Core Viewpoint - The eVTOL industry is experiencing significant progress in airworthiness certification, with companies like Xiaopeng Huitian and Muyu Tian Aviation making strides in obtaining necessary certifications for their aircraft models [1][3]. Certification Progress - Xiaopeng Huitian's "Land Carrier" flying vehicle (X3-F) had its production license application accepted on May 9, 2023, while Muyu Tian Aviation's AT1300 model's type certificate application was accepted on April 30, 2023 [1]. - The eVTOL aircraft must obtain three key certifications: Type Certificate (TC), Production Certificate (PC), and Airworthiness Certificate (AC) to be legally operated [2]. Industry Insights - The TC is considered the most challenging certification, typically taking 2-3 years to obtain, while the PC and AC are less difficult [3]. - Currently, only two companies, EHang and Fengfei Aviation, have successfully obtained TC, with EHang's EH216-S taking nearly three years for the process [3][4]. Commercial Operations - EHang and Fengfei Aviation have both obtained their PC after receiving TC, with EHang being the only company to hold all four certifications (AC, TC, PC, OC) in China [4]. - The first operational certificate (OC) was issued to EHang's subsidiary and a joint venture, allowing for low-altitude flight services, primarily for sightseeing and experience flights [5][6]. Future Outlook - The issuance of the OC marks a significant step towards the commercialization of low-altitude passenger services and urban air mobility [6]. - EHang plans to expand its operations to include urban commuting and eventually achieve fully autonomous low-altitude transportation services [6].

Core Viewpoint - Despite facing challenges such as insufficient capacity and potential supply chain disruptions due to trade tensions, China Commercial Aircraft Corporation (COMAC) is accelerating the internationalization of its products, with recent successes in the overseas market [2][3]. Group 1: C909 Aircraft Developments - The C909, a regional jet developed by COMAC, has made significant strides in international operations, with Chengdu Airlines wet leasing two C909 aircraft to VietJet Air in April, marking the entry of Chinese commercial aircraft into Vietnam [3][4]. - The C909, originally named ARJ21, has a range of 2,225 to 3,700 kilometers and is designed to accommodate 78 to 90 passengers, targeting short-haul regional routes [3]. - As of March 2025, nearly 300 orders for the C909 have been placed, with 162 aircraft delivered, operating 645 routes and serving 158 cities, transporting over 20 million passengers [3]. Group 2: International Expansion and Partnerships - VietJet Air, Vietnam's first private airline, aims to enhance its fleet capacity and regional route network through the wet lease of C909 aircraft, contributing to the growth of the Vietnamese aviation market [4]. - The C909 has been adopted by three foreign airlines in Southeast Asia, including TransNusa in Indonesia and Lao Airlines, which recently received its first C909 aircraft [5]. - The C909 has facilitated the opening of 15 routes in Southeast Asia, transporting over 250,000 passengers [5]. Group 3: C919 Aircraft and Future Prospects - The C919, another key product from COMAC, faces greater challenges in entering the international market compared to the C909, but there are signs of increasing interest from foreign airlines [6][7]. - COMAC is actively promoting the C919 through international exhibitions and demonstrations, with plans for further exposure in Southeast Asia [8]. - The C919 has received domestic certification and is expected to undergo further evaluations for international certifications, with significant orders already placed [9]. Group 4: Strategic Initiatives and Support - COMAC is establishing an Asia-Pacific office to enhance market services and technical exchanges, aiming to build relationships with international airlines and suppliers [11]. - The company is also collaborating with financial institutions to support the internationalization of its aircraft, with a focus on increasing production capacity to meet demand [10][12]. - Plans are in place to increase the annual production capacity of the C919 from 30 to 50 aircraft by 2025, with a new assembly facility under construction in Shanghai [11].

Investment Rating - The report maintains an "Accumulate" investment rating for the defense and aerospace industry [2]. Core Insights - The domestic aviation industry is witnessing a significant ramp-up in production capacity, particularly for the C919 aircraft, with expected deliveries to reach 50 units in 2025, significantly surpassing 2024's figures [2][25]. - The C919's international market expansion is progressing, with the European Union Aviation Safety Agency (EASA) certification process underway, which is crucial for entering the European market [6][51]. - The report highlights the robust domestic demand for aircraft, predicting that China will become the largest aviation market globally by 2043, with an estimated 10,061 aircraft needed, valued at approximately $1.4 trillion [52][53]. Summary by Sections Domestic Aviation Industry Analysis - The C919 aircraft is set to enter a new phase of commercial operation, with significant orders from major airlines, totaling over 300 units in 2024 [21]. - The C919 has already commenced operations on 15 domestic routes, with nearly 8,000 flights conducted [22]. - A series of regional mobilization meetings have been held to enhance collaboration within the aviation supply chain, facilitating the C919's production scale-up [26][28]. International Aviation Market Analysis - Boeing and Airbus reported their 2024 performance, with Airbus consistently outperforming Boeing in both orders and deliveries over the past three years [7][8]. - The report notes that Boeing's commercial aircraft deliveries are expected to recover in 2025, while Airbus anticipates a 7% increase in deliveries [9]. Capital Market Situation - The report outlines the ongoing construction projects in Shanghai related to the C919, which are crucial for supporting its production capacity [31][32]. - The establishment of a comprehensive supply chain around the C919 in Shanghai is highlighted, with significant investments and projects aimed at enhancing production capabilities [30][29].