Core Viewpoint - The article discusses the specific measures taken by various cities in the Pearl River Delta region to promote technological innovation and industrial upgrading, with a focus on artificial intelligence, robotics, and semiconductors as key areas of development [3]. Summary by Sections Focus on Core Industries - Guangzhou has included artificial intelligence and low-altitude economy in its "12218" modernization industrial system, planning to enhance the business environment and optimize resource allocation [5][6]. - The city aims to establish a unique artificial intelligence industrial ecosystem and develop significant platforms for low-altitude economy, including the construction of various manufacturing bases [6]. Industrial Development Plans - Dongguan is focusing on technology-driven industries, particularly artificial intelligence and robotics, while also emphasizing quality and brand development to enhance its manufacturing competitiveness [7]. - Huizhou plans to establish an artificial intelligence and robotics bureau and leverage its strengths in hardware manufacturing, with notable companies already leading in various sectors [7][8]. Collaborative Efforts - Shenzhen, Dongguan, and Huizhou are seeking collaboration in the field of artificial intelligence, with Shenzhen's mayor highlighting the establishment of a national AI application pilot base [8]. - Dongguan aims to connect high-end resources from Hong Kong and the Greater Bay Area to foster innovation and technological advancements [8]. Achievements in Technological Innovation - Shenzhen has reported significant growth in its industrial output, with strategic emerging industries like semiconductors and AI showing double-digit growth [11]. - Huizhou's "2+1" industrial layout has led to substantial achievements in petrochemical and electronic information sectors, with both industries exceeding trillion-yuan scales [11][12]. Future Industry Development - Zhuhai is focusing on emerging industries and plans to accelerate the development of AI and robotics, with a goal of achieving over 20% growth in these sectors by 2025 [12].

Core Viewpoint - Desai Battery (000049.SZ) is primarily engaged in lithium battery-related businesses, with products widely used in various end products such as smartphones, laptops, smart wearable devices, power tools, energy storage, new energy vehicles, drones, and cleaning robots [1] Group 1 - The company is actively exploring application opportunities for lithium battery-related products in emerging smart terminals and low-altitude economy scenarios [1] - The company is making efforts to expand its related business [1]

Core Viewpoint - Desai Battery (000049.SZ) is primarily engaged in lithium battery-related businesses, with products widely used in various end products such as smartphones, laptops, smart wearable devices, power tools, energy storage, new energy vehicles, drones, and cleaning robots [1] Group 1 - The company is actively exploring application opportunities for lithium battery-related products in emerging smart terminals and low-altitude economy scenarios [1] - The company is making efforts to expand its related business [1]

Core Insights - The low-altitude economy is projected to reach a market size of 1.5 trillion yuan by 2025 and 3.5 trillion yuan by 2035, becoming a core track for cultivating new productive forces and emerging industries [4][26] - The year 2026 is seen as a pivotal year for the low-altitude economy, marking the transition from concept validation to scenario application [2][24] - The Chinese government has elevated the low-altitude economy to a strategic emerging industry, with multiple policies and frameworks established to support its development [6][28] Market Potential - The low-altitude economy market in China surpassed 500 billion yuan in 2023, reaching 505.95 billion yuan, with a projected growth of 32.5% to 670.25 billion yuan in 2024 [4][26] - The number of registered low-altitude economy-related enterprises increased significantly, with a forecast of 49,000 registrations by 2025, marking a year-on-year growth of 142.26% [2][24] Policy Support - The low-altitude economy was included in national planning for the first time in February 2021, and it has been recognized as a strategic emerging industry in subsequent government reports [6][28] - The establishment of the Low Altitude Economy Development Department by the National Development and Reform Commission aims to coordinate the advancement of the low-altitude economy [6][28] Industry Structure - The low-altitude economy industry is concentrated in three major economic zones: the Greater Bay Area, Yangtze River Delta, and Beijing-Tianjin-Hebei, which together form the leading tier of development [7][29] - As of January 2023, there were approximately 163,000 active low-altitude economy-related enterprises in China, with significant concentrations in East and South China [7][29] Technological Advancements - The low-altitude economy has developed a complete industrial chain encompassing low-altitude manufacturing, operation, infrastructure, and information services [10][32] - China leads globally in drone research and design, with over 77,000 drone R&D companies, including major players like DJI [10][32] Investment Trends - Investment in the low-altitude economy is on the rise, with 143 financing events recorded in the first half of 2025, a 120% increase year-on-year [15][37] - The stock market has seen significant interest, with 17 concept stocks doubling in price since 2024, indicating strong investor confidence [15][37] Application Scenarios - The low-altitude logistics market is expected to grow rapidly, with projections of reaching 120 to 150 billion yuan by 2025 and 450 to 605 billion yuan by 2035 [11][33] - Companies like WanFeng Aviation are developing comprehensive applications for fixed-wing aircraft, eVTOL, and drones, covering various transportation scenarios [12][34] Challenges Ahead - The low-altitude economy faces challenges in infrastructure development, regulatory frameworks, and technological breakthroughs, which are essential for scaling operations [40][41] - Key issues include the reliance on imported components, high operational costs, and the need for a stable business model to ensure sustainable growth [40][41]

