The company is backed by the 28th Research Institute of Electric Technology Group. It has strong scientific research capabilities, has been deeply involved in civilian command systems for many years, and has a leading market share in the industry. The low-altitude economy is booming, and the company actively lays out infrastructure construction for the low-altitude economy based on the advantages of civil aviation management. First coverage, giving a “Highly Recommended” investment rating.

Backed by the 28th Research Institute of Electronics Group, it has strong scientific research capabilities. The company was founded in 1988 and mainly provides overall solutions and a series of products centered on command and control technology for traffic management, urban road traffic management, and urban governance industries in civil aviation. The actual controller of the company is CLP Rice, which was incubated at the 28th Research Institute of China Electronics Technology Group Corporation. It is a key research institute in China engaged in the engineering development of command automation systems, the development of large-scale electronic information systems such as air traffic control systems, and the development and production of special equipment for various information systems at all levels. It is also the overall technical unit for military and civil aviation control systems in China.

Deeply involved in the field of civil aviation management for many years, our products and technology have broken international monopolies and led the market share of the industry. The company is guided by the civil aviation management network information system to strengthen key technological breakthroughs and achieve autonomy and control of core technology. Currently, the company's air traffic control automation system has 80% user coverage, 42% market share for air traffic control systems, and 64% market share for the main system, which is in an absolute leading position. In addition, the company is speeding up the development and verification of new airport products, and the “two wings fly together” development pattern for air traffic control and the airport is gradually improving. In the future, in the field of civil aviation management, the company will focus on the three directions of steady expansion of the air traffic control system market share, accelerated penetration of airport information technology construction, and development of the international market.

The company has great advantages in the low-altitude economy in terms of card position and technology accumulation, and is expected to create a new round of growth curve. At present, China strongly supports the development of the low-altitude economy at the policy level. It is estimated that the overall scale of the industry will exceed trillion dollars in '26. Among them, low-altitude infrastructure construction is the foundation for the development of the low-altitude economy, and it is expected to take the lead. We believe that low-altitude flight has high requirements for air traffic control systems, and that the entry threshold for the industry is high. Rice Information has been deeply involved in the field of civil aviation for many years and has accumulated rich experience and data. The industry can be extended to the field of low-altitude flight, which is expected to provide systematic solutions for various future application scenarios, from low-altitude airspace planning and low-altitude security to low-altitude services. Currently, the company is actively laying out low-altitude economic infrastructure construction, and projects have been launched on low-altitude air control platforms and low-altitude flight service simulation platforms.

First coverage, giving a “Highly Recommended” investment rating. We expect the company to achieve revenue of 2.039/2.578/3.296 billion yuan from 2024 to 2026, and achieve net profit of 0.163/0.212/0.272 billion yuan, corresponding to PE64.1/49.3/38.4X. This is the first coverage, giving it a “highly recommended” investment rating.

Risk warning: industry competition risk, risk of developing business mainly through a project-based model, risk of low-altitude economic development falling short of expectations, risk of shareholder holdings reduction.