Group 1 - The core viewpoint of the article highlights that Xirui (02507) has seen a significant increase in delivery volume, with a year-on-year growth of 31% in the first half of the year, leading to a market share of 24.4% [1] - Xirui delivered 350 aircraft, demonstrating strong market adaptability despite a temporary fluctuation in delivery cycles due to the launch of new models, achieving a delivery volume of 200 aircraft with a quarter-on-quarter growth of 33.3% [1] - The report indicates that the global general aviation market is experiencing a notable concentration trend, characterized by a "one super, one strong" competitive landscape [1] Group 2 - In the first half of 2025, the global general aviation aircraft market is projected to show steady growth, with total deliveries reaching 1,432 units, representing a year-on-year increase of 4.3% [2] - The market size is expected to exceed $1.225 billion, reflecting a year-on-year growth of 9.9%, which is significantly higher than the delivery volume growth, indicating a positive trend in market value enhancement [2] - The uncertainty in the general aviation supply chain is gradually easing, with manufacturers recovering production capacity, and market demand remains solid, particularly with the acceleration of backlog order deliveries [2]

Core Viewpoint - The report highlights a significant concentration trend in the global general aviation market by the first half of 2025, characterized by a "one strong, one super" competitive landscape, with Xirui leading the industry in terms of aircraft deliveries and market share [1] Company Summary - Xirui has delivered 350 aircraft with a year-on-year growth rate of 31.0%, holding a market share of 24.4%, demonstrating strong market leadership [1] - Despite a temporary fluctuation in the second quarter due to extended delivery cycles from new model launches, Xirui achieved a delivery volume of 200 aircraft with a quarter-on-quarter growth of 33.3%, showcasing robust market adaptability [1] Industry Summary - The global general aviation aircraft market is projected to show steady growth in the first half of 2025, with total deliveries reaching 1,432 aircraft, representing a year-on-year increase of 4.3% [1] - The market size is expected to exceed $1.225 billion, reflecting a year-on-year growth of 9.9%, significantly outpacing the delivery growth rate, indicating a positive trend in market value enhancement [1] - Looking ahead to the second half of the year, uncertainties in the general aviation supply chain are gradually easing, with manufacturers recovering production capacity; strong market demand persists, particularly with the acceleration of backlog order deliveries [1]

Core Viewpoint - The global general aviation aircraft market is showing robust growth, with total deliveries reaching 1,432 units in the first half of 2025, a year-on-year increase of 4.3%, and market size exceeding $1.225 billion, up 9.9% year-on-year, indicating a positive trend in market value enhancement [1][2]. Market Performance - In Q2 2025, the market saw significant improvement, with deliveries reaching 800 units, a quarter-on-quarter increase of 26.6%, despite a slight year-on-year decline of 5.0%. The market size in Q2 was $721 million, a quarter-on-quarter surge of 43.1% and a year-on-year increase of 0.8% [2]. - The demand for general aviation remains resilient despite macroeconomic uncertainties, with a shift towards higher-end products driving market size growth [2]. Delivery Type Differentiation - The delivery types in the first half of 2025 showed a clear differentiation: piston aircraft deliveries reached 810 units, up 5.1% year-on-year, while turbine aircraft deliveries were 622 units, down 3.3% year-on-year. This trend was more pronounced in Q2, with piston aircraft deliveries at 452 units, showing a quarter-on-quarter increase of 26.3% [3]. - The strong performance of piston aircraft is attributed to the growing popularity of personal and leisure aviation, while turbine aircraft face challenges due to higher costs and longer procurement cycles [3]. Competitive Landscape - The competitive landscape in the global general aviation market is becoming increasingly concentrated, characterized by a "one strong, one leading" dynamic. The leading company, Cirrus, delivered 350 units with a year-on-year growth of 31.0%, capturing 24.4% of the market share [4]. - The second player, Daher, delivered 300 units with a year-on-year growth of 19.0%, maintaining strong growth across quarters. Together, these two companies hold over 45% of the market share, highlighting the trend of resource concentration towards leading firms [4]. Structural Opportunities - Key market drivers include strong demand in North America and the Asia-Pacific region, particularly due to the implementation of low-altitude economic policies in China, which inject new growth momentum into the market [5]. - The increasing share of turboprop and jet aircraft deliveries is optimizing product structure and driving up average unit prices. Additionally, demand in specialized applications such as emergency rescue and business travel is expanding the high-end aircraft market [5]. Investment Recommendations - The industry is expected to maintain steady growth in the second half of 2025, with a focus on three investment directions: opportunities for leading companies to increase market share, value opportunities from the rising share of high-end models, and innovation opportunities from new technology applications [6]. - Companies like Cirrus and Daher are expected to benefit from their product advantages and channel capabilities, while innovations such as electric vertical takeoff and landing (eVTOL) and hybrid technologies are anticipated to drive market growth [6].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of CNY 18.17, representing a potential upside of 14.3% from the current price of CNY 15.9 [6][12]. Core Viewpoints - The company has established a dual-engine development model driven by lightweight automotive metal components and general aviation aircraft manufacturing, positioning itself as a leader in several niche markets [2]. - The low-altitude economy is expected to grow significantly, with the company poised to benefit from this trend through its recent acquisition of Volocopter, which enhances its capabilities in the eVTOL sector [10][11]. - The automotive lightweight metal components business is anticipated to grow steadily, supported by the development of the new energy vehicle industry, while the general aviation and eVTOL sectors are expected to thrive in the emerging low-altitude economy [12]. Financial Performance Summary - In 2024, the company achieved revenue of CNY 16.264 billion, a slight increase of 0.35% year-on-year, while net profit decreased by 10.14% to CNY 653 million [3][4]. - The automotive lightweight metal components segment generated revenue of CNY 13.450 billion, accounting for 82.7% of total revenue, with a minor decrease in its share [3]. - The gross margin for 2024 declined by 3.8 percentage points to 16.53%, with the automotive lightweight components and general aviation segments experiencing significant margin pressures [4]. - For Q1 2025, the company reported revenue of CNY 3.567 billion, a year-on-year increase of 0.75%, and a net profit of CNY 275 million, reflecting a growth of 21.3% [5]. Business Segment Analysis - The automotive lightweight metal components business saw a revenue increase of 0.09% year-on-year, with new energy vehicle-related revenue reaching CNY 3.28 billion [3]. - The general aviation business generated CNY 2.814 billion in revenue, marking a year-on-year growth of 1.62% [3]. - The company’s cost control measures resulted in a reduction of the total expense ratio by 1.84 percentage points to 8.92% [4]. Market Outlook - The low-altitude economy is projected to exceed CNY 1 trillion in scale by 2026 in China, with the global low-altitude economy expected to surpass USD 1 trillion by 2040 [11]. - The company aims to integrate Volocopter's advanced eVTOL technologies with its existing manufacturing capabilities to create a comprehensive product matrix, including fixed-wing aircraft, vertical take-off and landing vehicles, and drones [10].