On the afternoon of April 29, the defense sector experienced a volatile uptick. The core defense asset, Huabao Defense ETF (512810), turned positive, with its premium rate rising year-on-year, indicating strong buying interest. Fund flows had already turned positive the previous day.
Among the constituent stocks, Aerospace Hi-Tech Holding Group Co.,Ltd. and Hangjin Technology Co.,Ltd. both surged to the daily limit-up. Zhongjian Technology and Feilihua gained over 4%. On the downside, Western Superconducting, Zhenhua Technology, and Torch Electron saw significant declines.
Recent developments show a dense release of first-quarter reports from defense stocks over the past two days, potentially impacting share prices. The limit-up stocks, Aerospace Hi-Tech and Hangjin Technology, reported year-on-year surges in first-quarter net profit attributable to shareholders exceeding 512% and 213%, respectively.
Statistics indicate that 65 constituent stocks of Huabao Defense ETF (512810) have released their first-quarter reports, with 52 achieving profitability, accounting for 80% of the total. Half reported year-on-year net profit growth, and 12 stocks saw growth rates exceeding 100%.
Strategy research from China Merchants Securities suggests that since April, eased geopolitical risks have driven a recovery in A-share risk appetite, with consecutive trading volumes surpassing 2 trillion yuan. The pricing logic has shifted from defensive positioning to earnings verification. The recommendation is to select differentiated opportunities within crowded sectors, focusing on hard technology and genuine resources to capture structural opportunities driven by both profitability and industry momentum. Key areas to watch include defense, electronics (semiconductors), power, and power equipment (batteries, grid equipment).
Huabao Defense ETF (512810), which incorporates advanced defense technologies across "land, sea, air, and space," comprehensively covers popular themes such as commercial aerospace, large aircraft, low-altitude economy, and defense AI. It is also eligible for margin trading and Stock Connect programs, serving as an efficient tool for investing in core defense assets.
Data is sourced from the Shanghai and Shenzhen stock exchanges and public information. Note: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees collected by stock exchanges and registration institutions.
Risk Warning: Huabao Defense ETF passively tracks the CSI Defense Index, which has a base date of December 31, 2004, and was launched on December 26, 2013. The index constituents mentioned are for illustrative purposes only; descriptions of individual stocks are not investment advice of any form and do not represent the holdings or trading动向 of any fund managed by the management company. The composition of the underlying index is adjusted according to its compilation rules. The fund manager assesses the risk rating of Huabao Defense ETF as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Any information appearing herein is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses resulting 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. Invest cautiously in funds.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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