According to the Securities Times app, defense stocks continue to rise. As of the time of publication, avichina (02357) rose by 5.08% to HKD 4.34; cssc offshore & marine engineering (00317) rose by 2.58% to HKD 12.7; china aerospace (00031) rose by 2.25% to HKD 0.455.

Huaxi Securities previously pointed out that recently, ship restructuring has started, and the listing of Chengdu Aircraft Industrial Corporation (CAC) is imminent, while mergers and restructurings have once again entered an active period. There are many central state-owned enterprises in the defense industry, with a large number of advantageous assets outside the body, naturally possessing restructuring advantages. At the same time, in terms of fundamentals, many companies have disclosed new orders since the beginning of this year, and the demand inflection point has arrived. In addition, on September 25th, China successfully test-fired an intercontinental missile into the Pacific, demonstrating reliable and credible strength. We determine that after nearly 2 years of industry rectification, the defense sector is now at a historic low, and we recommend paying attention to the issuance rhythm of defense orders in the fourth quarter.

Everbright Securities pointed out that the demand for enhancing national defense construction will exist for a long time. At the same time, under the traction of international military trade and military-civilian integration demands, the national defense and military industry is expected to continue to maintain a high level of prosperity and sustain long-term growth momentum. With the issuance of industry events such as the promulgation of the revised Regulations on Military Auditing and the related work arrangements for the development of the industry chain by the Third Plenary Session of the Twentieth Central Committee, the sector's attention is expected to usher in a phase of enhancement.