Core Insights - Zhongke Xingtou Co., Ltd. won a bid for a low-altitude economic digital infrastructure project in Hanzhong City for 295 million yuan, focusing on the entire low-altitude economic industry chain [1] - The project aims to establish a comprehensive low-altitude service platform and digital twin center, covering various applications such as emergency rescue and low-altitude logistics [1][2] - Hanzhong City is positioning itself as a model for low-altitude economic development, integrating infrastructure, application scenarios, and policy support [2][3] Group 1 - The project will be headquartered at the Tianhan Grand Theatre and will cover nine counties and two districts, with a planned construction period of three years [1] - The initiative will create a "smart low-altitude" city brand, attracting leading companies in the low-altitude economy to establish an efficient management service system [2] - Zhongke Xingtou plans to leverage the Belt and Road Initiative to develop new models for low-altitude economic applications, focusing on a full-chain system from planning to operation [2][3] Group 2 - In terms of infrastructure, Zhongke Xingtou will assist in planning airport networks and implementing tiered airspace management [3] - The company will develop public service platforms for low-altitude flight and inspection, aiming for an integrated regulatory system [3] - Future efforts will focus on integrating low-altitude management into a systematic operation, contributing to the national low-altitude economic development [3]

国研新经济研究院创始院长朱克力在接受《证券日报》记者采访时表示，低空基础设施是低空经济存在 的基础，为低空经济的稳定运行与蓬勃发展提供着关键支撑。当前，我国低空基础设施建设尚处于初级 阶段，发展迅速，中央和地方共同推进低空基础设施建设，是促进产业转型升级、拓展经济增长空间的 务实举措，对加快培育新质生产力具有重要推动作用。 多点发力协同推进建设 粤开证券发布的研究报告显示，低空基础设施主要分成物理基础设施（硬基建）和信息基础设施（软基 建）两类。"硬基建"主要包括通用机场、起降场（点）等起降设施；"软基建"主要包括低空空域管理平 台、低空飞行服务平台、通信、导航、监视、气象、地图等。 从生产实践看，当前，国内各地在推进低空基础设施建设的过程中往往多点发力，整体上有以下三种模 式：有的地方重点关注"软基建"，以通信、监视等为抓手推动建设取得新进展；有的地方重点关注"硬 基建"，规划、新建不同种类的起降设施；有的地方则兼顾"硬基建"和"软基建"。 今年下半年以来，政策持续加码低空基础设施建设。在国家层面，10月31日，国家发展改革委等部门联 合发布《深化智慧城市发展 推进全域数字化转型行动计划》，提出"支持有条件 ...

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 96.42 per share [1][5][24] Core Views - The company's performance in the first half of 2025 was under pressure, with revenue and net profit declining significantly due to seasonal factors and delayed payments from government projects [1][2] - The company is positioned as a leader in low-altitude information services, with ongoing expansion of its "Tianmu" system across various provinces and cities, which is expected to improve performance in the second half of the year [1][2] - The report highlights the company's strong gross margin improvement and increased R&D investment, indicating a focus on innovation and high-margin business segments [3][4] Summary by Sections Financial Performance - In 1H25, the company reported revenue of RMB 4.57 million and a net loss of RMB 0.31 million, representing a year-on-year decline of 28.4% and an expanded loss [1] - The gross margin for 1H25 was 26.65%, an increase of 4.76 percentage points year-on-year, attributed to a shift towards higher-margin business segments [3] Business Segments - The company's information system development business generated RMB 3.96 million in revenue in 1H25, down 30% year-on-year, with notable contributions from civil aviation and urban traffic management sectors [2] - The report emphasizes the successful implementation of the "Tianmu" solution in various cities and the acquisition of a national-level project, enhancing the company's market position [2] Future Outlook - The company is expected to consolidate its core business and advance local low-altitude information construction, with significant market opportunities projected in the civil aviation sector [4] - The report forecasts a compound annual growth rate (CAGR) for the civil aviation control business of 31.34% from 2024 to 2026, indicating strong growth potential [5][19] Valuation - The report employs a sum-of-the-parts (SOTP) valuation method, projecting a target market value of RMB 157.63 billion for the company, corresponding to a target price of RMB 96.42 per share [5][24]

