On the afternoon of the 7th, the defense sector strengthened again, with its core asset—the Huabao Fund Defense ETF (512810)—rising nearly 1%, marking its fourth consecutive day of gains. Boosted by the computing power chip concept, some component stocks experienced significant heating. China Greatwall Technology Group Co.,Ltd. and Hangjin Technology Co.,Ltd. continued to hit their daily upside limits, achieving three consecutive limit-ups and three limit-ups in four days, respectively. Philitech surged over 11% in the afternoon session.
On the news front, the U.S. military is pushing defense contractors to open access to weapon software permissions. This aims to enhance interoperability between various equipment systems and facilitate integration with emerging artificial intelligence tools. The U.S. Department of Defense stated on Tuesday that nine companies have agreed to enable data interoperability across various systems, from radars to surface-to-air missile launchers. Institutional analysis points out that the accelerated construction of new combat systems, characterized by intelligence, unmanned operations, and systematic integration, is continuously driving rapid expansion and structural upgrades in demand for military electronics. Military electronics are a key support for generating new quality combat capabilities, with intelligence being a primary focus of its development.
From a fundamental perspective, first-quarter reports confirm the high prosperity of the defense industry. Statistics show that 64 out of the 80 component stocks in the Huabao Fund Defense ETF (512810) achieved profitability, accounting for 80%. Half reported positive year-on-year net profit growth, with 15 stocks exceeding 100% growth. Among them, Aerospace Science and Technology Corp., Aerospace CH UAV Co., Ltd., and Guide Infrared Co., Ltd. ranked top three with net profit growth rates of 512%, 427%, and 338%, respectively. According to consistent institutional forecasts, the year-on-year growth rate of the net profit attributable to shareholders in the defense sector is expected to exceed 71% by 2026.
The Huabao Fund Defense ETF (512810), whose code contains the numbers associated with the military, aggregates cutting-edge defense technologies across "land, sea, air, and space." It comprehensively covers popular themes such as "commercial aerospace, large aircraft, low-altitude economy, and military AI." Additionally, it is a margin trading and Shanghai-Hong Kong Stock Connect eligible security, serving as an efficient tool for investing in core defense assets with a single click. Data is sourced from the Shanghai and Shenzhen Stock Exchanges and public information. Note: When investors subscribe for or redeem fund shares, the subscription/redemption agent may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. Institutional views are sourced from Orient Securities' report dated April 27, 2026, titled "Commercial Aerospace Standard System Released; Satellite Operations, Manufacturing & Terminal Construction Expected to See Scalable Development." Risk Warning: The Huabao Fund Defense ETF passively tracks the CSI Defense Index, which has a base date of December 31, 2004, and was published on December 26, 2013. The component stocks mentioned are for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the management company. The composition of the underlying index's components is adjusted according to its compilation rules. The fund manager assesses the risk rating of the Huabao Fund Defense ETF as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Any information appearing in this content (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks; past performance of a fund does not indicate its future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Caution is advised in fund investments.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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