as of 13:55 on March 12, 2024, the China securities defense index (399973) rose 2.02 percent, the constituent stock of high-tech infrared (002414) rose 6.47 percent, huaqin technology (688281) rose percent, tunan shares (300855) rose 6.19 percent, aerospace technology (688239), zhongzhi shares (600038) and other stocks followed. Defense ETF(512670) rose 2.12 percent, hitting 3 straight gains, with intraday turnover reaching 79.5607 million billion yuan.

At the valuation level, the latest price-to-earnings ratio (PE-TTM) of the CSI Defense Index tracked by the Defense ETF is only 36.3 times, at a fraction of 14.46 per cent in the last year, I .e., a historically low valuation of more than 85.54 per cent below the last year.

National Defense ETF closely tracks the China Securities National Defense Index. The China Securities National Defense Index selects the securities of listed companies under the top ten military industry group companies, as well as the securities of relevant listed companies that provide weapons and equipment for the national armed forces, or have actual equipment sales amount or contracts with the military as index samples to reflect the overall performance of the securities of listed companies in the national defense industry.

data show that as of February 29, 2024, the top 10 heavyweights in China securities defense index (399973) are aviation power (600893), China aviation shenfei (600760), China aviation optoelectronics (002179), China aviation xifei (000768), China aviation airborne (600372), Zhenhua technology (000733), Hagrid communication (002465), western superconducting (688122), China aviation heavy aircraft (600765) and China aviation hi tech (600862), the top ten weighted stocks together accounted for 47.87 per cent.

Guojin Securities believes that China's national defense construction is facing a critical transition period, leading companies have the advantage of card position, performance growth certainty is strong, the early by the plate suppression. China's advanced military aircraft, aviation engines and other main combat equipment still have a short board, with the new model orders gradually decentralized, sub-track leading companies have a long-term solid growth base, outstanding investment value. In addition, as most of the leading enterprises in the military industry are central state-owned enterprises, the efficiency of asset operation is expected to be further improved under the continuous promotion of the reform of state-owned enterprises, the introduction of equity incentives enterprises have the endogenous power to continue to promote reform, some of the military industry group high-quality assets also have further integration space.