Maintain a "buy" rating on CIRRUS (02507) Western: Pay attention to the release of follow-up production capacity orders

Western released a research report stating that the long-term industry competitive landscape is stable, CIRRUS (02507) brand and manufacturing advantages are obvious, and market share advantages are expected to be sustained. The report is optimistic about CIRRUS' long-term steady growth capabilities. At the same time, the company is gradually expanding production capacity and building service networks on the margin, with future delivery capabilities and product portfolio richness expected to improve. The company's performance is expected to accelerate, with projected net profits of $160 million, $190 million, and $240 million in 2025, 2026, and 2027 respectively, corresponding to PEs of 18.4, 15.3, and 12.4X. The report is optimistic about the continuous recovery of the company's valuation, maintaining a "buy" rating. Western's main points are as follows: Release of the visionJetG3 new product, continuous price increases, and upgrades in intelligence/comfort. On the evening of February 3rd, after a 5-year hiatus, the CIRRUS visionJet series received a major upgrade: 1) more consumer-oriented: avionics upgraded comprehensively, equipped with CPDLC system for electronic processing of flight communications, eliminating the need for manual input or radio calls to the control tower; touch screen route planning supported during takeoff and landing, flight database supports automatic updates; 2) more spacious rear cabin space and cabin texture; 3) performance: slight increases in maximum flight speed, payload, and altitude, and engine improved resistance to headwinds. Positive news on order acquisition continues, with delivery structures continuously improving alongside capacity expansion. CIRRUS' target customer base is high net worth individuals rather than professional pilots. The focus this time is on upgrading intelligence/safety performance and addressing minor issues in flight, which is more important for customer acquisition and market penetration. 1) From an order perspective, the previous Visionjet delivery cycle was long, but with continuous capacity expansion and the completion of new product polishing, delivery volume is expected to improve; 2) the price range of new machines is expected to continue to rise compared to old products; 3) from a financial perspective, as new orders are gradually obtained and delivered with better structures such as VisionJetG3 and SRG7+, the overall product structure will improve year-over-year, and higher-end products will also adapt to higher-end services, leading to an increase in profitability. Risk warning: US economic recession, shareholder selling risk, service growth slower than expected.