Tracking of Hong Kong concept stocks | The low-altitude economy is once again welcoming positive catalysts, and the industry may accelerate the arrival of a turning point in development (with concept stocks attached)

On December 23, the General Office of the CPC Central Committee and the General Office of the State Council issued the "Opinions on Accelerating the Construction of a Unified and Open Transport Market." The "Opinions" propose to continue promoting air traffic control system reform, deepen low-altitude airspace management reform, and develop general aviation and low-altitude economy. Minsheng Securities stated that currently local cities are introducing low-altitude economic development plans, competing for a trillion-yuan market. At the same time, reforms in low-altitude airspace and the construction of new low-altitude infrastructure are gradually starting, and the industry may accelerate towards a turning point in development. Focus on the low-altitude aircraft industry chain and low-altitude new infrastructure. Ma Jian, Secretary-General of the China Urban Air Economy Research Center, stated that currently various regions are very enthusiastic about developing low-altitude economies, but the management of low-altitude airspace is actually more complex than that of mid-to-high altitude. Local governments should first have an awareness of strengthening the capacity for low-altitude airspace management, and in terms of personnel, establishment, and financial investment, they should strengthen construction based on the existing functional system. Only by establishing a safe daily low-altitude management system can the future low-altitude economy truly take root in various regions. Luo Jun, Executive Director of the China Low Altitude Economy Alliance, believes that 2025 will be the year when the low-altitude economy truly takes off. He stated that airspace management and route opening are the most important aspects of the low-altitude economy. In the context of the low-altitude economy, decentralizing power below a kilometer is conducive to the substantial advancement of the low-altitude economy and the normalization of low-altitude aircraft flights, enabling instant applications and forming a unique low-altitude economic airspace management model in China. Since the beginning of this year, with the increasing popularity of the low-altitude economy, many companies have disclosed their latest developments in the low-altitude economy sector. Among them, in the low-altitude economy sector, ZTE Corporation has made several breakthroughs. ZTE Corporation launched the industry's first large-angle self-propelled model capable of supporting a 65 large angle, achieving communication and perception capabilities at a height of 600 meters. In addition, ZTE Corporation has long been committed to the standard advancement, technical research and development, and ecological construction of perception-based intelligent technology. As of now, ZTE Corporation has jointly completed more than 80 low-altitude sensing pilot projects with operators and third-party partners in 25 provinces and cities, covering various application scenarios such as logistics distribution and key area low-altitude safety. In addition, the leading domestic helicopter air navigation operation, Citic Offshore Helicopter, disclosed in its 2024 interim report that the company participated in the formulation of the "Electric Vertical Take-Off and Landing Aircraft (eVTOL) Take-Off and Landing Site Technical Requirements" and will also participate in the construction of a take-off point centered around the Shenzhen Prince Bay Cruise Port, along with the construction of the first digital tower in China, actively deploying low-altitude economic businesses to create the second growth curve. Avic Xi'An Aircraft Industry Group previously stated on an interactive platform that as one of the strategic emerging industries, the low-altitude economy, the company will combine national and local government overall arrangements to organize and plan the development and capacity-building of the low-altitude economy, actively undertake relevant tasks related to low-altitude flight products. Huaxi believes that with the continuous promotion of policies and other factors, the industrialization process of the low-altitude economy is expected to accelerate, and a trillion-level industry scale can be expected. eVTOL, as an important carrier of the low-altitude economy, has multiple advantages and the commercialization process is expected to continue to advance. In terms of the industry chain, the cost of the three-electric systems (batteries, motors, controllers) is relatively high, and with the driving force of the broad market scale of eVTOL, the upstream market of the three-electric systems in the industry chain is expected to flourish. In addition, the field of electric aviation will place higher demands on related components such as the three-electric systems, and currently, some manufacturers have made early layouts in the field of electric aviation for batteries, motors, controllers, etc., and are expected to benefit from industry demand development and gain a first-mover advantage. Related concept stocks: AVICHINA (02357): The only flagship company of aviation high-tech military and civilian general products in the Hong Kong capital market. The company relies on the Aviation Industry Group, with the state-owned Assets Supervision and Administration Commission as the controlling shareholder, and important subsidiaries including AVICOPTER PLC, Jiangxi Hongdu Aviation Industry, AVIC Airborne Systems, AVIC Jonhon Optronic Technology, etc. In 2022 to 2023, the company continues to promote major asset restructuring, with the subsidiary AVIC Electronics merging through stock absorption with AVIC Mechanical and Electrical; the subsidiary AVICOPTER PLC is planning to acquire 100% equity of HAIFEI and CHANGFEI. ZTE Corporation (00763): ZTE Corporation has long been committed to the standard advancement, technical research and development, and ecological construction of perception-based intelligent technology. As of now, ZTE Corporation has jointly completed more than 80 low-altitude sensing pilot projects with operators and third-party partners in 25 provinces and cities, covering various application scenarios such as logistics distribution and key area low-altitude safety. XPENG-W (09868): On January 10, at the 2024 CES exhibition, Xiaopeng Huitian's Co-Founder and Vice President Wang Tan announced that the company's split-type flying car "Land Carrier" will start booking in the fourth quarter of this year and plans to start mass production and delivery in the fourth quarter of next year.