Investment Rating - The report suggests a focus on companies such as Rolls-Royce, Howmet Aerospace, LOAR, Safran, VSE Corporation, HEICO, and BAE Systems for investment opportunities Core Insights - The aerospace engine industry is characterized by high technological barriers and market concentration, dominated by a few key players like GE Aerospace, Rolls-Royce, Pratt & Whitney, and Safran, which control core technologies and aftermarket services [1][3] - The MRO segment accounts for 50-60% of the engine's lifecycle value, providing stable revenue sources for the industry [1] - The design goals for civil and military engines differ significantly, with civil engines focusing on fuel efficiency and longevity, while military engines prioritize thrust and maneuverability [2][3] - Continuous technological innovations, such as compatibility with sustainable aviation fuels and digital applications, are driving industry advancements and reinforcing competitive advantages for existing players [2][3] Summary by Sections Section 1: Aerospace Engines - Aerospace engines are crucial for aircraft performance, accounting for 20-30% of the total aircraft cost [7] - The main types of aerospace engines include piston engines and gas turbine engines, with gas turbines being the dominant type in modern aviation [33][34] Section 2: Global Aerospace Engine Industry - The global aerospace engine market is highly concentrated, with major players like GE/CFM, Rolls-Royce, and Pratt & Whitney holding over 90% of the market share in large civil aircraft [52] - The industry value chain includes design and research, manufacturing, and MRO services, with MRO being a significant profit source for OEMs [52][53]