马年伊始，上海市委副书记、市长龚正今天（2月25日）来到闵行区、徐汇区，走访服务重点企业，实 地了解企业经营发展情况，并与企业负责人座谈交流，听取意见建议，开展现场办公。龚正指出，要深 入贯彻落实习近平总书记考察上海重要讲话精神，按照市委部署，加强重点企业走访服务，主动上门送 政策、送服务、送关怀，让创新举措惠及各类经营主体，千方百计为企业排忧解难，持续打造一流营商 环境，为企业扎根上海、做大做强提供有力支撑。 （本文图片 张春海 摄） 上午，龚正一行来到中国航发商用航空发动机有限责任公司，详细了解长江系列发动机研发进展、模式 创新、队伍建设及未来规划，询问企业发展中有什么需要协调解决的问题。龚正说，中国航发商发肩负 着打造国家航空动力"中国心"的重大使命。希望加大自主创新力度，加强政产学研金服用协同创新，聚 力突破更多关键核心技术，努力成为航空发动机创新突破的策源地。希望发挥好"链主"企业作用，带动 航空发动机产业链上下游企业集聚，推进科研成果转化落地，共同构筑安全可靠的产业链供应链体系、 打造协同高效的产业生态，为实现高水平科技自立自强贡献更大力量。 在走访腾讯科技（上海）有限公司时，龚正说，实现"十五五 ...

Investment Rating - The industry rating for the defense and aerospace sector is "Recommended" [1] Core Insights - The domestic long-range engine, Changjiang series, has entered a critical certification phase, marking a significant turning point for the large aircraft sector [1] - The demand for civil aircraft remains strong, with Boeing recovering orders while Airbus faces delivery challenges due to engine supply shortages [4][5] - The C919 aircraft has made significant progress in obtaining European airworthiness certification, which is crucial for accessing global markets [6] - The operational performance of the C919 has been validated through extensive market testing, with increasing flight hours and passenger numbers [7][8] - The delivery of C919 aircraft is expected to rise, with supply chain obstacles gradually diminishing [9] Summary by Sections Manufacturing and Development - The Changjiang engine's development is a key focus, with the 2026 work conference emphasizing the importance of commercial power and advanced materials [1] - The C919 has successfully completed various certification processes, including the TC and PC certifications for multiple engine models [3] Demand and Market Dynamics - Airbus has a backlog of 8,665 aircraft orders, with a projected delivery of approximately 820 aircraft by the end of 2025, while Boeing's commercial aircraft orders have shown signs of recovery [4] - Engine supply shortages are a critical bottleneck, causing many new aircraft to be grounded due to the lack of engines [5] Certification and Regulatory Progress - The C919 has received positive evaluations from the European Union Aviation Safety Agency (EASA), indicating its performance and safety [6] Operational Performance - The C919 has successfully carried over 4 million passengers by the end of 2025, demonstrating its operational reliability and efficiency [7] - Airlines are expanding C919 flight routes, reflecting confidence in the aircraft's performance [8] Delivery and Supply Chain - In 2025, approximately 15 C919 aircraft were delivered, showing an increase from the previous year, although still below initial expectations [9] - The resolution of supply chain issues, particularly regarding engine availability, is crucial for future production increases [9]

Investment Rating - The report maintains a recommendation for the commercial aviation engine industry, indicating a positive investment outlook [1]. Core Insights - The commercial aviation engine is referred to as the "crown jewel" of modern industry, with engines accounting for approximately 25% of the total value of commercial aircraft [4][20]. - The report emphasizes the significant growth potential of China's commercial aviation engine market, projecting a total market size exceeding 2.6 trillion yuan over the next 20 years, with an annualized scale of over 130 billion yuan [5][11]. - The commercial aviation engine supply chain is characterized by high barriers to entry, with a global oligopoly dominated by a few major manufacturers [5][6]. Summary by Sections Industry Overview - The report introduces the commercial aviation engine as a critical component of modern industrial capabilities, highlighting China's reliance on imported engines and the low marketization rate of domestic engines, which is less than 1% [4][21]. Commercial Aviation Engine Analysis - The structure of commercial aviation engines includes key components such as fans, compressors, combustion chambers, and turbines, with the hot section being the most critical and challenging to manufacture [26][33]. - The aftermarket services for engines can generate revenues up to four times the initial sale price, indicating a lucrative long-term profit potential [4][18]. Business Model Exploration - The primary manufacturers operate under a "super blade + long-term blade" profit model, leveraging significant discounts on initial sales to capture market share while securing long-term service contracts for profitability [5][6]. - Suppliers in the engine manufacturing chain are positioned as "hidden champions," benefiting from high entry barriers and the need for extensive certification processes [5][6]. Global Valuation Perspective - The average price-to-earnings (PE) ratio for major engine manufacturers is reported at 30.2 times, with leading companies like GE Aerospace at 42 times, indicating robust valuation metrics driven by order backlog and aftermarket growth [5][6]. - Core suppliers exhibit an even higher average PE of 68.5 times, reflecting their scarcity and stable demand characteristics [5][6]. China's Commercial Aviation Engine Market - The report highlights the Longjiang series of engines as a key initiative to reduce reliance on foreign technology and enhance domestic capabilities [5][11]. - The projected growth of the Chinese aviation market is supported by forecasts indicating a compound annual growth rate (CAGR) of 4.4% from 2024 to 2044, with expectations of 10,175 aircraft by 2044 [5][11]. Investment Recommendations - The report suggests focusing on three key areas within the domestic aviation engine supply chain: core component suppliers, high-temperature alloy manufacturers, and raw material suppliers [5][11].

