Investment Rating - The report rates the military industry as "Overweight" [5] Core Views - The military industry is expected to perform well in the long term due to increasing great power competition and rising defense expenditures [9][20] - Recent developments include the joint naval exercises between China and Russia, and the U.S. building a counter-drone defense system [8][20] - The report highlights the restructuring of China's aviation supply chain and the importance of domestic production capabilities in the aerospace sector [22][23] Summary by Sections Investment Highlights - Recommended stocks include: 1) Assembly: AVIC Shenyang Aircraft (600760.SH), AVIC Xi'an Aircraft (000768.SZ), AVIC South Lake (688552.SH) 2) Components: AVIC Optoelectronics (002179.SZ), Guobang Electronics (603678.SH), Ruichuang Micro-Nano (688002.SH) 3) Subsystems: AVIC Aircraft (600372.SH), North Navigation (600435.SH) 4) Materials and Processing: Feilihua (300395.SZ), Guangwei Composite (300699.SZ), Huayin Technology (688281.SH) [5][9][10] Market Performance - The defense military index rose by 5.24% from August 4 to August 8, outperforming the Shanghai Composite Index by 3.13 percentage points [11][12] - The military industry ranked 3rd out of 29 sectors during this period [12] Major News in the Military Industry - The joint naval exercises "Maritime Joint-2025" between China and Russia included real combat training and operational coordination [20][21] - The U.S. is developing a counter-drone defense system, with Ukraine being a testing ground for various technologies [8][9] - Japan is expanding its military influence through participation in multinational exercises, indicating a shift in its defense posture [28][30]

Group 1 - The core viewpoint of the articles highlights China's ongoing efforts to localize its aviation supply chain, particularly in the context of the successful development of the C919 aircraft, which has garnered significant attention for the country [1] - The Longjiang 1000A engine, crucial for the C919, is reportedly making good progress in its development, representing a significant step towards China's self-reliance in aerospace technology [1] - The approval of SINOPEC AEH I, China's first domestically produced aviation hydraulic oil, marks a milestone in the country's aviation sector, making China the third nation globally capable of producing aviation-grade phosphate ester hydraulic oil [2] Group 2 - The AES100 engine has received a production license and sales contracts, being the first domestically developed 1000 kW class advanced civil turboshaft engine that adheres to international airworthiness standards, indicating a major advancement in China's aviation capabilities [2] - A new lightning protection technology system has been introduced by Hefei Aerospace Electric Physics Technology Co., which aims to enhance the safety of commercial aircraft in complex weather conditions, potentially improving the reputation of Chinese-made aircraft and facilitating overseas airworthiness certification [3]

Core Insights - The event "New Heaven and Earth - Technology Achievements Release Conference" focused on China's independent innovation achievements in the aviation sector, showcasing three breakthrough technologies: C909 medical aircraft, aircraft lightning protection technology system, and the micro-hovering flapping-wing flying device "Mechanical Hummingbird" [1][3] Group 1: C909 Medical Aircraft - The C909 medical aircraft is designed as a modular multi-purpose medical aircraft with ICU capabilities, serving as an "air ambulance" for critical patients [4] - The development team of the C909 medical aircraft took over 900 days to complete numerous specialized tests and submitted hundreds of compliance reports to obtain airworthiness certification from the Civil Aviation Administration [6] - The C909 is seen as a pioneer in China's commercial jet aircraft sector, marking a significant breakthrough in the field of aviation medical rescue [4][6] Group 2: Aircraft Lightning Protection Technology - The aircraft lightning protection technology system addresses a critical issue, as a civil aviation aircraft encounters lightning strikes on average once a year, with traditional protection methods failing at high speeds [6][8] - The technology was developed by Hefei Aerospace Electric Physics Technology Co., which has spent 30 years overcoming three major challenges in lightning protection [8] - The ultimate goal of this technology is to ensure that every Chinese-made aircraft can safely operate in severe weather conditions [8] Group 3: Mechanical Hummingbird - The "Mechanical Hummingbird" is a micro-hovering flapping-wing flying device that utilizes biomimicry based on the flight principles of hummingbirds and insects, opening new dimensions for micro flying device applications [8][9] - This flying device is expected to play significant roles in various fields such as law enforcement, emergency rescue, security, and inspection [9] - The development team is actively working on expanding the range of flying devices, aiming for the "artificial hummingbird" to operate alongside real hummingbirds in the near future [9]

Core Insights - The event "New Tian Gong Kai Wu - Technology Achievements Release Conference" highlighted significant advancements in China's aviation technology, emphasizing the importance of independent innovation in the aviation sector [1][3] - The development of the C909 medical aircraft represents a breakthrough in aviation medical rescue, showcasing China's capabilities in commercial jet manufacturing [1][3] - The introduction of a lightning protection technology system for aircraft addresses a critical safety challenge, enhancing the resilience of Chinese-made planes against lightning strikes [5][7] - The unveiling of a micro flying device inspired by hummingbirds opens new avenues for applications in various fields, including security and emergency response [5][7] Group 1: C909 Medical Aircraft - The C909 medical aircraft is designed for medical rescue and transport, featuring a modular space layout [1] - The development team completed numerous tests and submitted hundreds of compliance reports to achieve airworthiness certification from the Civil Aviation Administration [3] - The C909 is seen as a pioneer in China's commercial jet sector, marking a significant advancement in aviation medical rescue capabilities [1][3] Group 2: Lightning Protection Technology - The lightning protection technology system developed by Hefei Aerospace Electric Physics Technology Co., Ltd. addresses the challenge of aircraft safety in adverse weather conditions [5] - The team overcame three major challenges related to lightning protection, ensuring that every Chinese-made aircraft can withstand lightning strikes [5] - The technology supports the C919 aircraft in achieving airworthiness certification for lightning protection, despite international challenges [5][7] Group 3: Micro Flying Device - The micro flying device, inspired by the flight mechanics of hummingbirds, demonstrates advanced biomimetic technology [5] - This device is expected to have significant applications in various sectors, including law enforcement, emergency rescue, and security [7] - The development team is actively working on expanding the range of flying devices, aiming for future applications that can operate alongside natural hummingbirds [7]