As of the close of trading on April 9, 2025, the CSI Defense Index (399973) rose 5.79%, the constituent stocks UAV (688297) rose 12.03%, Triangle Defense (300775) rose 10.85%, 712 (603712) rose 10.02%, China Haiphong (600764), Zhongbing Red Arrow (000519) and other stocks followed suit. Defense ETF (512670) rose 6.29%, and the latest price was 0.69 yuan. In the context of the "reciprocal tariffs" of the United States sweeping the world, the national defense industry naturally has the characteristics of rigid demand, high proportion of domestic demand, and strong planning.

According to the data, in the last round of trade frictions in 2018, after Trump announced his intention to impose 25% tariffs on Chinese goods worth $50 billion, the defense and military sector index strengthened sharply within a month, exceeding the CSI 300 index by 15.48 percentage points.

Today, CSSC Defense announced its 2024 annual results, which also verified the independence of the national defense industry. In 2024, CSSC Defense will achieve an operating income of 19.402 billion yuan, up 20% year-on-year, growing for four consecutive years, and a net profit of 377 million yuan, up 685% year-on-year.

At the same time, Northeast Securities expressed its view that the national defense and military industry sector has long-term growth certainty. Since 2023, the fundamentals of the military industry have been affected by factors such as personnel adjustments, orders have been delayed, and the industry's prosperity has declined. At the current point in time, the "14th Five-Year Plan" has entered the last year, the disturbance factors in the military industry have been basically eliminated, and the downstream demand is showing recovery growth.

According to the data, as of March 31, 2025, the top ten weighted stocks of the CSI National Defense Index (399973) are AVIC Optoelectronics (002179), Hangfa Power (600893), AVIC Shenfei (600760), AVIC West (000768), AVIC Airborne (600372), Aerospace Electronics (600879), Philip (300395), Higer Communications (002465), Ruichuang Micro-Nano (688002), Western Superconductor ( 688122), the top 10 weighted stocks accounted for 43.42% of the total.