CSC: The defense sector's performance continues to rebound, entering a new cycle of comprehensive fundamental recovery.

A research report by CITIC Securities believes that the performance of the defense and military industry sector has continued to recover since bottoming out in 2025, and the recovery in demand has been reflected in the financial statements for multiple consecutive quarters. In the first half of 2026, the sector's profit growth rate is expected to rise significantly to a new level, and the recovery is moving from structural to comprehensive. Against the backdrop of the centenary of the founding of the military in 2027, the industry's upward trend from 2025 to 2027 is highly certain, and it is currently at a key window as the "14th Five-Year Plan" concludes and the "15th Five-Year Plan" begins. As the equipment catalog of the "15th Five-Year Plan" is gradually clarified, large-scale order placement is approaching, and the sector has entered a new cycle of comprehensive fundamental recovery.