Core Viewpoint - The company emphasizes that the Changjiang series engines are developed to meet the international standards of the fifth generation of civil aviation engines, representing advanced international levels in civil aviation engine technology [1] Group 1: Company Initiatives - The company has designated the development of the Changjiang engine as a key project for the "14th Five-Year Plan" [1] - Various subsidiaries are enhancing communication with China Aviation Engine Corporation to ensure effective collaboration and responsibility at all levels [1] - The company is focusing its resources on the timely arrangement of product trials and testing to ensure the completion of the development tasks [1]

Group 1 - The company,航发动力, is responsible for the manufacturing of certain units and components of the Changjiang series engines [1] - The company is currently progressing with the certification work according to the project plan set by the main contractor [1]

Summary of Conference Call for Yingliu Technology Industry Overview - The demand for gas turbines, optical modules, and PCBs is driven by large-scale investments in overseas data centers, positively impacting related US stock sectors [2][4] - The domestic military aviation engine sector is expected to see growth in new model deliveries despite 2025 being a small year for military products [2][6] - The domestic civil aviation engine market exceeds 100 billion RMB, currently reliant on imports, with domestic engines like the Changjiang series maturing [2][6][7] - The global market for civil aviation engines is highly concentrated, dominated by GE Aviation, Pratt & Whitney, and Rolls-Royce, with high demand but limited delivery capacity [2][7] Company Insights - Yingliu Technology has diversified its operations across military engines, gas turbines, oil and gas, mining, and nuclear power, establishing a platform development model [3][9] - The company’s order backlog increased from 150-200 million RMB at the end of Q3 last year to 1.2 billion RMB by the end of Q1 this year, indicating strong demand [3][9] - Recent long-term contracts with Siemens and other overseas clients extend production schedules to 2028-2029, expected to significantly boost future performance [3][10] Financial Performance - The company has maintained high R&D investment levels since 2017, averaging 300-400 million RMB annually, with capital expenditures rapidly increasing to 4.5 billion RMB [3][11] - The nuclear power business has shown rapid growth, with expectations of significant order releases in the next two to three years, maintaining a growth rate of around 20% [3][12][14] Future Prospects - The company is entering a harvest period, with a strong order book and expected profitability improvements in Q3 [3][13] - The low-altitude sector is being fully developed, with large orders signed in the first half of the year, anticipated to turn from losses to profits in the coming years [3][15] - The nuclear fusion business is also being explored, with collaborations for materials and equipment development, providing additional growth potential [3][14] Key Contracts and Collaborations - Significant contracts signed with major players like Siemens and GEV reflect the increasing demand for gas turbines and the need for domestic companies to support main engine manufacturers [3][8][10] Conclusion - Yingliu Technology is well-positioned for growth with a diversified portfolio, strong order backlog, and strategic investments in R&D and capital expenditures, indicating a positive outlook for future performance across various sectors [3][13][15]

Investment Rating - The industry investment rating is maintained as "Positive" [4] Core Viewpoints - The appointment of Zhang Yujin as the chairman of AVIC Engine Group indicates a potential return to high growth for the engine sector, with a broad market outlook [3][7] - The core technologies in the aviation engine industry are maturing, and the pressure on profitability from high investment in model development is expected to ease [7] - The maintenance, commercial aviation, and gas turbine sectors are opening up broader development opportunities for the aviation engine segment [7] Summary by Relevant Sections Industry Overview - The aviation engine industry has made significant progress over the past five years, achieving independence from imported engines for military applications and actively participating in the development of domestic commercial engines [7] Market Dynamics - The demand for weaponry and equipment is expected to expand due to ongoing international tensions, which will benefit the military trade market [6] Investment Recommendations - The report suggests focusing on specific segments within the aviation engine industry, including maintenance, commercial aviation, and gas turbines, as they present substantial growth potential [3][7] - Listed companies under AVIC Group include AVIC Power (600893), AVIC Control (000738), AVIC Technology (600391), and AVIC Materials (688563) [7]