Core Insights - The successful maiden flight of the T1400 unmanned helicopter marks a significant achievement for Harbin United Aircraft Technology Co., a subsidiary of the United Aircraft Group, showcasing advancements in payload and endurance capabilities [1][3] - The T1400 helicopter can carry a maximum payload of 650 kilograms, enabling it to perform cross-regional material delivery and extensive inspection tasks, indicating its potential applications in agriculture, logistics, and emergency rescue [1][3] Industry Development - Heilongjiang Province is accelerating the development of its aviation industry, leveraging a strong industrial foundation to build a comprehensive aviation manufacturing supply chain and cultivate a skilled workforce in aircraft research and manufacturing [3][4] - The province's aviation industry cluster has been upgraded since the 14th Five-Year Plan, with the Harbin aviation cluster recognized as a national advanced manufacturing industry cluster, enhancing its role in the domestic large aircraft supply chain [3][4] - New breakthroughs in low-altitude economic equipment development are evident, with the emergence of new helicopter models and the establishment of a large unmanned helicopter industrial base, providing robust support for the development of Heilongjiang's low-altitude economy [3][4] Future Plans - In 2024, Heilongjiang will implement measures to promote the low-altitude economy, aiming to cultivate a substantial low-altitude economic scale by 2027, with a focus on innovative applications and a vibrant full industry chain [4][5] - The province plans to strengthen innovation-driven initiatives and deepen open cooperation during the 15th Five-Year Plan, aiming for accelerated growth in the low-altitude economic industry chain, including helicopters and drones [5]

Core Insights - The 7th China Tianjin International Helicopter Expo showcased significant advancements in the general aviation sector, particularly highlighting the capabilities of companies from the Zhengzhou National General Aviation Industry Comprehensive Demonstration Zone [2][3] - The event featured impressive flight demonstrations, including three self-rotating rotorcraft from Henan Sanhe Aviation Industry Co., which attracted considerable attention and praise from attendees [2] - The expo facilitated deep cooperation agreements with multiple emergency management units and agricultural service companies, resulting in a signed intention for 50 aircraft orders [3] Company Highlights - Henan Sanhe Aviation Industry Co. showcased its S750 dual-rotor unmanned aerial vehicle and the "Sun Eagle" self-rotating rotorcraft, filling a domestic gap in the relevant field and obtaining necessary certifications from the Civil Aviation Administration [2] - China Feilong General Aviation Co., recently relocated to Henan, presented a mature operational system covering medical rescue, low-altitude operations, and flight training, demonstrating its leadership in the industry [3] - Zhengzhou National General Aviation Industry Comprehensive Demonstration Zone is developing a complementary economic model combining transport and general aviation, with 59 low-altitude economy enterprises and a fleet exceeding 176 aircraft [3]

Core Viewpoint - The AC332 helicopter has successfully completed its first-ever autorotation landing test in a high-altitude environment, marking a significant milestone for domestic dual-engine helicopters in China [2][6]. Group 1: Test Flight Preparation - The project team has meticulously prepared for the autorotation landing test, conducting thorough simulations and emergency response plans to ensure safety during the high-altitude test [3]. - The team has established clear responsibilities and protocols for each member involved in the test, emphasizing the importance of preparedness in mitigating risks [3]. Group 2: Phased Testing Approach - The testing process involved multiple phases, starting with the expansion of rotor speed parameters in a high-altitude environment, which helped build initial confidence in the helicopter's performance [4]. - Subsequent phases focused on identifying stable autorotation speeds and appropriate landing altitudes, leading to a more refined understanding of the helicopter's capabilities [4][5]. Group 3: Final Test Execution - On the day of the final test, all personnel were on high alert, with emergency teams ready to respond, ensuring that the helicopter was in optimal condition for the test [6]. - The helicopter successfully performed the autorotation landing after simulating an engine failure, demonstrating its reliability and the effectiveness of the project team's preparations [6]. Group 4: Future Implications - The successful completion of the autorotation landing test positions the AC332 as a leading product in the domestic civil helicopter market, with potential applications in emergency rescue and other critical operations [6].

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [3] Core Insights - The new forms of warfare are driving demand for advanced weaponry, characterized by "intelligent, systematic, and informational" capabilities, which are becoming critical for major power strategic competition [2][25] - Global military spending is projected to reach $2.718 trillion in 2024, marking a 9.4% year-on-year increase, the highest growth since the Cold War, and has been rising for ten consecutive years, providing a solid material foundation for the military industry [2][26][27] - The report highlights the increasing importance of low-cost military equipment, as demonstrated in the Russia-Ukraine conflict, prompting nations to focus on cost-effectiveness in military procurement [28][29] Summary by Sections New Warfare Forms Create New Demands - Recent international conflicts have highlighted the need for new types of weaponry, with a focus on unmanned systems, information warfare, and electronic warfare [2][25] - The military industry is experiencing a transformation driven by the evolving nature of warfare, leading to new demands and trade systems [2][3] Global Military Spending Trends - Military spending is expected to grow significantly, with the top five spenders being the USA, China, Russia, Germany, and India [26][27] - The report notes that military spending is a primary source of funding for the military industry, particularly for equipment expenses [27] Cost-Effectiveness in Military Procurement - The report emphasizes the need for low-cost solutions in military equipment, as seen in the effectiveness of low-cost drones during high-intensity conflicts [28][29] - It discusses the importance of considering total lifecycle costs, including procurement, maintenance, and operational costs, in military equipment development [29][30] Index Component Adjustments - Recent adjustments to major indices have resulted in several military industry stocks being added, which may lead to increased market attention and potential capital inflows [12] Investment Recommendations - The report suggests focusing on sectors such as unmanned equipment, military intelligence, satellite internet, and electronic countermeasures for investment opportunities [15][16] - Specific companies and sectors within the military equipment supply chain, such as fighter jets, drones, and missile systems, are highlighted as potential investment targets [15][16]