DFSS(SH:603377) GUOTAI HAITONG SECURITIES·2025-06-16 11:06Investment Rating - The report does not explicitly state an investment rating for the low-altitude flight training industry Core Insights - The low-altitude market is thriving, with both manned and unmanned aircraft flourishing, highlighting the increasing importance of flight training as a critical infrastructure for development [7] - There is a significant supply-demand imbalance in both the general aviation and drone training markets, with the general aviation training market facing a contraction in demand while the drone training market is experiencing rapid supply expansion [54] Summary by Sections 1. Pilot License Requirements - General aviation licenses are more stringent than drone licenses, with a four-tier management system established by CAAC for various pilot licenses [2][8] - Drone licenses follow a tiered management structure based on weight and operational type, with a focus on safety and compliance costs [14][15] 2. Supply-Demand Dynamics in General Aviation and Drone Sectors - The general aviation training market is oversupplied, with a projected 3,650 pilots for 1,982 aircraft by the end of 2024, indicating no significant overall shortage [21][31] - The number of drone operator licenses has increased over five times from 2018 to 2024, with a CAGR of 35%, although the actual demand for drone pilots is overstated [47][49] 3. Market Challenges and Transformations - The general aviation training market is expected to face a clearing and transformation due to a mismatch between supply and demand, with a training vacancy rate rising to 18.2% by 2024 [55][66] - The rapid expansion of drone training institutions, from fewer than 500 in early 2024 to 2,690 by mid-2025, raises concerns about potential oversupply in the industry [66][67]