Core Viewpoint - The 7th China Tianjin International Helicopter Expo showcases the achievements of China's helicopter industry, emphasizing innovation, modernization, and international cooperation in the aviation sector [1][8]. Group 1: Exhibition Highlights - The Aviation Industry Corporation of China (AVIC) presented over 70 self-developed helicopter products, demonstrating the full industrial chain development of helicopters [1]. - The main exhibition area covered nearly 2,600 square meters, focusing on the helicopter equipment development and the latest advancements in the low-altitude economy [3]. - The exhibition featured various units including "system operations," "emergency rescue," "technological innovation," "system support," and "comprehensive services," showcasing advanced design and manufacturing capabilities [3]. Group 2: Low-altitude Economy Development - The expo highlighted the growing interest in electric vertical takeoff and landing (eVTOL) aircraft, with new products like AR-E40, AR-E300, and AR-E300A being showcased [5]. - AR-E800 has entered the research and test flight phase, with a confirmed order of 20 units signed with Jingdezhen High-tech Zone and 140 units in intention orders for various applications [5]. - The low-altitude economy pavilion spanned 5,000 square meters, featuring models of various aircraft including AG600 and AC series helicopters, aimed at expanding the low-altitude economic industry [6]. Group 3: Flight Performances and Collaborations - The flight performances included the debut of the Z-20T helicopter, which attracted significant attention, alongside the AG600 aircraft participating for the first time [8]. - AVIC announced the launch of AR-600 and AR-2000 unmanned helicopters, achieving substantial results in signed cooperation agreements, including 193 aircraft contracts on the opening day [8]. - The expo also hosted various themed activities to enhance industry communication and collaboration, promoting the vision of helicopters improving modern life [8].

Core Points - The 7th China Tianjin International Helicopter Expo opened on October 16, lasting for four days, featuring a new low-altitude economy display area and showcasing multiple military and civilian helicopters and low-altitude flying vehicles [1][3] Industry Overview - The expo is co-hosted by the Aviation Industry Corporation of China and the People's Liberation Army Ground Force, themed "Open Innovation, Integrated Development, Cultivating New Quality Productivity," attracting nearly 400 enterprises from over 30 countries and regions, including major global helicopter manufacturers like Airbus, Russian Helicopters, and Bell [3][6] - The event aims to promote global helicopter industry cooperation and enhance China's aviation industry's core competitiveness by showcasing new technologies, products, and achievements in the helicopter and drone sectors [3][6] Company Highlights - The Aviation Industry Corporation of China presented a series of helicopter products under the theme "Soaring Together, Sharing the Future," focusing on user needs and professional application scenarios, with exhibits organized into five units: "System Operations," "Emergency Rescue," "Technological Innovation," "System Support," and "Comprehensive Services" [5][6] - The expo featured real aircraft such as the Z-10ME, AC311A, and AC312E, as well as models and immersive virtual reality demonstrations of advanced design, manufacturing, and integrated service capabilities [6][7] - New products like the AR-E40, AR-E300, and AR-E300A eVTOLs were showcased, with the AR-E800 entering the research and test flight phase and securing orders for 160 units [6][7] Event Details - The total exhibition area is approximately 160,000 square meters, with nearly 250 booths across 10 categories, and the event will include high-level forums, new product launches, project signings, business negotiations, and cultural events [7]

