Positive news surged again on February 25th, as the commercial aerospace sector experienced a sudden uptick in the afternoon. Shares of Hubei Feilihua Quartz Glass Co.,Ltd. surged by as much as 16% to reach a new all-time high, while Aerospace Hi-Tech Holding Group Co., Ltd. rose over 6%. The broader defense industry followed the upward trend, with the popular Huabao Defense Industry ETF (512810) gaining more than 1% and aiming for its fourth consecutive positive daily close.

According to multiple foreign media reports, SpaceX CEO Elon Musk plans to build a massive electromagnetic catapult and a satellite assembly factory on the moon. This initiative aims to more efficiently deploy a satellite network dedicated to artificial intelligence (AI) data centers, launching satellites from the lunar surface into Earth's orbit using the electromagnetic system.

Domestically, Chinese commercial aerospace firm LandSpace announced that its reusable rocket, Zhuque-3, is scheduled to conduct another recovery test in the second quarter of this year. A successful recovery of the Zhuque-3's first stage would allow it to be reused on a subsequent launch of the same rocket model.

On the policy front, the Hainan Province "AI+" Action Plan (2026-2028) has been released. The plan proposes promoting the application of AI technology in areas such as launch safety control, intelligent satellite data processing, and smart manufacturing inspection for aerospace. It aims to optimize launch procedures, enhance the efficiency of satellite data interpretation, ensure the quality of aerospace products, and foster the agglomeration and innovative development of the commercial aerospace industry.

Analysts point out that the high certainty of demand growth for the localization of both commercial aerospace and aviation over the next five years, coupled with the manufacturing segments of both fields representing trillion-yuan markets, is expected to sustain strong market favor.

The Huabao Defense Industry ETF (512810), which covers popular themes like "large aircraft, commercial aerospace, low-altitude economy, satellite navigation, defense informatization, and controllable nuclear fusion," is an efficient tool for investing in core defense assets. It is also designated for margin trading and Stock Connect programs.

Data is sourced from the Shanghai and Shenzhen Stock Exchanges and publicly available information.

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Risk Warning: The Huabao Defense Industry ETF passively tracks the CSI Defense Index, which has a base date of December 31, 2004, and was published on December 26, 2013. The constituent stocks 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's constituents is adjusted according to its compilation rules. The fund manager assesses the risk rating of the Huabao Defense Industry ETF as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Any information appearing herein (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, 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; the past performance of a fund does not indicate its future returns, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be approached with caution.

A MACD golden cross signal has formed, indicating positive momentum for these stocks.