Investment Rating - The report maintains an investment rating of "Outperform the Market" [5] Core Viewpoints - The defense and military industry indices experienced a decline, with the market showing signs of a rising gas turbine trend [1][19] - The report highlights significant individual stock performances, with notable gains in companies like Wanzhe Co. (+30.27%) and Triangle Defense (+25.28%) [2][18] - Triangle Defense's recent agreements with Siemens Energy mark a critical step in entering the global high-end energy equipment supply chain, aligning with the current high demand in the gas turbine sector [19][20] Summary by Sections 1. Defense and Military Market Review (2025/10/31-2025/11/07) - The China Securities Military Industry Index fell by 0.63% to 12,208.96 points, while the China Defense Index decreased by 0.86% to 1,645.80 points. The Shenwan Defense and Military Industry Index dropped by 0.47% to 1,708.35 points [1][12] - In comparison, the Shanghai Composite Index rose by 1.08% to 3,997.56 points, indicating that the Shenwan Defense and Military Industry Index underperformed against major indices [12][13] 2. Key Announcements in the Military Industry - Triangle Defense signed a gas turbine project development agreement with Siemens Energy, which is expected to enhance its position in the high-end energy equipment market [19][20] - Other companies, such as Guorui Technology, reported a revenue of 2.118 billion yuan, a year-on-year increase of 6.68%, and a net profit of 373 million yuan, up 1.15% [21] 3. Key Industry News - Rheinmetall and Leonardo's joint venture secured a contract to produce 21 A2CS armored vehicles for the Italian Army, with a total project scale of 1,050 vehicles [22] - The European Union reached a preliminary agreement to enhance defense-related investments, allowing existing budget projects to support defense and dual-use technologies more effectively [22]