Group 1 - The low-altitude economy is expected to continue its growth trajectory into 2025, with significant investments and projects underway [1][4] - The total estimated investment for the first phase of the low-altitude new infrastructure project in Shaoxing City is 2.05 billion, marking a record for public bidding in the low-altitude economy sector [3] - The low-altitude economy in China reached a scale of 505.95 billion in 2023, with a growth rate of 33.8%, and is projected to reach 1.5 trillion by 2025 and 3.5 trillion by 2035 [4] Group 2 - Several low-altitude economy companies have secured orders this year, accelerating their product commercialization process, with notable contracts signed for eVTOL aircraft [5] - Over 320 stocks in the A-share market are related to the low-altitude economy concept, with an average increase of 16.66% this year, significantly outperforming the Shanghai Composite Index [5] - A total of 53 stocks in the low-altitude economy sector are expected to see net profit growth rates exceeding 20% in 2025 and 2026, including major players like Changan Automobile and Aihua Group [6]

Core Viewpoint - The development of low-altitude economy in Hengshui, Hebei Province, is gaining momentum, with the establishment of the Taocheng Airport as a hub for aviation training, tourism, and manufacturing, contributing significantly to the local economy [1][3][4]. Group 1: Airport and Infrastructure - Taocheng Airport, approved as a Class B general airport by the Civil Aviation Administration in 2020, covers an area of 20 square kilometers with a total investment of 16.7 billion yuan [1]. - The airport features various facilities including an aviation flight camp, a drone base, an aircraft display and maintenance center, and an aviation sports and leisure complex [1]. Group 2: Economic Impact - The low-altitude industry in Hengshui has reached a production value of over 2 billion yuan, driving related tourism industries to generate nearly 600 million yuan [3]. - The airport has become a training center for civil aviation pilots and is recognized as the largest rotorcraft delivery training center in China [1][2]. Group 3: Training and Development - The airport has trained 320 manned aircraft pilots and over 9,100 drone pilots, reflecting the growing interest in flying among the public [2]. - The introduction of the Slovak "Viper" aircraft assembly line has achieved over 60% localization in production, marking a significant breakthrough in the manufacturing of light aircraft [2]. Group 4: Future Prospects - The airport plans to host several national aviation competitions in 2025, including the "Soaring China" National Low-altitude Unmanned Flight Grand Prix and the China Hengshui Light Aircraft Masters [4]. - There are intentions to seek partnerships with international aviation companies to further promote Hengshui's low-altitude industry on a global scale [4].

Core Insights - The low-altitude economy is expected to drive the transformation and upgrading of China's economic structure, with a market size projected to exceed 6 trillion yuan by 2035 according to the National Integrated Transportation Network Planning Outline [4][19] - Continuous airspace reform provides strong support for the development of the low-altitude economy, with the establishment of a national airspace classification method and the introduction of a dedicated low-altitude economic development department [5][19] - Central and local policies are accelerating deployment, with the first batch of six low-altitude pilot cities already established and a second batch expected to be announced soon [6][19] - The low-altitude application scenarios are diverse, with commercial operations projected to generate over 300 billion yuan in revenue by 2035, driven by demand for eVTOL aircraft and other low-altitude services [7][19] - Infrastructure investment in low-altitude flight is expected to exceed 1 trillion yuan annually, with significant investments planned for takeoff and landing facilities and air traffic management systems [8] Industry Overview - The low-altitude economy encompasses a range of industries, including high-end manufacturing, new energy, and new materials, and is characterized by its strong integration with various sectors [14] - The low-altitude economy is supported by a comprehensive policy framework, with numerous government documents outlining strategic goals and action plans since 2010 [18] - The airspace management reform is crucial for the prosperity of the low-altitude economy, with pilot programs being implemented in key cities to enhance airspace utilization [23] Application Scenarios - The low-altitude economy features rich application scenarios, including consumer, transportation, operational, and emergency safety applications, with significant market potential in leisure, logistics, and public services [26][33] - Current commercial applications are primarily focused on logistics, agriculture, and tourism, with a growing emphasis on integrating low-altitude services into various industries [33] Key Companies and Investment Opportunities - Beneficiary companies in the low-altitude economy include those involved in infrastructure construction (e.g., Huase Group, Sujiao Science and Technology), eVTOL manufacturers (e.g., EHang, XPeng), and suppliers of composite materials and batteries [10] - The eVTOL and drone sectors are expected to play a leading role in the low-altitude economy, with significant growth anticipated in both manufacturing and operational capabilities [28][30]

