According to the CITIC Construction Investment Research Report, from before the “Eleventh” holiday until last week, the general market and military sector experienced large fluctuations due to successful intercontinental ballistic missile tests, the central bank's interest rate cut to release liquidity, and various favorable policies. During this period, many listed companies in the military sector announced repurchase plans or repurchase processes, reflecting the company's confidence in the industry. Currently, the military sector is at the bottom of the triple range of valuation, performance growth, and capital allocation. Domestic and foreign catalytic factors may continue to emerge in the fourth quarter of 2024, injecting new impetus into the rise in the sector, and the new quality sector continues to catalyze. It is recommended to actively seize opportunities for structural recovery. In terms of configuration, the proposal focuses on three main lines of investment. One is the traditional military equipment industry, and the suggestion is to focus on the aviation development industry, shipbuilding industry, and aerospace industry with order restoration expectations and performance support; the second is the new field of new quality equipment. It is recommended to focus on industries with three characteristics of low cost, intelligence, and systematization, including low-cost accurate missile manufacturing drugs, unmanned systems, and next-generation intelligent combat platforms; the third is the new quality productivity. It is recommended to focus on industries with broad application market space, and the industry is in a period of rapid growth and low localization rate, mainly commercial aerospace, low altitude economy, and large air economy airplane , additive manufacturing. Furthermore, the direction of military trade going overseas is also worth paying attention to.

According to the CITIC Construction Investment Research Report, from before the “Eleventh” holiday until last week, the general market and military sector experienced large fluctuations due to successful intercontinental ballistic missile tests, the central bank's interest rate cut to release liquidity, and various favorable policies. During this period, many listed companies in the military sector announced repurchase plans or repurchase processes, reflecting the company's confidence in the industry. Currently, the military sector is at the bottom of the triple range of valuation, performance growth, and capital allocation. Domestic and foreign catalytic factors may continue to emerge in the fourth quarter of 2024, injecting new impetus into the rise in the sector, and the new quality sector continues to catalyze. It is recommended to actively seize opportunities for structural recovery. In terms of configuration, the proposal focuses on three main lines of investment. One is the traditional military equipment industry, and the suggestion is to focus on the aviation development industry, shipbuilding industry, and aerospace industry with order restoration expectations and performance support; the second is the new field of new quality equipment. It is recommended to focus on industries with three characteristics of low cost, intelligence, and systematization, including low-cost accurate missile manufacturing drugs, unmanned systems, and next-generation intelligent combat platforms; the third is the new quality productivity. It is recommended to focus on industries with broad application market space, and the industry is in a period of rapid growth and low localization rate, mainly commercial aerospace, low altitude economy, and large air economy airplane , additive manufacturing. Furthermore, the direction of military trade going overseas is also worth paying attention to.