Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][5]. Core Insights - The company is the only listed platform under the China Electronics Technology Group Corporation 28th Research Institute, specializing in civil air traffic management and urban governance solutions [1][16]. - The low-altitude economy is gaining momentum, with supportive policies from both central and local governments, indicating a favorable environment for growth in this sector [1][2]. - The company holds the leading market share in domestic civil air traffic automation systems, benefiting from the national goal to increase the domestic production rate of air traffic management systems to 80% by 2025 [2][60]. Summary by Sections Company Overview - Established in 1988, the company provides information technology solutions for civil air traffic management, urban traffic management, and urban governance [1][16]. - The company is controlled by China Electronics Technology Group, holding 60.32% of the shares [1][16]. Business Growth and Market Position - The company has a leading position in the civil air traffic management sector, with a market share exceeding 40% [33][52]. - Revenue from civil air traffic management reached 626 million yuan in 2024, growing by 13.68% year-on-year [33]. - The urban traffic management segment is the largest revenue contributor, with 671 million yuan in 2024, reflecting a 33.47% increase [33]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are 1.855 billion yuan, 2.176 billion yuan, and 2.511 billion yuan, respectively [3]. - The net profit attributable to the parent company is expected to be 153 million yuan in 2025, 200 million yuan in 2026, and 257 million yuan in 2027 [3]. Industry Trends - The civil aviation sector is experiencing rapid growth, with a 5.9% increase in flight operations and a 15.9% increase in passenger throughput in 2024 [37][40]. - The government has introduced various policies to support the development of the civil aviation industry, emphasizing the need for advanced air traffic management systems [40][60]. Investment Strategy - The company plans to utilize IPO proceeds to enhance its existing smart command and control capabilities, focusing on the development of new-generation smart civil aviation and traffic management platforms [34].