Core Insights - The Fujian aircraft carrier has officially entered service, marking a significant step in China's naval capabilities and operational strategy [1] Group 1: Deployment and Operational Strategy - Key deployment areas for the Fujian include the Taiwan Strait, South China Sea, and Western Pacific [1] - The Fujian's operational capabilities are characterized by a shift towards real combat readiness, distinguishing it from previous carriers like the Liaoning and Shandong [1] - The Fujian is expected to enhance China's long-range defense capabilities, necessitating operations in the Eastern Pacific, Indian Ocean, and Atlantic Ocean [1] Group 2: Technological Advancements - The Fujian's improved performance allows for longer deployment durations at the same operational distances compared to earlier carriers [1] - The introduction of the Fujian marks the beginning of regular aircraft carrier deployments, with future models (001, 002, 003) representing different classes rather than mere serial numbers [1] - The integration of electromagnetic catapults and multiple types of carrier-based aircraft is becoming standard for Chinese aircraft carriers [1] Group 3: Future Developments - As the number of aircraft carriers increases, China aims to establish a sustained naval presence at strategic points, effectively transforming carriers into "mobile maritime fortresses" [1]

Core Insights - The defense and military industry index experienced a decline of -0.42% over the past week, ranking 13th out of 31 in the Shenwan primary industry classification [5][9] - Over the past month, the index fell by -9.03%, ranking last at 31st out of 31 [5][10] - In the past year, the index has increased by 40.43%, ranking 10th out of 31 [5][15] - The current PE-TTM for the defense and military industry is 84.84, which is at the 77.44th percentile compared to the past decade [5][15][16] Industry and Stock Performance Review Industry Performance - The defense and military industry index's performance over the past week, month, and year shows significant fluctuations, with a notable annual increase [5][9][15] - The industry is currently facing a high valuation level, with the PE-TTM at a historical relative high [5][15] Stock Performance - Top-performing stocks in the defense and military sector over the past week include: - Xingwang Yuda (11.84%) - Aerospace Electronics (7.76%) - Sichuan Chuangxin (4.77%) [5][20] - Conversely, the worst-performing stocks include: - Jinxin Nuo (-5.70%) - Torch Electronics (-5.75%) - Hongyuan Electronics (-5.88%) [5][20] Funding Data Tracking - The total transaction volume for the defense and military industry reached 257 billion yuan this week, representing an 88.28% increase year-on-year but a decrease of 8.22% week-on-week [5][34] - The military ETF fund shares increased by 2.12% compared to last week and 82.40% compared to last year [5][37] Industry News - The successful training of three types of carrier-based aircraft on the Fujian ship marks a significant milestone for China's naval capabilities [5][46] - The U.S. has indicated that aircraft engines and components may become important bargaining chips in negotiations with China, highlighting the strategic importance of the aviation industry [5][45] Investment Recommendations - Suggested investment focuses include: - Aviation engines: Companies like Wanzhe Co., Parker New Materials, and others [5][46] - Military trade: Companies such as Hongdu Aviation and others [5][46] - Commercial aerospace: Companies like Aerospace Power and others [5][46] - Aircraft carrier supply chain: Companies such as Guorui Technology and others [5][46] - Military AI: Companies like Guanshang Technology and others [5][46]

Core Viewpoint - The U.S. military has commenced "Field Carrier Landing Practice" (FCLP) at the Marine Corps Air Station Iwakuni in Yamaguchi Prefecture, marking the first such training in 25 years since September 2000 [1] Group 1 - The training is scheduled to continue until the end of this month, specifically until the 26th [1] - Iwakuni City has consistently opposed the training at the base and has previously requested the Japanese government and U.S. military to halt such plans [1]

Core Viewpoint - The article highlights the significant advancements in the Chinese military's weaponry and equipment, showcasing a range of domestically produced main battle equipment during the recent military parade, emphasizing the modernization and strategic capabilities of the armed forces [3][7]. Group 1: Characteristics of the Military Parade - The parade featured new-generation fourth-generation equipment as the main focus, including new tanks, carrier-based aircraft, and fighter jets, organized by combat modules to demonstrate the military's system combat capabilities [6]. - All displayed weaponry was current, domestically produced main battle equipment, reflecting a shift towards self-reliance in military technology [7]. - A selection of unmanned intelligent systems and anti-drone equipment, as well as new capabilities in cyber and electronic warfare, were showcased, highlighting the military's new domain and qualitative combat power [9]. Group 2: Advanced Equipment Displayed - The parade prominently featured advanced equipment such as hypersonic weapons, air defense systems, and strategic missiles, showcasing the military's strong strategic deterrence capabilities [11]. - The displayed weaponry demonstrated high levels of information technology and intelligence, indicating the military's adaptation to technological advancements and evolving warfare forms [11]. Group 3: Parade Structure and Significance - The military parade lasted approximately 70 minutes and was divided into two main segments, with 45 formations participating [13]. - The parade included various formations such as aerial flag-guarding teams, foot troops, battle flag teams, equipment teams, and aerial teams, sequentially passing through Tiananmen Square [13]. - The event marked the first military parade aimed at advancing Chinese-style modernization and showcased the new structure of military forces under the leadership of the Communist Party [21].

