Shanxi Securities·2025-06-06 08:18Investment Rating - The report maintains an investment rating of "Outperform-A" for the defense and aerospace industry, specifically highlighting the domestic large aircraft sector [1]. Core Insights - The report emphasizes that China's large aircraft development has faced numerous challenges but has ultimately succeeded with the C919, marking a significant milestone in the country's aviation industry [3]. - It predicts that the demand for large aircraft will shift towards the Asia-Pacific region, with China becoming the largest aviation service market globally within the next two decades [4][50]. - The report identifies China Commercial Aircraft Corporation (COMAC) as the most promising player to disrupt the existing duopoly of Boeing and Airbus in the large aircraft market [5][59]. Summary by Sections 1. Development History of Large Aircraft - The journey of China's large aircraft development began with the Y-10 in the 1970s, which faced numerous setbacks until the successful development of the C919 [20][31]. - The C919 project represents a comprehensive approach to developing a full range of commercial aircraft, including the ARJ21 and the upcoming C929 [36][39]. 2. Global Large Aircraft Market Size and Structure - The report notes that the global demand for large aircraft is increasingly centered around the Asia-Pacific region, driven by robust economic growth and infrastructure development in China [47]. - It forecasts that over the next 20 years, China's airlines will receive 9,323 new aircraft, accounting for 21.3% of global deliveries, with a market value of approximately $1.4 trillion [50]. 3. Domestic Large Aircraft Industry Chain and Recommended Stocks - The report recommends key companies in the large aircraft supply chain, including AVIC Xi'an Aircraft Industry Group (000768.SZ), AVIC Shenyang Aircraft Corporation (600760.SH), and AVIC High-Tech (600862.SH) [2][8]. - These companies are positioned to benefit from the increasing demand for the C919 and other new aircraft models, as well as the growing domestic aviation market [8].