Core Viewpoint - The development of low-altitude economy is accelerating with the launch of low-altitude flight service platforms in various provinces, which is expected to create a trillion-level market as a nationwide low-altitude traffic network is established [2][10]. Group 1: Low-altitude Flight Service Platforms - Multiple provinces, including Guangdong, Hubei, and Tianjin, have launched low-altitude flight service platforms to enhance low-altitude economic development [1][3]. - The platforms integrate various functions such as low-altitude airspace management, flight services, and data processing, ensuring effective monitoring and emergency response for low-altitude flights [1][3]. - The platforms are designed to support diverse applications, including urban management, logistics, tourism, and emergency services, thereby broadening the scope of low-altitude economic activities [4][5]. Group 2: Industry Infrastructure and Investment - The low-altitude industry framework includes domains such as aviation equipment, new infrastructure, platforms, and applications, with platform development being a prerequisite for industry growth [3][6]. - Local governments are establishing low-altitude economic industry funds, with total scales exceeding 100 billion yuan, to attract investment and support the sector [5]. - The market size of the low-altitude industry is projected to reach 1 trillion yuan, driven by the gradual shift from policy trials to commercial operations [6][10]. Group 3: Corporate Engagement and Innovation - Several listed companies are actively positioning themselves in the low-altitude flight service sector, developing platforms and solutions to support air traffic management and service integration [7][8]. - Companies like New Morning Technology and HaiGe Communication are creating comprehensive low-altitude management services, enhancing operational efficiency and regulatory compliance [7][8]. - The industry is witnessing a trend towards the establishment of interconnected low-altitude traffic networks, although challenges such as data sharing and standardization remain [9][10].

Group 1 - The core viewpoint of the articles highlights the growth potential of the aerospace and defense industry, particularly with the development of low-altitude economy and military modernization efforts leading to increased orders and new market opportunities [1][2] - The CN5082 aerospace and aviation industry index has shown a slight increase of 0.18% as of July 8, 2025, with notable gains in constituent stocks such as Shanghai Hanyun (300762) up 3.02% and China Haifang (600764) up 2.29% [1] - Several provinces, including Guangdong, Hubei, and Tianjin, have launched low-altitude flight service platforms, which are expected to accelerate the development of the low-altitude economy, potentially leading to a trillion-yuan market [1] Group 2 - The aerospace ETF (159227) tracks the CN5082 index and has a high concentration in the defense and military sector, with a weight of 98.2%, making it the purest military ETF in the market [2] - As of June 30, 2025, the top ten weighted stocks in the CN5082 index account for 49.42% of the index, with companies like Guangqi Technology (002625) and AVIC Shenyang Aircraft (600760) among the leaders [2] - The military industry is expected to see a turning point in orders as the "Centenary of the Army Building" goal progresses, with new technologies and products offering greater market flexibility [1]