Group 1 - The construction of the Guangdong-Hong Kong-Macao Greater Bay Area, the establishment of a modern industrial system, and the expansion of high-level opening-up are key topics of discussion among provincial representatives [1] - The provincial government aims to ensure a good start for the "14th Five-Year Plan" and emphasizes the importance of implementing Xi Jinping's thoughts and policies to guide practical work [2][3] - The government is focused on maintaining a people-centered approach, addressing urgent issues faced by the public, and promoting a clean political environment to support high-quality development [2][4] Group 2 - The provincial government work report is recognized for its high political stance and practical guidance, aligning with the spirit of the 20th National Congress and subsequent meetings [3][5] - There is a strong emphasis on the role of the People's Congress in promoting democracy and law, ensuring effective governance, and supporting the construction of a competitive modern industrial system [4][6] - The report highlights the need for legislative support in various sectors, including technology independence, education, and consumer demand, to enhance the overall development of the province [4][7] Group 3 - Suggestions for developing the low-altitude economy include establishing a special fund for infrastructure investment, leveraging public-private partnerships [7] - The government is encouraged to implement policies for the resource utilization of oyster shells, promoting sustainable practices in agriculture [7] - A proposal to create a dynamic agricultural product circulation system is made to improve efficiency and support the entire agricultural value chain [7] Group 4 - The importance of social security in rural revitalization and income growth for farmers is emphasized, with calls for deeper integration of social assistance with local industries and employment support [8]

Investment Rating - The report maintains a "Recommended" investment rating for the industry [7] Core Insights - The low-altitude economy is experiencing steady development, with significant policy advancements in vertical industry empowerment and new tourism scenarios [3] - The engineering machinery sector is expected to maintain a steady growth trend, supported by strong competitive advantages of domestic leading enterprises in both supply and demand [4] Weekly Market Review - From January 18 to January 23, 2026, the Shanghai Composite Index rose by 0.84%, and the Shenzhen Component Index increased by 1.11%. The machinery equipment sector outperformed, rising by 2.57%, which is 3.19 percentage points higher than the CSI 300 Index, ranking 13th among 31 primary industries [12] - Sub-sectors such as general equipment, specialized equipment, rail transit equipment II, engineering machinery, and automation equipment saw increases of 3.33%, 2.55%, 2.59%, 1.33%, and 2.29% respectively [12][15] Key Sector Tracking - The low-altitude economy is projected to promote over 10,000 agricultural drones and train over 10,000 operators by 2030 in Fujian Province, with a target operational service area of 25 million acres annually [3] - The tower crane rental industry’s utilization rates were reported at 55.1% and 56.8% for tower crane days and maximum lifting moment respectively, indicating a slight decrease from the previous month [4] Investment Recommendations - For the low-altitude economy, recommended companies include Shen Cheng Jiao, Su Jiao Ke, Hua She Group, and Na Rui Radar. In the complete machine sector, focus on Wan Feng Ao Wei, Yi Hang Intelligent, Zong Heng Co., and Green Energy Hui Chong. Key component manufacturers to watch include Zong Shen Power, Wo Long Electric Drive, Ying Liu Co., and Ying Bo Er. In air traffic management and operations, consider CITIC Heli, Zhong Ke Xing Tu, and Sichuan Jiu Zhou [5] - In the machinery equipment sector, recommended companies include Ju Xing Technology, Quan Feng Holdings, and Jiu Hao Company for the export chain. For engineering machinery, focus on Sany Heavy Industry, Xugong Machinery, and Anhui He Li. In the industrial mother machine sector, watch Hua Zhong CNC, Ke De CNC, and Heng Li Hydraulic [5]

Core Viewpoint - The meeting of the Provincial Political Consultative Conference focused on various sectors including tourism consumption, modern logistics, low-altitude economy, and the development of small and medium-sized enterprises, with members actively providing targeted suggestions [2] Group 1: Tourism Consumption - Members discussed the importance of enhancing tourism consumption as a key driver for economic growth [2] Group 2: Modern Logistics - The dialogue included suggestions for improving modern logistics to boost efficiency and support other industries [2] Group 3: Low-altitude Economy - The low-altitude economy was highlighted as a potential area for development, with members proposing strategies to leverage this sector [2] Group 4: Small and Medium-sized Enterprises - There were numerous recommendations aimed at fostering the growth and sustainability of small and medium-sized enterprises [2]

