Investment Rating - The report maintains an "Overweight" rating for the low-altitude economy sector [3][36]. Core Insights - The low-altitude economy index increased by 9.8% this week, with an average daily trading volume of 31.152 billion yuan, indicating a significant rise in market activity and valuation [3][13]. - The military performance of Chinese weaponry in the India-Pakistan conflict has led to a reevaluation of the aerospace sector's value, particularly in the military industry [3][13]. Sector Performance - The low-altitude economy index outperformed the Shanghai and Shenzhen 300 index by 7.92% this week [3][13]. - The price-to-earnings ratio (TTM) reached 96.48, placing it in the 99.58% percentile over the past year [3][13]. - The average daily net inflow of main funds was 254 million yuan, indicating a shift towards net inflows from major investors [3][13]. Individual Stock Performance - The top five performing stocks this week were Chenxi Aviation, Aerospace Nanhu, Aileda, Sichuan Electronics, and Andavil, with significant weekly gains [4][18]. - Conversely, the five stocks with the largest declines included Wolong Electric Drive, Yingboer, Bozhong Precision, Xiaopeng Motors-W, and *ST Shengxun [4][18]. Industry Dynamics - The report highlights the release of the "2024 County (District) Low-altitude Economy Industry Development Index Report," which evaluates various indicators across leading counties and cities [5][22]. - A low-altitude regulatory service platform has been established in Qingdao, enhancing the management and monitoring of low-altitude airspace [5][22]. - Four major low-altitude economic projects have been signed in Shanghai's Qingpu District, focusing on various aspects of the low-altitude economy [5][23]. Policy Developments - Sichuan Province has issued several policy measures to support the development of the low-altitude economy, including financial support for the construction of general airports and low-altitude management systems [6][31]. Key Company Developments - Wofei Chang Kong has signed a strategic agreement with China Construction Bank and Jianxin Financial Leasing, securing a total financing amount of 6 billion yuan, marking the highest financing leasing credit in the domestic eVTOL sector [7][32]. - Zero Gravity showcased its ZG-ONE "Que Fei" model at the 2025 World Expo in Osaka, Japan, highlighting advancements in Chinese aviation technology [7][35]. - Zongheng Co., Ltd. has won bids for low-altitude projects in Sichuan, indicating active participation in the sector [7][35].

Financial Performance - In Q1 2025, the company achieved an operating income of 3.308 billion yuan and a net profit attributable to shareholders of 156 million yuan, with a net profit excluding non-recurring items of 129 million yuan [1] - The company proposed a cash dividend of 6.23 yuan per 10 shares, totaling 1.665 billion yuan, and plans to repurchase and cancel 4.691 million shares, which will enhance earnings per share [1] Technological Advancements - The company, in collaboration with Tsinghua University, successfully developed a 50kg hydrogen-powered drone that completed a 30-hour continuous flight, setting a domestic record and achieving international leading endurance levels [2] - The drone's flight utilized autonomous release technology from a ground vehicle and validated its use in non-standard runway conditions, showcasing its capabilities for real-time data transmission [2] Smart Manufacturing Initiatives - The company's "black light factory" was recognized as an "excellent intelligent factory" and awarded the "Best Practice in Chinese Intelligent Manufacturing" by the Ministry of Industry and Information Technology in 2024 [3] - The factory focuses on automation, digitalization, and intelligence, enhancing production reliability and product quality through advanced data collection and monitoring systems [3] Industry Recognition and Future Plans - The company received the first prize for modern management innovation at the 31st National Enterprise Management Innovation Conference for its smart workshop group construction, which integrates data, information, and operational technologies [4] - Plans include the continued integration of AI, big data, cloud computing, and digital twin technologies to create a leading smart manufacturing demonstration workshop group for high-end aviation equipment [4] Collaborative Innovation - The National High-end Aviation Equipment Technology Innovation Center hosted an international academic conference on smart factory technology, attracting over 200 industry experts from seven countries [5] - The conference aimed to foster academic exchange and collaboration between academia and industry, promoting technological research and industrial upgrades [5]

Group 1 - The company achieved a revenue of 3.308 billion yuan and a net profit of 156 million yuan in Q1 2025, with total assets of 118.505 billion yuan and shareholders' equity of 1.960 billion yuan [1] - The company announced a cash dividend distribution of 1.664 billion yuan, equivalent to 6.23 yuan per 10 shares (tax included), and a share buyback of 4.691 million shares, which will enhance earnings per share [1] - The company has made significant advancements in technology innovation, including the successful development of a 50kg hydrogen-powered drone that achieved a 30-hour continuous flight, setting a domestic record and demonstrating international leading endurance capabilities [1] Group 2 - The company's "black light factory" was recognized as an "excellent intelligent factory" and awarded the "Best Practice in Chinese Intelligent Manufacturing" by the Ministry of Industry and Information Technology in 2024 [2] - The "black light factory," established in 2022, focuses on automation, digitalization, and intelligence, enhancing production reliability and product quality through advanced technologies [2] - The company plans to continue integrating artificial intelligence, big data, cloud computing, and digital twin technologies to create intelligent manufacturing scenarios for high-end aerospace equipment [2]