On July 11th, Futu News reported that $CIRRUS (02507.HK)$Today, the dark market opened low, closed down 3.64% at HKD 26.5, with a turnover of HKD 7.5937 million and a total market value of HKD 9.695 billion. Each lot is 100 shares, excluding handling fees, and the amount per lot is HKD 100.
Market source: Futu Securities >
Investment highlights
Leading position in the industry: Cirrus Aircraft was established in Wisconsin, USA in 1984, mainly designing, producing, and selling single-engine piston and jet aircraft. Since its establishment, Cirrus has delivered over 9,500 SR2X series aircraft and over 500 Vision jets. According to data from Frost & Sullivan, Cirrus Aircraft is the largest private aircraft manufacturer in the global private aviation market, with a market share of 32% in the global private aviation market in 2023 based on delivered volume and 24.9% based on sales revenue.
Broad market prospects: According to the prospectus, from 2021 to 2023, Cirrus plans to deliver 528, 629, and 708 aircraft respectively, which is much higher than the average annual delivery volume of the company's peers. According to the General Aviation Manufacturers Association and Frost & Sullivan, the compound annual growth rate of general aviation aircraft deliveries in North America is expected to be 4.8% from 2023 to 2027. The compound annual growth rate in the Asia Pacific region, Latin America, and Europe is expected to be 8.8%, 5.1%, and 6.7%, respectively. Since its establishment, Cirrus has delivered more than 0.01 million aircraft, with the main consumer group in the North American market, and later will focus on expanding the market in the Asia Pacific and European regions.
Risk warning
International sanctions risk: As a Sino-US joint venture, Cirrus is susceptible to the development of Sino-US international relations. Although Cirrus has implemented internal control measures to minimize the risk of international sanctions, sanction laws and regulations are still evolving, and new individuals and entities are added to the list of sanctioned persons on a regular basis. In addition, new requirements or restrictions may take effect, which may strengthen the review of Cirrus's business or cause one or more of Cirrus's business activities to be deemed to be in violation of sanctions. Cirrus cannot guarantee that its future business will not be subject to sanction risks.
Long delivery cycle: Depending on the region and configuration, it usually takes Cirrus 18 to 24 months to deliver an aircraft from the time the customer places an order to the time it is delivered to the customer. The company's revenue is only confirmed after the customer accepts and delivers the aircraft, and the waiting process inevitably results in cancellations due to various factors. Therefore, the number of orders does not necessarily represent the final revenue. Any changes in the global economic situation and international political situation may pose risks to Cirrus's business operations.
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Editor/Jamie