Investment Rating - The report maintains a "Buy" rating for the industry, indicating a positive outlook for investment opportunities [7]. Core Insights - The low-altitude economy is experiencing steady development, with significant policy advancements in vertical industries and tourism, particularly in agricultural applications of drones [3]. - The engineering machinery sector is expected to maintain steady growth, supported by strong competitive advantages of domestic leading enterprises in both supply and demand [4]. - The overall performance of the machinery equipment sector has outperformed the broader market indices, with a weekly increase of 2.57% compared to the Shanghai Composite Index [12]. Weekly Market Review - From January 18 to January 23, 2026, the Shanghai Composite Index rose by 0.84%, while the Shenzhen Component Index increased by 1.11%. The machinery equipment sector outperformed, with a 2.57% increase, ranking 13th among 31 sectors [12][20]. - Sub-sectors such as general equipment, specialized equipment, and engineering machinery saw increases of 3.33%, 2.55%, and 1.33% respectively [12][15]. Key Sector Tracking - The low-altitude economy is projected to promote agricultural productivity, with specific targets set for the deployment of agricultural drones and the training of drone operators by 2030 in Fujian Province [3]. - The engineering machinery sector's tower crane rental industry reported a utilization rate of 55.1% in December 2025, indicating a slight decrease but still reflecting a robust market [4]. Investment Recommendations - For the low-altitude economy, recommended companies include Shen Cheng Jiao, Su Jiao Ke, and Hua She Group. In the complete machine segment, focus on Wan Feng Ao Wei and Yi Hang Intelligent [5]. - In the machinery equipment sector, recommended companies include Sany Heavy Industry, XCMG, and Anhui Heli for engineering machinery, and Huazhong CNC and Kede CNC for industrial mother machines [5].

Group 1 - Hebei Jieshuang Aviation Technology Co., Ltd. has developed a quadcopter drone that can act as an "aerial firefighter" using AI fire detection technology to extinguish initial fire sources in forests, mountains, and grasslands [3][10] - The company relocated from Wuhan to Baoding in 2024 and operates in the low-altitude economy sector, covering the entire industry chain of drone research and development, manufacturing, technical services, and flight training [3][10] - The local government in Baoding has provided comprehensive support to the company, including policy interpretation, financial assistance, and talent recruitment, establishing partnerships with local universities for drone training [3][10] Group 2 - Baoding City has launched a "ranking list" initiative to promote the transformation of scientific and technological achievements, releasing 12 batches of 319 lists, with 153 successfully recognized and 90 receiving project support, amounting to 38.5 million yuan in funding, which has effectively stimulated 467 million yuan in corporate R&D investment [5][10] - ChipRise Technology Co., Ltd., a subsidiary of China Mobile focused on chip development, has established a pilot base in Xiong'an New Area, with production expected to start in March 2025, aiming for an annual output of over 100 million chips [5][11] - The Xiong'an New Area is actively supporting the development of a RISC-V innovation city, with a 3,000 square meter production line already in operation, projecting a capacity of 450 million to 500 million chips [11]

Core Viewpoint - Guangzhou is implementing various initiatives to enhance its role as a comprehensive gateway, focusing on urban development, transportation, and international collaboration to boost its global influence and economic growth [2][3][4]. Group 1: Urban Development and Transportation - Guangzhou will establish vertical take-off and landing points in iconic areas like the Canton Tower and Baiyun Mountain to launch the "Aerial View Guangzhou" product [2]. - The city aims to create a multi-dimensional transportation network, enhancing its capacity to attract global high-end resources through air, sea, and land connectivity [3]. - Major projects include the construction of the Nansha Port International General Terminal and the expansion of Baiyun Airport's peak hour capacity [3][8]. Group 2: Economic and Industrial Strategy - Guangzhou is focusing on six key advantages: international trade, advanced manufacturing, innovation, hub connectivity, openness in the Greater Bay Area, and consumer market scenarios to strengthen its global supply chain capabilities [3]. - The city plans to develop strategic emerging industries such as artificial intelligence and low-altitude economy, positioning itself as a "Vertical Model Capital" and a "World-Class Low-Altitude Industry Ecosystem City" [5][6]. Group 3: International Collaboration and Market Integration - Guangzhou is actively participating in the Belt and Road Initiative and enhancing the operation quality of the China-Europe Railway Express, aiming to establish itself as a southern hub connecting ASEAN and the world [4][8]. - The city is working on facilitating cross-border movement of people and goods, improving financial market connectivity, and enhancing data flow across borders to promote market integration in the Greater Bay Area [8][9]. Group 4: Innovation and Talent Development - Guangzhou is optimizing the supply of key factors such as funding and talent, establishing various investment funds to support the lifecycle of industries [6]. - The city is committed to integrating green and digital technologies into industrial upgrades, aiming for over 1,000 industrial enterprises to undergo technological transformation and digitalization by 2026 [6].