The military sector experienced volatile movements today. The core military asset, the Military Industry ETF Hua Bao (512810), surged early in the session before retreating and turning negative, with its on-market price at one point approaching its annual support line.
Notably, the ETF frequently traded at a premium in the on-market, indicating active buying interest. In the previous trading session (May 29th), it saw net subscriptions exceeding 24 million yuan.
Constituent stocks displayed mixed performance. Guangqi Technology and Raytron Technology Inc. fell over 3%, while Hubei Feilihua Quartz Glass Co.,Ltd. plunged 11%.
Stocks related to military passive components, such as MLCCs, strengthened again. Fujian Torch Electron Technology Co.,Ltd. hit the daily 10% limit-up, reaching a new three-year high. Hongyuan Electronics, Sichuan Jiuzhou, and China Greatwall Technology Group all rose over 5%.
Analysis points out that the number of MLCCs used in AI servers is 10 to 15 times that of general-purpose servers, leading to a continuous intensification of MLCC shortages and subsequent price increases.
Companies like Fujian Torch Electron Technology Co.,Ltd. and Hongyuan Electronics, besides their military passive component businesses, also have civilian operations in areas like AI server power supplies and power storage markets. The development of the AI industry is providing new growth logic for these enterprises.
From an investment timing perspective, the military sector has been consolidating since mid-May. The price-to-earnings ratio (TTM) of the underlying index for the Military Industry ETF Hua Bao (512810) has digested to around the 50.33% percentile point of the past three years, placing it within a reasonable range and highlighting its current allocation appeal.
The Military Industry ETF Hua Bao (512810), whose code contains the numbers "81" (a symbolic reference to the Chinese military), aggregates cutting-edge military technologies across "land, sea, air, and space," comprehensively covering hot themes such as commercial aerospace, military AI, large aircraft, and the low-altitude economy. It is also a margin trading and Stock Connect eligible security, serving as an efficient tool for one-click investment in core military assets.
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