Core Viewpoint - The article highlights the significant advancements in the military's weaponry and equipment, showcasing a historic achievement in the development of domestically produced main battle equipment during a recent military parade [1][2]. Group 1: Characteristics of the Displayed Equipment - The main focus of the parade was on new-generation fourth-generation equipment, including new tanks, carrier-based aircraft, and fighter jets, organized by combat modules to demonstrate the military's system combat capabilities [4]. - A selection of land, sea, and air series of unmanned intelligent and anti-unmanned equipment, as well as new types of forces such as network-electronic warfare, were showcased, including new drones, directed energy weapons, and electronic jamming systems, highlighting the military's new domain and quality combat power [6]. - A number of advanced equipment, including hypersonic, air defense, missile defense, and strategic missiles, were prominently displayed, emphasizing the military's strong strategic deterrence capabilities [8].

Core Insights - The military has achieved significant advancements in weaponry and equipment, showcasing a historic development in its capabilities with a focus on domestically produced main battle equipment [1] - A large proportion of the showcased new equipment represents the evolution of modern warfare, highlighting the increasing importance of new domains and qualitative forces [1] Group 1: Characteristics of the Displayed Equipment - The main focus is on new-generation fourth-generation equipment, including new tanks, carrier-based aircraft, and fighter jets, organized by combat modules to demonstrate the military's system combat capabilities [2] - A selection of land, sea, and air series of unmanned intelligent and anti-unmanned equipment, as well as new types of forces such as directed energy weapons and electronic jamming systems, were showcased to highlight the military's new domain and qualitative combat power [3] - A number of advanced equipment, including hypersonic, air defense, anti-missile, and strategic missiles, were prominently displayed, demonstrating the military's strong strategic deterrence capabilities [4]

Group 1 - The article highlights the upcoming commemoration of the 80th anniversary of the victory in the Chinese People's Anti-Japanese War and the World Anti-Fascist War, with various activities and preparations underway across the country [8][9][11] - The significance of the event is underscored by the participation of the military, including a comprehensive rehearsal for the parade, which has garnered significant public interest on social media platforms [9][10] - The commemorative activities include exhibitions, historical photo displays, and the issuance of special stamps, all aimed at honoring the sacrifices made during the war and promoting national pride [13][14] Group 2 - The military parade will showcase a range of advanced domestic weaponry, including new-generation equipment and unmanned systems, reflecting the modernization of the armed forces [10] - The commemorative events are designed to evoke a sense of historical awareness and national unity, encouraging citizens to remember the past and appreciate the current peace [11][12] - The donation of historical photographs by a French individual serves to bridge cultural understanding and highlight the importance of remembering the atrocities of war, emphasizing the need for historical education [15][17]

Group 1 - The core event is the commemoration of the 80th anniversary of China's victory in the Anti-Japanese War and the World Anti-Fascist War, with significant foreign attendance including 26 foreign heads of state and government leaders [1][3] - Russian President Vladimir Putin's visit to China is described as unprecedented, highlighting the importance of Sino-Russian relations [1][4] - The participation of leaders from North Korea and several Southeast Asian countries indicates China's growing influence and diplomatic efforts in the region [4][6] Group 2 - The military parade on September 3 is expected to showcase advanced weaponry, including new-generation equipment and strategic deterrent capabilities, reflecting China's military modernization efforts [8][9] - The event will feature a significant number of foreign leaders, including those from Indonesia and Malaysia, emphasizing China's commitment to strengthening ties with Southeast Asian nations [4][6] - The military display aims to convey China's determination to maintain national sovereignty and promote global peace, aligning with its long-standing policy of peaceful development [9]

Investment Rating - The industry investment rating is "Overweight" [1][10] Core Viewpoints - The military industry is expected to benefit from the upcoming military parade showcasing new equipment, indicating a new phase in equipment construction and a potential turning point for orders and revenue in the military sector [3][4] - The performance of the military sector is anticipated to improve continuously from Q3 2025 to Q2 2026, following a decline in orders in 2024 due to anti-corruption efforts, with a significant recovery expected in 2025 [4][5] - The current military market rally is supported by fundamental improvements, with expectations for sustained order fulfillment and a favorable direction for equipment development during the "14th Five-Year Plan" [5][6] Summary by Sections Industry Performance - The military sector's performance is projected to improve significantly in the coming quarters, with a low performance base in 2024 allowing for substantial year-on-year growth [4] - The military parade is a key catalyst for the current market rally, with new equipment expected to be major products in the next five years [5] Key Beneficiaries - Companies involved in unmanned equipment, low-cost ammunition, and intelligent systems are expected to benefit from international military trade and conflicts [6] - Specific beneficiaries include companies like Jingpin Special Equipment, Aerospace Rainbow, and others in various segments of the military supply chain [6]

Core Points - The upcoming military parade on September 3 is a significant event marking the first display of military strength in the new journey of Chinese-style modernization, emphasizing the spirit of the great anti-Japanese war and the importance of maintaining international order and justice [4][6][10] Summary by Sections Parade Overview - The parade will feature 45 formations and last approximately 70 minutes, with troops lined up along Chang'an Avenue to be reviewed by President Xi Jinping [6][9] - The parade will consist of a ceremonial segment and a display segment, showcasing various military units and equipment [6][9] Military Structure and Equipment - The parade will highlight a new military structure, including a combination of traditional and modern forces, with a focus on operational capabilities [7][10] - All displayed equipment will be domestically produced, featuring advanced weaponry such as new-generation tanks, aircraft, and unmanned systems [10] Training and Preparation - The preparation involves over ten thousand personnel and hundreds of aircraft and ground vehicles, requiring meticulous planning and execution akin to a military operation [9] - Training emphasizes real combat standards, utilizing advanced technologies for coordination and assessment [9] Public Impact and Coordination - The overall principle during preparations is to minimize disruption to the public, with training locations chosen to avoid densely populated areas [12][13] - Coordination with local traffic and air control authorities aims to reduce the impact on civilian activities during the parade [14][15]