1. Great Wall Military Industry (): Invisible champion in the ammunition field. Main business: core ammunition suppliers of all military branches, and their leading products include mortar shells, individual rockets, intelligent cruise missiles, and the domestic mortar shell market share is the largest.

Core logic: Equipment delivery accelerates in the final year of the 14th Five-Year Plan, and the procurement of precisely guided weapons increased by 40%. Against the backdrop of intensifying geopolitical conflicts, the company's cost-effective products (30% cheaper than Europe and the United States) have been favored by Middle Eastern countries.

Growth: Revenue in Q1 2025 increased by 5.09% year-on-year, and institutions predicted that the annual net profit growth rate exceeded 50%. Smart swarm drone technology has made breakthroughs, and order flexibility ranks first in the sector.

2. Aerospace Electronics (): Core node of the aerospace information network. Main business: Manufacturer of drone whole aircraft and satellite payloads, with a market share of over 90% of satellite computers and a leading laser communication terminal technology.

Core logic: deeply participate in the construction of the low-orbit constellation of StarNet Group, and plans to launch 13,000 satellites in 2025. Its "Feihong" cruise missiles were exported to more than ten European countries, and military trade orders hit a record high. Growth: R&D expenses in Q2 2025 increased by 40% year-on-year, production capacity increased by 3 times after the second phase of Yanqing UAV Base was put into production, and orders for satellite communication terminals increased by 230%.

3. Inner Mongolia One Machine (): a national important weapon for land combat equipment. Main business: The only main battle tank development base in the country, leading the production of Type 99 tanks and 8×8 wheeled armored vehicles, and the market share of Army equipment exceeds 60%.

Core logic: Army modernization is accelerating, ZTZ-99 tank is facing replacement for more than 20 years in service, and the development of the fourth generation of new tanks has been completed. VT-4 foreign trade tanks were purchased in batches by Pakistan and Thailand.

Growth: Revenue in Q1 2025 was 2.73 billion yuan ( 19.6%), and related sales were expected to be 4.5 billion yuan ( 64%). Increase capital in Aisen UAV to enter unmanned equipment, opening up new growth space.

4. Aerospace Rainbow (): International leader in military drones. Main business: The world's largest military drone exporter, the Rainbow series accounts for 70% of China's military trade drone exports, covering more than 20 countries.

Core logic: Rainbow-4B verifies plateau combat capabilities in India-Pakistan conflict (miss strike rate growth: military trade orders are expected to increase by 65% ​​in 2025, institutions expect net profit of 311 million yuan ( 253%), and low-altitude logistics aircraft models open up a trillion-dollar market.

5. Aerospace Power (): Pioneer of mixed reform of the aerospace heart. Main business: liquid rocket engine technology transformation platform, layout of liquid hydrogen storage and transportation equipment and commercial aerospace components.

Core logic: The asset securitization rate of the Sixth Academy of Aerospace has increased to 45%, and the reusable rocket engine production line injection is expected to be strong. Winning the bid for the Northwest Hydrogen Energy Corridor Project, policy subsidies are implemented intensively. Growth: 3.2 billion yuan of new commercial aerospace orders were added in 2024, and institutions predicted that net profit would be 1.047 billion ( 37%) in 2026, and the hydrogen energy business may double its growth.

6. AVIC Shenfei (): Large aircraft digital economy state-owned enterprise reform. The main business is one of the whole aircraft suppliers of my country's aviation. Since its founding, it has always undertaken the development tasks of my country's key aviation, and has grown together with my country's aviation industry and national defense industry. It is the development base of my country's main defense aviation.

Core logic: A high-tech industrial system with the ability to develop and produce contemporary advanced aviation equipment. In terms of military aviation equipment, it has successively developed and produced more than 40 models of thousands of fighter equipment troops, filling a series of gaps in national defense construction; it has also developed and produced my country's first carrier-based fighter J-15 aircraft.

7. China Shipbuilding (): China Shipbuilding System offshore equipment Belt and Road high-end equipment. In the field of military products, the company is a leading domestic marine listed company. It undertakes an important mission to support national defense construction. It has advanced marine R&D, design and manufacturing capabilities and is an important force in naval equipment construction.

Core logic: As a world-renowned marine transportation equipment, marine development equipment, and marine scientific research equipment development and supplier, it has serial construction capabilities such as jack-up drilling platforms and FPSOs in the field of marine engineering. Its shipbuilding completion volume, handheld order volume, and new ship order volume are all leading in China.

8. China Satellite Communications (): Commercial aerospace, 6G concept, low-altitude economy, and state-owned enterprise reform. The only telecom operator in the country with independent and controllable commercial communication satellite resources, and the core master of communication sovereignty and space channel.

Core logic: operates 17 communication satellites, with signals covering the entire territory of China Asia Middle East Africa and other regions, and has a prominent position in the global space communications industry chain. Faced with the future integrated communications of 6G and satellites, it has the advantages of integrated license resources operations, and has extremely high barriers.

9. Gaode Infrared (): infrared technology, high-end equipment, chip concept, Huawei concept, robot. The world's only closed-loop infrared industry chain covering core devices to complete systems, and R&D and manufacturing rely entirely on one's own.

Core logic: It has the overall development qualification of weapon system, and its products have entered the land, navy and air force, which is a model of "". Infrared equipment is the "eye" of modern warfare, and the company has obvious advantages in low-altitude economy, border reconnaissance and other fields.

In short, the current military industry sector is not a simple "short-term hot spot", but a long-term direction for the country's key development. These companies are like the "iron-blooded logistics forces" behind a big country, with technology, orders, and policy escort. Only by choosing the right track and being patient can you have the chance to eat real big meat. Looking back on every bull market in the past, I noticed that military stocks have shown good elasticity.

The 14th Five-Year Plan has entered its last year, and the disturbances in the military industry have been basically eliminated, and downstream demand has grown resumably. my country's military trade is achieving a triple leap from "cost-performance replacement" to "technical benchmark", from single product export to overall plan output, and from participants to rule makers. As the core support of national security, the military industry has strong risk resistance and development resilience. Combined with the expansion of the global defense budget, the development of the military industry deserves continuous attention.

China's military products move towards the international market with high certainty and long-term cyclical nature, which is also an inevitable result driven by the continuous strengthening of China's comprehensive national strength and the continuous improvement of international influence. China's military trade products will be strategically laid out around high-end, systematic and diversified, with coverage ranging from cutting-edge air force equipment and large surface equipment to traditional equipment and low-cost unmanned equipment.

The above content comes from the Internet and does not constitute investment advice. Investment decisions should be based on comprehensive research and analysis, and should take into account factors such as individual financial status, investment goals, risk tolerance, etc. Market conditions may change at any time, and investors should remain calm and rational.

#Stock trading diary##Community Magistrate Plan##China's military industry competitiveness revaluation, military trade share may expand##Plate logic: In-depth analysis, clarify investment ideas##China will set off a boom in humanoid robot applications in the second half of the year#

@Oriental Wealth Creation Assistant<