ZG Lightning Protect and the Surge in the Military and Aerospace Sector
On June 26, 2025, the Shenzhen Stock Exchange witnessed a significant surge in the military and aerospace sector, with ZG Lightning Protect (300414) among the companies experiencing a notable rise. The company’s stock reached its highest level in over eight years, marking a 7-day streak of six consecutive days hitting the upper limit, and a 4-day streak of three consecutive days hitting the upper limit.
Market Dynamics and Sector Performance
The A-share market showed a slight fluctuation on this day, with the main stock indices experiencing mixed movements. However, the military and aerospace sector, along with solid-state batteries, film and television, and synthetic diamonds, led the gains. In contrast, the automotive, logistics, pharmaceuticals, and daily chemicals sectors faced declines.
Military and Aerospace Sector’s Strong Performance
The military and aerospace sector continued its robust performance, with the ground equipment index soaring nearly 9% the previous day and continuing its upward trajectory. Companies like Longchang Aerospace and Beifang Navigation saw their stocks hit the upper limit, with Longchang Aerospace achieving a 7-day streak of six consecutive days at the upper limit and setting a new historical high. The sector’s sub-segments, including military trade, military-civil fusion, commercial space, and large aircraft, also reached new historical highs.
Global Context and Investment Outlook
The backdrop of easing tensions in the Middle East, coupled with statements from former U.S. President Trump about potential future conflicts, has underscored the sustained demand for military equipment in the region. Analysts from Dongfang Securities and China Aviation Securities highlighted the industry’s superior asset quality, updated growth trajectory, larger business scale, and higher market ceiling, suggesting a reshaping of the industry’s valuation system.
Solid-State Batteries Breakthrough
In the realm of solid-state batteries, the sector continued its upward momentum, with the index reaching a new high in nearly three years. The announcement by QuantumScape, a U.S.-listed company, about integrating its Cobra membrane technology into standard battery production lines marked a significant technological breakthrough, enhancing production speed and efficiency.
ZG Lightning Protect’s Strategic Positioning
ZG Lightning Protect’s recent performance can be attributed to its strategic positioning in low-altitude economy applications, military applications, and 5G/6G anti-lightning communication technologies. The company’s products have been applied in aircraft lightning protection devices and are being explored for use in flying car domains, including large unmanned aerial vehicles’ electromagnetic protection.
Investment and Market Outlook
The surge in the military and aerospace sector, along with the breakthroughs in solid-state battery technology, presents a favorable investment landscape. The National Defense ETF (512670) also saw a 1.6% increase, reaching a new high in scale, reflecting the sector’s strong performance and investor confidence.
As the global geopolitical landscape remains uncertain, the military and aerospace sector, along with solid-state battery technology, are poised for continued growth, offering promising opportunities for investors and companies like ZG Lightning Protect.