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]