Core Viewpoint - The 7th China Helicopter Expo will be held from October 16 to 19 in Tianjin, showcasing the "Purple Fire" future aircraft concept for the first time by AVIC and AVIC Helicopter [1] Group 1: Event Highlights - The expo will feature a comprehensive display of helicopter products, emphasizing the strength of the industry and showcasing innovations in both helicopter and low-altitude economy sectors [1] - The main exhibition will focus on five modules: "System Warfare," "Emergency Rescue," "Scientific Research Innovation," "System Support," and "Comprehensive Services," highlighting advanced design, manufacturing, and integrated service capabilities [1] - A total of 52 aircraft will be exhibited, including 38 helicopters, with notable models such as the Army Z-10, Z-19, Z-20/20T (first flight display of Z-20 assault helicopter), Z-8L, and various drones [1] Group 2: Business Development - The company is enhancing its helicopter business while expanding into the civil aviation sector and pursuing breakthroughs in military trade [2] - In the first half of the year, the company made steady progress in product and technology development, with the 13-ton AC313A helicopter completing modifications and resuming flight in June [2] - The company has formed a market development team to explore the civil aviation market and low-altitude economy, resulting in new orders for three AC311A helicopters and collaboration on eleven AC311A procurement evaluations [2] Group 3: Military Trade and Financial Performance - Pakistan's military has integrated the Chinese-made Z-10ME armed helicopter into its aviation forces, marking a significant step in defense modernization [3] - The company reported stable revenue growth in the first half of 2025, achieving operating income of 10.241 billion yuan (+25.28%) and a net profit of 282 million yuan (-5.12%) [3] - The company's gross profit margin for the first half of 2025 was 6.28% (-6.82 percentage points), with a net profit margin of 2.31% (-1.27 percentage points) [4] Group 4: Profitability Forecast - The company is positioned as a leading supplier of helicopters and components in China, capitalizing on military trade and low-altitude economic opportunities [4] - Projected net profits for 2025-2027 are 681 million yuan, 828 million yuan, and 987 million yuan, with corresponding EPS of 0.83, 1.01, and 1.20 yuan, and PE ratios of 45.74, 37.64, and 31.56 [4]

Financial Performance - In the first half of 2025, the company achieved operating revenue of 10.241 billion (up 25.28% year-on-year, completing 33.86% of the annual budget) and a net profit attributable to shareholders of 282 million (down 5.12% year-on-year, completing 46.69% of the annual budget) [1] - For Q2, the company reported revenue of 7.865 billion (up 63.80% year-on-year) and a net profit of 80.32 million (down 51.99% year-on-year) [1] - The overall gross margin decreased by 6.82 percentage points to 6.28% [1] Segment Performance - The Harbin division had total assets of 29.967 billion, generating revenue of 8.093 billion and a net profit of 339 million, with a net profit margin of 4.19% [1] - The Jingdezhen division had total assets of 18.701 billion, generating revenue of 2.072 billion and a net loss of 41.47 million, with a net profit margin of -2.00% [1] Expense Management - Selling expenses for the first half were 52 million (up 4.47% year-on-year), management expenses were 465 million (up 2.63% year-on-year), and financial expenses were -38.53 million (compared to -16.46 million in the same period last year) [1] - R&D expenses were 155 million (down 12.64% year-on-year) [1] - The overall expense ratio decreased by 2.02 percentage points to 4.67% [1] 2025 Financial Forecast - The company expects to achieve revenue of 30.249 billion (up 1.63% year-on-year) and a net profit of 604 million (up 8.66% year-on-year) in 2025, with a projected net profit margin of around 2% [2] Capital Raising and Project Development - The company plans to raise 2.968 billion through a private placement to enhance competitiveness in core business areas, focusing on new helicopter development, drone R&D, and aviation maintenance [2] - As of mid-2025, the progress of cumulative investment reached 12.33%, with the Harbin production capacity enhancement project progressing the fastest at 84% [2] Industry Development - The company is enhancing its low-altitude economy layout by advancing eVTOL R&D and applications [3] - Collaborations with universities and research institutions are established to tackle key technologies in the development of electric vertical takeoff and landing aircraft [3] - The company has received new orders for 3 AC311A helicopters and is progressing with the AC332 system testing to support diverse applications in emergency rescue and high-altitude services [3] Profit Forecast - The projected net profits for 2025, 2026, and 2027 are 612 million, 723 million, and 850 million respectively, with corresponding valuations of 54, 46, and 39 times [3]