Hong Kong stocks concept tracking | European defense stocks surge, great power game increased defense investment (with concept stocks)

Influenced by factors such as threats from US President Trump to "abandon protection" of Europe, the EU's "Re-arming Europe" package plan, etc., the stock prices of European defense companies such as Germany's Rheinmetall, Italy's Leonardo, and Sweden's Saab have skyrocketed. Since Trump returned to the White House, the stock prices of European defense companies have been soaring. Although European countries have not yet canceled US weapons orders, almost no one doubts that Europe will begin to take a more independent approach. The stock price of Germany's Rheinmetall was about 600 euros per share at the beginning of this year, and it surpassed 1200 euros per share in early March, reaching a historic high. Before the 2022 Russia-Ukraine conflict erupted, the company's stock price was once below 100 euros per share. At the same time, the stock prices of Italy's Leonardo and Sweden's Saab have also increased by over 50% since the beginning of the year. It is reported that in order to meet market demand, some European companies have begun to undergo a "civilian-to-military" transformation, transitioning to produce military equipment. On March 5, the Third Session of the Fourteenth National People's Congress disclosed that China's defense expenditure budget for 2025 is 1.784.65 trillion yuan, an increase of 7.2% year-on-year, maintaining a growth rate of over 7% for the fourth consecutive year. In addition, the government work report clearly states the need to "accelerate the development of new quality combat capabilities" and "promote the safe and healthy development of emerging industries such as commercial aerospace and low-altitude economy." Zhonghang Securities pointed out that multiple "big military industry" tracks will continue to expand the military market space. China Securities Co., Ltd. believes that China's defense budget will maintain steady growth. European defense spending is expected to reach 800 billion euros, geopolitical uncertainties are increasing, and global military spending and arms trading are expected to continue to grow. After the Russia-Ukraine conflict, the number of weapons exported by Russia, one of the world's top 5 arms exporters, has decreased significantly. The current military trade in China has built a structurally complete, technologically advanced, and high-performance, reliable product system. While domestic demand remains strong, the international military trade market may become the second growth curve for China's military industry. Related Hong Kong stocks in the military industry sector: AVICHINA (02357): AVICHINA is the aviation equipment comprehensive listed platform under AVIC Group, and holds four A-share listed companies including AVICOPTER PLC, Jiangxi Hongdu Aviation Industry, AVIC Airborne Systems, and Jonhon Optronic Technology. Institutions point out that the speed of equipping and upgrading military equipment is increasing, and foreign trade business may become a growth point for the trainer aircraft industry; the injection of new production capacity of domestic large aircraft, and multiple companies under its control are core suppliers. Cssc Offshore & Marine Engineering (00317): The company's main business includes marine defense equipment, marine transportation equipment, marine development equipment, and marine technology application equipment. The shipbuilding industry maintains a good trend, the company's order structure continues to optimize, production tasks are full, production volume and efficiency steadily improve, ship product revenue and product gross profit increase year-on-year; the operating performance of joint ventures is good, the level of dividends from equity investees has increased, and investment income is confirmed to increase year-on-year.