Investment Rating - The report maintains an "Increase" rating for the industry, indicating a positive outlook for the sector in the next six months [1]. Core Insights - The report highlights the inclusion of companies such as JD Industrial, Leshush, and Xirui in the Hong Kong Stock Connect list, while companies like Beijing Capital Airport and Fenbi were removed [4]. - JD Industrial is recognized as a leading provider of industrial supply chain technology and services in China, with a projected revenue of 23.95 billion yuan in 2025, reflecting a year-on-year growth of 17.4% [11]. - Leshush, a leading brand in Africa for sanitary products, is expected to generate revenue of $454 million and a net profit of $95 million in 2024, with a compound annual growth rate (CAGR) of 19% for revenue from 2022 to 2024 [9]. - Xirui, a pioneer in the global private aviation sector, anticipates delivering 731 aircraft in 2024, with projected revenue of $1.197 billion and a net profit of $121 million, showcasing a CAGR of 19.5% from 2020 to 2024 [10]. Summary by Sections Industry Overview - The report discusses the adjustment of the Hong Kong Stock Connect list, emphasizing the strategic inclusion of companies that are positioned for growth in emerging markets and sectors [4][9][10]. Company Performance - JD Industrial is positioned as the top player in China's MRO procurement service market, benefiting from the digitalization trend in industrial supply chains [11]. - Leshush's market share in Africa for baby diapers and sanitary napkins is 20.3% and 15.6%, respectively, indicating strong competitive positioning [9]. - Xirui's diverse revenue streams from aircraft sales, customization, and after-sales services enhance its market resilience and customer loyalty [10]. Market Trends - The report notes the significant growth potential in the industrial products circulation market in China, driven by the low digital penetration and increasing standardization of enterprise procurement [11]. - The expansion of the ultra-high-net-worth population globally is expected to structurally increase demand for private aviation services, benefiting companies like Xirui [10].

Group 1 - The stock price of the leading global private jet manufacturer, Cirrus, surged by 14.01% to close at HKD 48 per share, reaching a market capitalization of HKD 17.57 billion, despite the impending unlock date for its controlling shareholder's shares [2][3] - Cirrus is controlled by AVIC General Aviation, which holds an 84.97% stake, and the unlock date for the shares is set for July 11, 2025, allowing for a total release of approximately 310.96 million shares [3][4] - Historical cases indicate that stock unlocks do not necessarily lead to price declines, especially in favorable market conditions, and the recent price increase reflects investor confidence in Cirrus's future [5] Group 2 - Cirrus has shown impressive delivery performance, with annual deliveries increasing from 528 units in 2021 to 731 units in 2024, significantly outpacing industry averages [6] - The company reported a revenue increase of 12.1% to USD 1.197 billion and a net profit growth of 32.5% to USD 120.75 million for the year ending December 31, 2024 [7] - Cirrus's market share in the global private aviation sector reached 32.0% in 2023, with a strong customer base primarily in North America and Europe [6][7] Group 3 - The domestic low-altitude economy is experiencing growth due to new regulations and strategic plans, but Cirrus's current product offerings may not align with the local market's demand for cost-effective and practical aircraft [8] - The company faces competition from traditional rivals and emerging players, such as GA20 from Guanyi Aviation, which has received certification and plans to enter the European and American markets [8]