Investment Rating - The industry investment rating is "Recommended" (maintained) [1][3]. Core Insights - The report addresses key issues regarding the development of commercial aircraft projects, particularly focusing on the break-even point [11][14]. - It reviews the development history of Boeing and Airbus, providing insights that may inform the development of China's large aircraft industry [17][30]. - The report emphasizes the strategic importance of domestic large aircraft and associated systems, suggesting investment opportunities in these areas [37]. Summary by Sections 1. Key Issues in Commercial Aircraft Development - The lifecycle costs of commercial aircraft include design, manufacturing, operational, and disposal costs [11]. - The break-even point is crucial for evaluating the financial viability of aircraft projects, with historical data indicating that many projects take over ten years to reach this point [14][15]. 2. Review of Boeing's Development - Boeing's evolution reflects the growth path of the high-tech aviation industry, with significant shifts in supply chain management over the decades [17]. - The company experienced a peak revenue of $101.1 billion and a net profit of $10.5 billion in 2018, but faced challenges in subsequent years due to the B737 MAX grounding [20]. - By 2025, Boeing's net profit turned positive again, driven by a recovery in commercial aircraft deliveries [20]. 3. Review of Airbus's Development - Airbus became a significant player in the commercial aircraft market, surpassing Boeing in deliveries for the first time in 2003 [30]. - The company's revenue structure shows a strong reliance on commercial aircraft, which accounted for 72% of its income in 2024 [35]. 4. Industry Rating and Investment Strategy - The report maintains a "Recommended" rating for the industry, highlighting the ongoing upward demand cycle in the military industry [37]. - Suggested areas for investment include materials and structural manufacturing, engine systems, onboard systems, and total assembly units [41].