国防军工行业周报（2025年第7周）：订单有望逐渐落地，关注军工最佳时机

Investment Rating - The report maintains a "Positive" outlook on the defense and military industry, suggesting it will outperform the overall market in the coming months [1]. Core Insights - The defense and military industry has experienced a recent adjustment due to a lack of market confirmation regarding industry changes, but the fundamental outlook is improving as orders are gradually being fulfilled [3][4]. - The report highlights that military orders are expected to continue to materialize, leading to significant improvements in quarterly earnings for military companies [3]. - The industry is projected to maintain high growth rates, driven by modernization efforts and increasing demand for new technologies such as satellite and low-altitude systems [3]. - The report emphasizes the importance of focusing on two categories of core stocks: elastic varieties (consumable weapons and military electronics) and value varieties (stable performance manufacturers) [3]. Market Review - Last week, the Shenwan Defense and Military Index fell by 0.59%, while the overall market indices showed positive growth, indicating underperformance relative to the broader market [4]. - The top five performing stocks in the defense sector included Hangjin Technology (up 47.2%), Xuanji Information (up 16.34%), and Andavil (up 13.07%) [10]. - Conversely, the bottom five performers included AVIC Heavy Machinery (down 7.31%) and Torch Electronics (down 5.7%) [11]. Valuation Changes - The current PE-TTM for the Shenwan Defense and Military sector is 66.21, indicating it is in the upper range historically, with some segments like aerospace and aviation equipment also showing high valuations [11][12]. - The report lists key stocks with their projected earnings and valuations, highlighting the expected growth in net profits for several companies in the sector [17]. Key Investment Themes - The report identifies two main investment themes: high-end combat capabilities and new quality combat capabilities, focusing on advanced materials, precision-guided weapons, and low-altitude economic opportunities [3]. - Specific stocks to watch include AVIC Shenyang Aircraft, AVIC Xi'an Aircraft, and Aero Engine Corporation of China, among others [3].