Investment Rating - The report highlights the low-altitude economy as a strategic emerging industry with significant growth potential, supported by government policies and market forecasts [2][21]. Core Insights - The low-altitude economy is expected to become a new driving force for economic and social development, with a projected market size of approximately 5,060 billion yuan by the end of 2023, potentially reaching 1 trillion yuan by 2026 [2][3]. - The industry encompasses various sectors, including aircraft manufacturing, low-altitude flight, air traffic management, and comprehensive services, indicating a long industrial chain with strong radiating effects [3][4]. - The report emphasizes the importance of eVTOL (electric Vertical Take-Off and Landing) aircraft as a key component of the low-altitude economy, with commercial applications expected to improve traditional aviation financial models [4][27]. Summary by Sections Policy and Market Environment - The central government has prioritized the low-altitude economy as a strategic emerging industry, leading to a surge in supportive policies from various government levels [2][21]. - The establishment of the Low Altitude Economy Development Department by the National Development and Reform Commission marks a significant milestone in the strategic planning and coordination of the industry [17][18]. Industry Structure and Development - The low-altitude economy spans multiple industries, with a focus on aircraft manufacturing and air traffic management as foundational elements [3][4]. - The report identifies a robust industrial foundation in China, particularly in drone and new energy technologies, positioning the country for rapid growth in the low-altitude economy [11][10]. Application Scenarios - The report outlines diverse application scenarios for the low-altitude economy, including logistics, tourism, agriculture, and emergency services, with eVTOL expected to lead in commercial deployment [4][30]. - The demand for commercial drones is anticipated to rise significantly, driven by government initiatives and the expansion of low-altitude logistics routes [33][31]. Technological Advancements - The report discusses the critical role of technological innovation in the low-altitude economy, particularly in the development of eVTOL and autonomous flight systems [13][39]. - The integration of advanced automotive electronics into low-altitude flight control systems is expected to enhance the development of the industry [45][44]. Future Outlook - The low-altitude economy is projected to reshape transportation and logistics, creating new employment opportunities and driving economic diversification [16][14]. - The report anticipates a growing demand for civil helicopters, with a forecasted increase in the fleet size and significant opportunities for domestic manufacturers [35][36].

Financial Data and Key Metrics Changes - The Chinese government has placed significant emphasis on the development of the low-altitude economy, highlighting its strategic importance in national development and the need for a robust low-altitude safety management system [2][9] - The low-altitude economy is seen as a critical area for investment, with companies benefiting from advancements in manned spaceflight [8][24] Business Line Data and Key Metrics Changes - Yihang Intelligent has become the first globally to apply for and receive the operational certificate (OC certificate) for unmanned aerial vehicles, marking a significant step in the low-altitude economy [3][11] - The commercial and industrialization pace in the low-altitude sector has exceeded expectations, particularly in the main manufacturers and financial intelligence sectors [4][12] Market Data and Key Metrics Changes - The low-space industry is expected to show long-term investment value, with a potential second wave of market activity following a period of adjustment [7][21] - Key regions for low-altitude industry development include Guangdong, Anhui, Jiangsu, and the Sichuan-Chongqing area, which have strong industrial clusters and diverse application scenarios [19] Company Strategy and Development Direction - The focus is on core companies in the general aviation sector, particularly those with advanced technology and product lines, as investment opportunities in the A-share market [4][13] - Local governments play a crucial role in the development of the low-altitude economy, especially in promoting the construction of general aviation airports [14] Management's Comments on Operating Environment and Future Outlook - The management emphasizes the importance of a comprehensive low-altitude safety management mechanism for the healthy development of the low-altitude economy [10] - The market environment is currently favorable for dividend assets, with adjustments seen as buying opportunities [22] Other Important Information - The low-altitude economy is viewed as a significant area of focus, with related companies expected to benefit from developments in manned spaceflight [8][24] - The discussion highlighted the importance of top-level design and government investment in the low-space industry [7] Q&A Session Summary Question: What are the key drivers for the second wave of the low-altitude economy? - The second wave is driven by a recent meeting of the Central Political Bureau emphasizing the need for modern air traffic management and the healthy development of the low-altitude economy [9] Question: How does the development of the low-altitude economy relate to traffic safety? - The healthy development of the low-altitude economy is closely linked to the establishment of a comprehensive low-altitude safety management mechanism [10] Question: What are the latest developments of Yihang Intelligent in the low-altitude sector? - Yihang Intelligent has successfully applied for the OC certificate, which will accelerate the standardization of unmanned aerial vehicle operations [11] Question: Why are main manufacturers considered important in the low-altitude economy? - Main manufacturers are now seen as core investment focuses due to the accelerated pace of commercialization in the low-altitude economy [12] Question: What regions should be prioritized for low-altitude industry development? - Regions such as Guangdong, Anhui, Jiangsu, and Sichuan-Chongqing are highlighted for their strong industrial foundations and potential for low-altitude development [19]