Core Viewpoint - The launch of the first drone route in Longgang District, Shenzhen, utilizing "5G-A + digital low-altitude platform + drones," aims to enhance the efficiency of document delivery for government and enterprises, marking a significant step in the development of the low-altitude economy [1][5]. Group 1: Technological Integration - The new drone route integrates 5G-A technology with low-altitude intelligent networking, enabling autonomous flight, real-time obstacle avoidance, and precise positioning, with flight error controlled within centimeters [5]. - The service platform developed by China Telecom Shenzhen provides comprehensive flight services, including task application, monitoring, and evaluation, supporting smart services for management and flight personnel [5][6]. Group 2: Economic Impact - The successful first flight of the drone route is expected to enhance the regional smart logistics system, supporting high-density, high-frequency, and safe low-altitude flight operations [6]. - The establishment of the low-altitude fusion communication flight verification test center will support the research, application validation, and standard formulation for low-altitude flight technology [6]. Group 3: Broader Implications - The drone route signifies a leap from the concept of low-altitude economy to practical application, leveraging technologies like 5G communication, Beidou navigation, and quantum security to create a comprehensive logistics network [7]. - The initiative reflects a transformation in urban operation methods, suggesting that efficient movement of documents, goods, and emergency supplies via drones can lead to smarter and more agile cities [7][8]. Group 4: Challenges Ahead - Despite the advancements, challenges remain in addressing the "last mile" issues, such as balancing flight safety with airspace openness and making technology costs more accessible [8].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 84.41 RMB per share [8][25]. Core Insights - The company achieved a revenue of 1.61 billion RMB in 2024, a decrease of 3.9% year-on-year, and a net profit of 129 million RMB, down 2.3% year-on-year, which is in line with preliminary reports [1]. - In Q1 2025, the company reported a revenue of 110 million RMB, a significant decline of 55.5% year-on-year, with a net loss of 15 million RMB, although this represents a 5.1% increase in net profit year-on-year [1]. - The report highlights the company's ongoing expansion in low-altitude information services and anticipates gradual realization of new projects in the "8+N" and airport information sectors [1][4]. Revenue Breakdown - In 2024, the revenue from the civil aviation management segment was 626 million RMB, an increase of 14% year-on-year, while the urban traffic management segment generated 671 million RMB, up 33% year-on-year. However, the urban governance segment saw a decline of 47% year-on-year, generating 269 million RMB due to decreased demand from government clients [2]. - The report indicates that the civil aviation management business is expected to continue to grow, potentially increasing its revenue share as the low-altitude flight platform products expand regionally [2]. Profitability and Cost Structure - The overall gross margin for the company in 2024 was 29.5%, reflecting a slight increase of 1.3 percentage points year-on-year, primarily due to a shift in revenue structure towards the higher-margin civil aviation management business [3]. - The report notes that the gross margins for the civil aviation management, urban traffic management, and urban governance segments were 37.2%, 20.9%, and 28.8%, respectively, with the urban governance segment showing a notable improvement of 9.9 percentage points year-on-year [3]. Future Outlook - For 2025, the company is expected to consolidate its core business and advance the construction of a comprehensive "Smart Connection System" [4]. - The report estimates that the civil aviation management revenue will reach 894 million RMB in 2025, with a projected compound annual growth rate (CAGR) of 31.34% from 2024 to 2026 [5][26]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, projecting a target market value of 13.798 billion RMB for the company, corresponding to a target price of 84.41 RMB per share [25][26]. - The civil aviation management segment is valued at a price-to-sales (PS) ratio of 9x, while the urban traffic management and governance segments are valued at a price-to-earnings (PE) ratio of 68x [5][26].

Core Viewpoint - The 2025 Low Altitude Economy Innovation Ecology Conference aims to accelerate the application of low-altitude economy in Hubei, targeting an industry scale of over 100 billion yuan by 2027 [1][2]. Group 1: Low Altitude Economy Development - Hubei Province has identified low-altitude economy as one of its 12 emerging characteristic industries, with a goal to exceed 100 billion yuan in industry scale by 2027 [2]. - The Hubei Low Altitude Flight Service Platform is expected to be operational by the end of 2024, providing comprehensive services for low-altitude flight activities [2]. Group 2: Infrastructure and Services - The low-altitude flight service platform will integrate various data sources, including communication, navigation, meteorology, and geographical information, to support safe and efficient low-altitude operations [2]. - Currently, Hubei has been approved for 24 low-altitude routes, including 8 manned routes and 15 cargo routes, with an additional 40 temporary routes planned or in operation [3]. Group 3: Experimental Zones and Initiatives - Hubei is promoting the construction of "one core and multiple points" low-altitude comprehensive operation experimental zones, with Wuhan as the central hub [4]. - The "Hundred Cities, Thousand Enterprises" initiative has been launched to stimulate new application scenarios in the low-altitude economy, leveraging policy benefits and technological advancements [5].