CITIC Securities: Summary of the third quarter report on the defense industry, the inflection point of the sector's performance has emerged.

According to the research report by CITIC Securities, looking at the situation of 162 key companies in the military industry sector that were tracked, the total operating income for the third quarter of this year reached 600.375 billion yuan, a year-on-year increase of 16.99%; the net profit attributable to the mother company reached 29.822 billion yuan, a year-on-year increase of 14.01%. The core targets of the military industry sector saw a turning point in performance in the third quarter, with both revenue and net profit significantly improving year-on-year, and the bottom recovery is expected to continue. Except for the slight pressure on aero engines, sectors such as defense informationization, aviation, aerospace, ground armaments, ships, commercial aerospace, etc., all show signs of bottom recovery. The growth points in domestic demand for military industry are expected to accelerate, and military trade orders are expected to continue to be implemented, with the overall recovery momentum expected to significantly increase and integration expectations expected to continue to heat up. With the final implementation of military anti-corruption measures, it is expected to enter a new cycle of comprehensive fundamental recovery.