Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [58]. Core Insights - The low-altitude economy is gradually accumulating "quantitative changes" and is anticipated to wait for a "qualitative change" as the industry progresses and market performance improves [4][31]. - The recent International Low-altitude Economic Expo showcased significant support from both policy and industry, with 201 low-altitude aircraft displayed, including 155 drones and 500 eVTOL orders, reflecting strong market interest and potential growth [4][31]. - The report emphasizes the importance of low-altitude safety and the landing of cargo scenarios for drones, suggesting that if relevant policies are implemented, drones could transition from a supporting role in logistics to a leading market position [5][32]. Summary by Sections Market Review - The Wind Low-altitude Economic Index increased by 1.70% during the week of July 21-25, outperforming the Shanghai Composite Index, which fell by 2.76% [2][15]. - Key stocks that performed well include Jindun Co. (+16.98%), Wolong Electric Drive (+12.66%), and Huayi Technology (+11.71%), while stocks like Guanglian Aviation (-13.18%) and Changyuan Donggu (-5.07%) saw declines [3][17]. Industry Dynamics - The report highlights the establishment of a leadership group by the Civil Aviation Administration of China for general aviation and low-altitude economy, indicating a focus on practical measures such as airspace planning and low-altitude flight management [4][32]. - Recent policy developments include the implementation of the "2025 Small Drone (Revised) Order" and the "2025 Safety Emergency Equipment Industry Classification Guidance Directory," which aim to promote the development of the low-altitude economy [39][41]. Investment Strategy - The report suggests focusing on drone manufacturers such as Zongheng Co. and Green Energy Huichong, as well as leading companies in various segments like Wan Feng Aowei (complete machines) and Deep City Transportation (planning and design) [9][34]. - New directions for investment include low-altitude safety and inspection sectors, with recommended companies like Xinjingang and Guorui Technology [9][35].