Investment Rating - Strongly Recommended (Maintain) [3] Core Views - The report highlights that the Zongshen Aviation CA500 piston engine has successfully completed airworthiness review, filling the gap in domestic light sport aviation power [1][6] - The CA500 engine is set to become the first domestic aviation power product to meet CAAC airworthiness requirements and ASTM F2339 international standards, showcasing advanced materials and high efficiency [6] - The company is positioned as a leading enterprise in general power machinery and motorcycle engines in China, benefiting from the growth in military drones and low-altitude economy [6] Financial Data and Valuation - Total revenue is projected to grow from 8,151 million yuan in 2023 to 18,701 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 15% [2][8] - Operating profit is expected to increase significantly from 428 million yuan in 2023 to 1,853 million yuan in 2027, reflecting a growth rate of 126% in 2025 [2][8] - Net profit attributable to shareholders is forecasted to rise from 362 million yuan in 2023 to 1,444 million yuan in 2027, with a notable increase of 134% in 2025 [2][8] - Earnings per share (EPS) is anticipated to grow from 0.32 yuan in 2023 to 1.26 yuan in 2027 [2][8] - The price-to-earnings (PE) ratio is projected to decrease from 75.3 in 2023 to 18.9 in 2027, indicating improved valuation as earnings grow [2][8] Stock Performance - The stock has shown strong absolute performance, with a 12-month increase of 144% compared to the CSI 300 index [5] - The current stock price is 23.82 yuan, with a total market capitalization of 27.3 billion yuan [3] Company Overview - Zongshen Power has established five aviation piston engine platforms and over 20 aviation piston power products, breaking the foreign monopoly in this sector [6] - The company has successfully exported products to over 30 countries, including Germany, France, and Italy, and has obtained airworthiness certifications in France and Germany [6]