Introduction to this report:
The Taicang drone test flight base project recently won by Huasheng Group covers low-altitude 5G intelligent networking capacity building, low-altitude service management platform, construction of supporting facilities, overall plan research and other services, etc., which spawned the low-altitude industry to land in Taicang.
Incidents:
As the lead unit of the consortium, it won the bid for the “Taicang Civil Drone Test Flight Base Construction and Service Project”.
Commentary:
Maintain the increase in holdings. Maintain the 2024-2026 EPS forecast of 1.16/1.25/1.35 yuan, an increase of 13/8/ 7%. Maintain the target price of 13.1 yuan, corresponding to 11.3 times PE in 2024.
The content of this project covers four major parts, including low-altitude 5G intelligent networking capacity building, low-altitude service management platform, construction of supporting facilities, overall plan research, and other services: (1) Low-altitude 5G intelligent networking capacity building includes 5G communication, navigation, surveillance, meteorology, and spectrum map surveying and mapping. (2) The low-altitude service management platform connects to drone operation data, airspace management data, low altitude intelligence data and collaborative management data at the test flight base to provide functions such as airspace digital planning, flight activity management, low-altitude operation monitoring, navigation intelligence and meteorological services, and user and drone real-name management to ensure compliance, safety and efficiency of the base operation. (3) The construction of supporting facilities includes command environments such as large surveillance screens, consoles, and seat workstations, as well as monitoring facilities such as drone autonomous airports, 5G cloud boxes, and high-definition surveillance cameras to provide basic support for subsequent daily management work. (4) Overall plan research and other services include overall plan research for civilian drone test flight sites, low-altitude airspace research for test flight bases, comprehensive application test site research for test flight bases, and preparation of test flight base application materials.
The project will target various application scenarios such as urban air traffic, intelligent drone inspection, and low-altitude logistics transportation, and spawn the low-altitude industry to land in Taicang. Through the construction of a specialized platform service system for “airspace assurance, low-altitude flight, industrial cultivation, comprehensive service” and low-altitude intelligent supporting facilities, we have vigorously promoted low-altitude airspace management reforms, spawned a number of low-altitude industries to land in Taicang, and build a “one-stop” comprehensive service guarantee base for low-altitude economic development in the Yangtze River Delta integrating test flight testing, airworthiness certification, and flight services.
HuaShi Group currently has more than 400 aviation professionals, and its business covers the entire chain of commercial development. Since 2015, various professional teams such as the Transportation Planning Institute's aviation team, the Beijing Civil Aviation Institute of China, and China Construction Aviation have been deployed. The business covers the entire chain of aviation and low-altitude planning and design, platform systems, construction management, operation services, and commercial development. Huashi Group has participated in the design consulting work of the Nanjing Civil Unmanned Aeronautics Test Zone, one of the first 13 bases in the country, and one of the top 3 airworthiness certification centers in the country, and undertook more than 100 low-altitude related businesses such as “Jiangsu Transportation Holdings Low Altitude (Drone) Integrated Service Management System Construction” and “Jiangxi Ganzhou Nankang District Drone Industrial Park Standard Plant and Supporting Infrastructure Design”. It has the “Civil Aviation Airport Safety and Operation Engineering Technology Research Center” approved by the Civil Aviation Administration of China, and undertook the “Civil Aviation Airport Safety and Operation Engineering Technology Research Center” approved by the Civil Aviation Administration of China. The preparation of the “Guidelines” is a pioneer in developing low-altitude business in China.
Risk warning: macroeconomic policies have been tightened beyond expectations, infrastructure investment has fallen short of expectations, etc.