Analysis of the Impact of China's 200kg-Class Composite Wing UAV Technology Breakthrough on the Investment Value of the Aerospace and Defense Sector

Based on the collected market data, company fundamentals, and technical analysis, I will write a professional investment analysis report for you.

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The successful maiden flight of China’s Lingque-150 UAV marks a significant breakthrough in domestic UAV technology. This model adopts

, featuring vertical take-off and landing (VTOL), hovering capabilities, and modular functions, representing the advanced level of domestic UAV technology. From an investment perspective, this technological breakthrough not only reflects the technological accumulation of the domestic aerospace industry but also embodies , which will have a profound impact on the aerospace and defense sector [1][2].

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According to data from the Stockholm International Peace Research Institute (SIPRI), global military spending has grown for 10 consecutive years, exceeding $2.718 trillion in 2024, a 9.36% increase from 2023. The global military burden (military spending as a percentage of GDP) has risen to 2.46% [2].

• Europe
  : 83.24% growth
• Asia and Oceania
  : 45.56% growth
• China
  : Geopolitical situation surrounding the country drives structural growth in the defense budget

This upward trend in global defense spending has opened up

and for domestic defense enterprises.

In 2025, major restructuring events occurred frequently in the defense industry:

Restructuring Event	Strategic Significance
AVIC Electric Measurement renamed to AVIC Chengdu Aircraft	Transformed from a sensor manufacturer to an aerospace complete aircraft manufacturing giant
China South Industries Group split and integrated	Focus on main business and professional integration
China State Shipbuilding Corporation merged with China Shipbuilding Industry Corporation	Total assets exceed RMB 400 billion, leading globally

In 2026, defense industry restructuring is expected to continue the main theme of “focus on main business, asset securitization, professional integration”, with a focus on building

[2].

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• Main Business
  : Fighter aircraft complete platform, leading the production of J-16 and J-35
• Market Position
  : Benefiting from air force equipment replacement and military trade demand
• Financial Performance
  :
  • Market Capitalization: $176.91 billion
  • Current Stock Price: RMB 62.40
  • ROE: 15.87%
  • Net Profit Margin: 7.71%
  • 1-Year Growth: 31.40%
• Investment Highlights
  : Fifth-generation aircraft capacity release, naval aviation construction [1]

• Main Business
  : Leading enterprise of Wing Loong series UAVs
• Market Position
  : Global counter-terrorism and regional conflicts drive military trade demand
• Strategic Value
  : Leading exporter of UAVs in military trade

• Main Business
  : Leading aero engine enterprise, supporting advanced fighter jets
• Market Position
  : Benefiting from military aircraft updates and breakthroughs in domestic engine localization
• Financial Performance
  :
  • Market Capitalization: $117.21 billion
  • Current Stock Price: RMB 43.97
  • 5-Day Growth: +8.11%
  • 1-Month Growth: +20.56%
• Catalysts
  : Advanced fighter jet induction, accelerated domestic substitution

• Main Business
  : Leading enterprise of Rainbow series UAVs
• Financial Performance
  :
  • Market Capitalization: $27.0 billion
  • Current Stock Price: RMB 27.41
  • 1-Day Growth: +6.61%
  • 5-Day Growth: +12.52%
  • 1-Month Growth: +18.40%
  • 1-Year Growth: +58.62%
• Technical Analysis
  :
  • Trend
    : In an upward trend (to be confirmed)
  • Support Level
    : RMB 24.64
  • Resistance Level
    : RMB 28.28
  • Next Target
    : RMB 29.23
  • Beta Value
    : 0.23 (Low Volatility) [0]

• Main Business
  : Dual main lines of trainer aircraft and missiles
• Strategic Value
  : L-15 trainer aircraft is globally popular

Company	Main Business	Investment Logic
AVIC Optoelectronics	Leading military connector enterprise	Equipment informatization upgrade
Unigroup Guoxin	Military FPGA chips	Independent and controllable
Guide Infrared	Infrared imaging and guidance	Dual-line growth in military products and military trade
NRI Technology	Leading radar system enterprise	Air and missile defense construction

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The technological breakthrough of the Lingque-150 UAV will drive multiple links in the industrial chain:

Upstream: Power System (Aero Engine Corporation of China) - Composite Materials - Precision Sensors
     ↓
Midstream: Complete Aircraft Manufacturing (AVIC Shenyang Aircraft, Aerospace Rainbow, China UAV)
     ↓
Downstream: Application Services - Military Trade Exports - Civilian Market

