The defense industry plate is one of the few A shares that are active against the market today (May 23).BingoblitzclubAlthough the afternoon shock declined, there were changes in many topics such as the middle ship system, aircraft carriers, low-altitude economy, and military informatization in the plate. Ammunition track leader Great Wall military industry sealed trading board, aerospace military industry leader Xinyu Guoke 20CM trading board, Morninglight Airlines, China Shipping Emergency rose 9.Bingoblitzclub.72%, 7.21%.

Figure: defense industry ETF (512810) target index CSI military stocks rose TOP10

Reviewing the trend of the national defense industry ETF (512810), which is popular in the field, the market of the defense industry plate fell quickly after rising at the beginning of the day, and failed to rise in the afternoon. As of the close, the ETF (512810) floor price of the defense industry fell 1.05%, less than the Shanghai index (- 1.33%), gem index (- 1.38%) and other major stock indexes.

It is worth noting that the defense industry ETF (512810) almost throughout the day to maintain premium trading, afternoon low range of premium significantly widened, reflecting the relative strength of buying funds, there may be funds involved in every fall. In fact, there were 6.25 million funds yesterday that went against the market and increased positions.

How do you view the local changes in the national defense industry today? From a news point of view, there are two main influencing factors:

First, there is a big move in the southeast, so you can follow the military news. Zheshang Securities previously reported that under the "great changes that have not occurred in a century", "strengthening the army for 2027 years and building a strong national defense commensurate with the second largest economy" is the established direction.

Second, policies related to the low-altitude economy blossomed in many places. Yesterday, Zhejiang, Guangdong and Sichuan provinces released low-altitude economic plans on the same day, and local low-altitude competitions were accelerated again. There is a high correlation between low-altitude economic industrial chain and aviation industrial chain, and national defense military industrial enterprises play an important supporting role in the construction of low-altitude economy and are expected to benefit significantly.

From the investment point of view, the current defense industry sector valuation performance-to-price ratio has a comparative advantage. The data show that as of the close, the valuation of the CSI PE tracked by ETF (512810) was 55.43 times, at 19.57 per cent in the past decade, that is, less than about 80 per cent in the past 10 years.

In terms of fundamentals, founder Securities Research News believes that with the landing of personnel adjustments led by various ministries and commissions and military industrial groups, including the positive catalysis of the formation of the structural layout of new services and arms, industry orders are expected to usher in a rapid recovery, industry fundamentals or bottoming out, and industry beta is expected to usher in significant repair.

A strong country and a strong army, a strong army and national security! Optimistic about the investment opportunities of the national defense industry plate, it is suggested to focus on the national defense industry ETF (512810). The fund tracks the CSI military industry index, and the constituent stocks fully cover the leading stocks in such subdivisions as "low-altitude economy + military industry informatization + China Shipping system + China Aviation system". It is a sharp weapon to invest in A-share defense military industry core assets.

It is particularly worth mentioning that as of the first quarter of 2024, the excess return of the net worth growth relative to the performance benchmark of the defense industry ETF (512810) since its establishment is as high as 19.87%!

Note: the annual performance of ETF from 2016 to 2023 is-7.33%,-12.27%,-28.34%, 25.39%, 77.34%, 25.08%,-25.52%, 9.09%, respectively. The returns of the performance benchmark (CSI) for the same period are-3.44%,-18.37%,-27.25%, 22.02%, 67.91%, 14.28%,-25.74%,-11.02%, respectively. The composition of the underlying index stocks is timely adjusted according to the rules of the index, and its historical performance does not predict the future performance of the index. The pictures and data of this article come from iFinD, Shanghai and Shenzhen Stock Exchange and Warburg Fund. Risk Tip: the Defense Industry ETF passively tracks the CSI, which is based on December 31, 2004 and was released on December 26, 2013. The above stocks are the underlying index stocks and are only for display. The individual stocks are not described as any form of investment advice, nor do they represent the position information and trading trends of any fund under the manager. The risk level of the fund assessed by the fund manager is R3-medium risk, which is suitable for balanced (C3) and above investors. the appropriate matching opinions should be based on the sales organization. Any information that appears in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only and the investor is responsible for any discretionary investment behavior. In addition, any point of view, analysis and forecast in this article does not constitute any form of investment advice to the reader, nor is it liable for direct or indirect losses arising from the use of the contents of this article. Fund investment is risky, the past performance of the fund does not represent its future performance, and the performance of other funds managed by fund managers does not constitute a guarantee of fund performance, so fund investment should be cautious.