Analysis of Great Wall Military Industry (601606.SH) Stock Price Limit-Up: Driven by Military Sector Strength and Capital Inflow

Great Wall Military Industry (601606.SH), a listed company in the military industry, achieved a stock price limit-up (+10.0%) on November 24, 2025, closing at 57.43 yuan [7]. On the same day, the net inflow of main funds was 842 million yuan, ranking second in the main capital increase of Shanghai A-shares [1]. Its rise is not an isolated event but a microcosm of the overall outbreak of the military sector—over 5 billion main funds poured into the national defense and military sector, and the National Defense and Military ETF rose by more than 2% against the market [5].

1. Policy and Geopolitical Resonance
   : The 20th Central Committee’s 4th Plenary Session proposed to “achieve the centenary goal of building the army as scheduled”, and policy benefits support industry valuation [6]; against the background of multiple global conflicts, the importance of national defense security has increased, further catalyzing the sector’s market [0].
2. Concentrated Capital Inflow
   : Great Wall Military Industry has increased by 282.49% this year, with a 52-week price range of 10.68-77.07 yuan, and trading volume has increased significantly (the highest single-day trading volume is 86.01 million shares), indicating extremely high market investment enthusiasm [0].
3. Fundamental Improvement
   : The 2025 third-quarter report shows that the military sector’s revenue increased by 16.99% year-on-year, and the net profit attributable to parent company increased by 14.01% year-on-year, which fundamentally supports the stock price rise [0].

• Opportunities
  : The policy dividends of the military sector continue to be released, the industry prosperity is rising, and Great Wall Military Industry, as a leading company in the sector, is expected to continue to benefit [6].
• Risks
  : The short-term increase in stock price is too large, and there is a risk of correction; changes in geopolitical situation may lead to increased volatility in the sector [0].

The rise of Great Wall Military Industry reflects the overall strength of the military sector, and its core driving factors include policy support, capital inflow, and geopolitical catalysis. Investors need to pay attention to the sustainability of the sector and changes in the company’s fundamentals, and rationally view short-term fluctuations.