was launched using the Long March 4B rocket from the Jiuquan Satellite Launch Center [1] - The satellite is intended for tasks such as geographic information surveying, land resource census, and scientific research [1] - This mission represents the 622nd flight of the Long March series of launch vehicles [1]

Core Viewpoint - The successful launch of the Tianhui-7 satellite marks a significant achievement in China's space exploration efforts, enhancing capabilities in geographic information surveying and resource management [1] Group 1: Launch Details - The Tianhui-7 satellite was launched on December 30 at 12:12 PM from the Jiuquan Satellite Launch Center using the Long March 4B rocket [1] - This mission represents the 622nd flight of the Long March series of launch vehicles [1] Group 2: Satellite Purpose - The Tianhui-7 satellite is primarily intended for geographic information surveying, land resource census, and scientific research [1]