Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Viewpoints - The continuous development of AI technology is transitioning military applications from single-function assistance to full-system intelligence, indicating a rapid acceleration in China's military informationization process, benefiting the entire industry chain [2][11] - The recent exhibitions at the Beijing Military Expo and Police Equipment Expo showcased over 3,000 items from more than 500 participating companies, highlighting advancements in command information systems, unmanned combat equipment, and cybersecurity [11] - The report suggests focusing on investment opportunities in the following areas: 1) Intelligent unmanned combat systems; 2) National defense informationization and electronic countermeasures; 3) Network and electromagnetic space confrontation [2][11] Summary by Sections Event Description - The 12th China International Police Equipment Expo and the 10th China (Beijing) Military Intelligent Technology Equipment Expo were held from May 14 to 17 and May 15 to 17, respectively, showcasing advancements in military and police equipment [5] Event Commentary - The exhibitions demonstrated China's ongoing enhancement of new combat capabilities, with a significant focus on AI and robotics reshaping warfare and equipment systems [11] - The report emphasizes that the integration of AI technologies is crucial for advancing military informationization, with the U.S. military's JADC2 system serving as a benchmark for real-time command across domains [11] - The introduction of China's new AI model, DeepSeek-R1, which rivals top U.S. models at a significantly lower training cost, is expected to lower barriers for AI research and application in military contexts [11]