This model adopts a “civilian shell” design, embodying the

development strategy:

• Civilian Market
  : Logistics transportation, surveying and mapping exploration, agricultural plant protection
• Military Market
  : Reconnaissance and surveillance, intelligence collection, communication relay
• Technology Transformation
  : Two-way flow of flight control systems, power systems, and material technologies

According to brokerage research, the focus in 2026 is on building AI intelligent equipment systems and unmanned combat capabilities, with UAVs as a core component [2]:

• Reconnaissance-Strike Integrated UAVs
  : Rainbow series, Wing Loong series
• High-Altitude Long-Endurance UAVs
  : Rainbow-7
• Vertical Take-off and Landing UAVs
  : Lingque-150 fills the gap

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Indicator	Value
STAR Market UAV Index (000688.SS)	Growth of +32.04% since December [0]
Defense Index (399967.SZ)	Active performance
Industrial Sector (Same Day)	+1.28% [0]

• The total scale of defense ETFs increased from RMB 29.7 billion at the beginning of 2025 to approximately RMB 60 billion in mid-December, a growth rate of over 100% [2]
• In the national defense and military industry concept sector, the stock prices of 69 companies have doubled, and 20 companies have seen growth of over 200%

Company	P/E (TTM)	P/B	ROE
AVIC Shenyang Aircraft	60.13x	8.09x	15.87%
Aero Engine Corporation of China	484.14x	2.95x	0.61%
Aerospace Rainbow	305.71x	3.37x	1.10%

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Based on technological breakthroughs and industry trends, it is recommended to focus on the following:

Allocation Priority	Sector	Targets
★★★★★	Aerospace Complete Aircraft	AVIC Shenyang Aircraft, AVIC Chengdu Aircraft, AVIC Xi’an Aircraft
★★★★★	Aero Engines	Aero Engine Corporation of China
★★★★☆	UAV Complete Aircraft	Aerospace Rainbow, China UAV
★★★★☆	Military Electronics	AVIC Optoelectronics, Unigroup Guoxin
★★★☆☆	Precision Guidance	North Navigation, Aerospace Electronics

• Short-term
  (1-3 months): Catalyzed by geopolitical events, pay attention to oversold rebound opportunities
• Mid-term
  (3-6 months): Annual report market, focus on targets with improved performance
• Long-term
  (6-12 months): Asset integration expectations, restructuring theme investment

Risk Type	Specific Performance
Valuation Risk	Some companies have high P/E ratios, need to wait for performance realization
Order Risk	Volatility of military product orders
Restructuring Risk	Asset injection progress falls short of expectations
Market Risk	Systemic correction pressure

Taking Aerospace Rainbow (002389.SZ) as an example [0]:

• Current Status
  : Upward trend to be confirmed
• Buy Signal
  : Triggered on December 26
• Risk Warning
  : KDJ is in the overbought zone (J=95.4), need to pay attention to short-term correction
• Key Support
  : RMB 24.64
• Target Price
  : RMB 29.23

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China’s technological breakthrough in 200kg-class composite wing UAVs is an important catalyst for the aerospace and defense sector. Combined with the three major trends of the upward cycle of global defense spending, accelerated domestic defense industry asset restructuring, and the construction of unmanned combat systems,

.

Core Investment Logic:

1. Order Growth
   : Structural growth in defense budget, accelerated equipment updates
2. Military Trade Exports
   : Actual combat performance drives international orders
3. Asset Integration
   : Professional restructuring creates valuation upgrade opportunities
4. Technological Breakthrough
   : Formation of new quality combat capabilities such as UAVs

It is recommended that investors

, seize the resonance opportunities of event catalysts and industrial trends, and focus on enterprises with technological advantages and leading positions.

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[1] Caifuhao - “Affected by the US military action against Venezuela, global geopolitical risk premium rises” (https://caifuhao.eastmoney.com/news/20260103210038603868870)

[2] Daily Economic News - “Asset restructuring in the defense industry brings historic opportunities, commercial aerospace opens a trillion-level new blue ocean” (https://news.qq.com/rain/a/20251225A07C8000)

[3] Huaxi Securities - “UAV concept listed company stocks” (https://m.hx168.com.cn/stock/concept/BK2185.html)

[0] Jinling API Market Data