HYATECH(SH:688510) Zhongyuan Securities·2024-03-18 16:00Investment Rating - The report does not explicitly state an investment rating for the company Core Viewpoints - The company actively aligns with the national "Two Aircraft Special Project" policy to meet the domestic demand for engine localization, expanding from the mass production of compressor blades to the synchronous R&D and mass production of key components with engine manufacturers [3] - The domestic business of the company has been growing steadily in recent years, offsetting the decline in foreign demand during the pandemic [3] - The company has become a key supplier for the LEAP series of engines, holding over 50% of the low-pressure compressor blade supply market share, which is crucial for the domestically produced C919 aircraft [30][46] Summary by Sections Aerospace Industry - The company has developed advanced forging technology for compressor blades, which enhances engine efficiency and reduces temperature rise significantly [4][10] - The complexity of blade structures is increasing, necessitating new processing methods [6] - The company has made breakthroughs in the manufacturing technology of integral blades, casings, and turbine discs, establishing a reliable production line for these components [13][14] - The domestic compressor blade business is expected to be a key focus for the company over the next three years, with anticipated growth in revenue from this segment [15] Market Potential - China is the world's largest aviation equipment market, yet the domestic large aircraft industry is relatively underdeveloped, relying heavily on imports [29] - The company is well-positioned to benefit from the growth of the domestic aviation market, particularly with the anticipated increase in demand for the C919 aircraft and its engines [34][46] - The report predicts that by 2041, China's civil aviation fleet will reach 10,007 aircraft, representing a significant market opportunity for the company [37][40] Medical Orthopedics - The company has entered the orthopedic implant market, leveraging its advanced forging technology from the aerospace sector [53] - It is recognized as an important qualified supplier for major medical device manufacturers in the Asia-Pacific region [57] - The orthopedic implant market in China is expected to grow significantly, with a projected market size of 764.9 billion yuan by 2027 [71][72]