AVICHINA (02357) surged over 6% in late trading session. As of press time, the stock was up 6.17% to HK$4.82, with turnover reaching HK$298 million.

On the news front, reports indicate that the Pakistani military has confirmed that the Pakistan Army has incorporated Chinese-manufactured Z-10ME attack helicopters into its aviation units, as part of efforts to modernize its defense equipment.

AVICHINA is the only flagship company in Hong Kong's capital market specializing in aviation high-tech military and civilian dual-use products and services. The company holds controlling stakes in four A-share listed companies: China Helicopter, Hongdu Aviation, AVIC Systems, and AVIC Jonhon Optronic Technology. Its main business operations cover helicopters, trainer aircraft, general aviation aircraft, airborne systems and aviation components, as well as aviation engineering services.

Zhejiang Securities believes that with ongoing geopolitical conflicts in 2025, China's military export equipment has been tested in overseas conflicts, and led by the military trade sector, China's defense industry enterprises are expected to undergo value revaluation.

Industrial Securities also noted that looking ahead to the next two months, the September 3rd military parade represents a significant milestone that will attract high public attention and is expected to continue catalyzing sentiment in the defense sector.