Core Viewpoint - The carbon fiber industry is showing signs of recovery in the first half of the year, with most companies reporting positive revenue growth after a challenging two years due to supply-demand mismatches and weak downstream demand [1]. Industry Overview - The recovery is attributed to technological breakthroughs and the advancement of large and small tow fibers, leading to a more complete industrial chain [1]. - Rapid release of downstream demand, particularly in the high-value aerospace market and the emerging low-altitude economy represented by eVTOL, is driving growth [1]. - Significant demand for carbon fiber in the wind power sector and the electric vehicle industry is also noted, with carbon fiber structural components and carbon-ceramic brake discs gaining traction [1]. Company Performance - **Zhongjian Technology**: Achieved revenue of 464 million yuan, a year-on-year increase of 59.46%, and net profit of 208 million yuan, up 99.15% [2]. - **Zhongfu Shenying**: Reported revenue of 922 million yuan, a 25.86% increase, with net profit of 11.93 million yuan. Notable sales growth in small tow products and significant increases in the wind power sector [3]. - **Jilin Chemical Fiber**: Revenue of approximately 2.635 billion yuan, a 48.39% increase, with carbon fiber product revenue soaring by 368.31% [3]. - **Guangwei Composites**: Revenue of 1.201 billion yuan, a 3.87% increase, with a notable 47.95% growth in the new energy sector [4]. - **AVIC High-tech**: Revenue of 2.747 billion yuan, a 7.87% increase, focusing on aerospace new materials and advanced manufacturing technologies [4]. - **Shanghai Petrochemical**: Revenue of 39.5 billion yuan, a 9.17% decrease, but plans to enhance carbon fiber production and expand applications in various sectors [4]. - **Jinggong Technology**: Revenue of 1.061 billion yuan, a 10.31% increase, with a significant portion from carbon fiber equipment [4]. - **Jinbo Co., Ltd.**: Revenue of 411 million yuan, a 19.69% increase, with positive prospects in carbon/ceramic brake discs due to the rapid development of the new energy vehicle sector [4]. - **Boyun New Materials**: Revenue of 396 million yuan, a 30.98% increase, with a significant contribution from aerospace applications [5]. - **Chuangjiang New Materials**: Revenue of 28.803 billion yuan, a 16.05% increase, with net profit of 251 million yuan, driven by effective capacity release and product upgrades [6]. Market Trends - The carbon fiber industry's recovery is supported by the release of application-side demand, with companies like Zhongfu Shenying and Shanghai Petrochemical planning expansions [6]. - The industry is experiencing a phase of technological advancement and application expansion, indicating a clear trend towards recovery and growth [6].

Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Viewpoints - As of February 28, 2025, among the 120 tracked defense industry listed companies, 87 have disclosed their 2024 performance forecasts, with 24 companies showing positive growth year-on-year [5][13] - The shipbuilding sector is experiencing high growth, with companies like China Shipbuilding Defense, China Heavy Industry, and China Power reporting significant performance increases, with growth rates of 680%, 259%, 65%, and 23% respectively [6][13] - In the aerospace and aviation industry, companies such as AVIC Xi'an Aircraft Industry Group and material suppliers like Zhongjian Technology and Huayin Technology are also maintaining rapid growth, with AVIC Xi'an expected to achieve a net profit of 990 million to 1.076 billion yuan, representing a year-on-year increase of 15% to 25% [7][14] Summary by Relevant Sections Industry Overview - The defense industry is expected to see an inflection point in orders as the "Centenary of the Army Building" mission enters its second half, with new technologies and products aimed at enhancing equipment performance or reducing costs [8][19] Performance Overview - The defense sector's performance is reflected in the recent decline of the CSI Military Industry Index by 3.57%, while the overall market indices also experienced declines [20][21] Company Performance - Among the listed companies, 24 reported positive growth, while 29 showed positive but declining performance, and 28 reported losses with an increase in year-on-year losses [5][13] - Specific companies like AVIC Xi'an and Zhongjian Technology are highlighted for their strong performance forecasts, indicating a robust outlook for the sector [7][14] Investment Recommendations - Two main investment themes are suggested: 1) Aerospace and "gap-filling" new focuses, including companies like Feili Hua, Fenghuo Electronics, and others [8][19] 2) New technologies, products, and markets with greater elasticity, including companies like Aerospace Intelligence, Guorui Technology, and others [8][19] Valuation Levels - As of February 28, 2025, the CSI Military Industry Index stands at 10,288.33, with a PE-TTM valuation of 72.96 and a PB valuation of 3.31, indicating that both valuations are at historical mid-levels [26]