Hong Kong stocks concept tracking | Aerospace Hi-Tech Holding Group signed nearly 60 billion orders, institutions optimistic about the military industry sector to enhance the valuation bottom (with concept stocks)

The 15th China International Aviation and Aerospace Exhibition opened in Zhuhai, Guangdong on the morning of November 12. China Aerospace Hi-Tech Holding Group Co., Ltd. held a major project signing ceremony, signing more than 70 cooperation agreements and intentions with relevant national departments, local governments, industry users, company representatives, etc., with a total contract amount of nearly 60 billion yuan, reaching a new high. China Securities Co., Ltd. pointed out in its research report that the military industry is currently in a triple bottom range in terms of sector valuation, performance growth rate, and fund allocation, with significant investment value. Morgan Stanley Fund stated that after years of deep adjustment, the defense industry may be at a turning point. From the perspective of performance fundamentals, the profitability of the military industry sector has returned to the level close to the starting point of the previous cycle in 2019. With the sprint phase of the 14th Five-Year Plan, the profitability level of the sector is expected to bottom out and rebound under the catalysis of new orders, quality improvement, and efficiency enhancement. Subsequent attention should continue to focus on signals of turning points in orders. Raymond Lei, Deputy Director of the Equity Investment Department of Morgan Stanley Fund, stated that with the continuous growth of the domestic economic total, the industrial trend of national defense and military industries remains consistent with the overall trend of national defense budget investment, and still has high certainty and growth potential in the medium to long term. Hong Kong-listed aerospace and defense-related stocks: AVICHINA (02357): AVICHINA's main business has formed a complete aviation industry chain including aviation aircraft, aviation support systems and related services, engineering services, aviation-related investments, etc. The holding companies AVICOPTER PLC, Jiangxi Hongdu Aviation Industry, AVIC Jonhon Optronic Technology, and AVIC Airborne Systems, which have listed on the A-share market, have formed core competitive capabilities in various upstream, midstream, and downstream businesses of the aviation industry chain.