Newsletter summary
Wande low-level economic index hit a new high20freespinsonregistrationnodepositAn increase of 37% in the past three months20freespinsonregistrationnodeposit.38%20freespinsonregistrationnodepositThe industrial fund has become the focus of development, and the market potential of electric vertical take-off and landing aircraft is great. Soochow Securities suggests paying attention to the investment opportunities of the relevant industrial chain.
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On May 9, the Wande low-level economic index (8841750) closed up 1.20freespinsonregistrationnodeposit.83%, reaching a record high of 10507.17 points. The index had risen 37.38 per cent in March.
[as for individual stocks, as many as 17 stocks have risen more than 10% this week]. The top three increases were Aviation New Technology, Situang Electronics and Shanggong Shenbei, with increases of 43.10%, 34.18% and 25.53%, respectively. The top three stocks that have risen in the past month are Andaville, Zongshen Power and Aviation Technology, up 71.51%, 49.94% and 49.52%, respectively.
Combing through the recent developments, it is found that "industrial funds" are gradually becoming the main force to promote the development of low-altitude economy.
Such as Tianyan check information, Anhui low-altitude economic industrial fund partnership (limited partnership) has been established, the amount of investment is as high as 1 billion yuan, and the executive partner is Anhui Traffic Control Capital Fund Management Co., Ltd. In addition, the official website of the Suzhou municipal government also disclosed that since the beginning of this year, Suzhou has signed 16 low-level economic industrial funds with a total size of more than 20 billion yuan. Liangping District has also set up a 1 billion yuan low-altitude economic industrial fund to support the development of the local low-altitude economy.
On the policy front, the March report on the work of the Government has clearly included the "low-altitude economy" in the focus of work in 2024. At the end of March, the Ministry of Industry and Information Technology and other four departments jointly issued the implementation Plan for the Innovation and Application of General Aviation equipment (2024-2030), which provided strong support for the cultivation of low-altitude economy.
In terms of the market, the commercialization of low-altitude manned scenes has also made a breakthrough. On April 30, Citic Haizhi opened a low-altitude short-haul transport route (Shenzhen-Zhuhai) in the Greater Bay area, reducing the original two-hour drive to 20 minutes, providing the public with new options for sightseeing, family travel and business travel. On the same day, Chongqing also opened the first helicopter low-altitude tour of the Yangtze River.
According to the research report of open source securities, according to data from research institutions under the Ministry of Industry and Information Technology, China's low-level economy has reached 506 billion yuan in 2023, an increase of 33.8 percent over the same period last year, and is expected to reach 1 trillion yuan by 2026. Among them, the market growth potential in the field of electric vertical take-off and landing aircraft (eVTOL) is particularly huge. The industrial scale in 2023 is 980 million yuan, an increase of 77.3 percent over the same period last year, and is expected to reach 9.5 billion yuan by 2026.
Soochow Securities pointed out in its research report that pre-infrastructure and aircraft manufacturing are the key directions of low-altitude economic investment. Investors are advised to pay attention to the policy-guided pre-infrastructure guarantees such as airport infrastructure, airspace management and flight intelligence. At the same time, the whole machine or parts suppliers of eVTOL industry chain also have potential investment opportunities, especially those aviation industry chain related companies with high technical barriers and low localization rate. Soochow Securities advises investors to focus on eVTOL manufacturers, drone manufacturers, helicopter manufacturers, infrastructure service providers, shipping operators and related companies in the field of transportation planning.