According to Zhito Finance APP, on December 23, the General Office of the CPC Central Committee and the General Office of the State Council issued "Opinions on Accelerating the Construction of a Unified and Open Transportation Market". The opinion proposed to continuously promote air traffic control system reform, deepen low-altitude airspace management reform, and develop General Aviation and low-altitude economy. Minsheng Securities stated that local cities are currently competing to introduce low-altitude economic development plans to seize the trillion market, while the reform of low-altitude airspace and the construction of new low-altitude infrastructure are also gradually starting, and the Industry is expected to accelerate towards a developmental turning point. Focus on the low-altitude aircraft Industry Chain and new low-altitude infrastructure as two main lines.

Ma Jian, Secretary-General of the China Urban Airport Economic Research Center, stated that there is currently great enthusiasm for developing the low-altitude economy across various regions, but the air traffic control for low-altitude is actually more complex than that for medium and high altitudes. Local governments should first have an awareness of strengthening low-altitude airspace management capabilities, and in terms of personnel, organization, and funding input, should enhance construction based on the existing functional system. Only by establishing a safe routine low-altitude management system can the low-altitude economy truly take off in various regions in the future.

Luo Jun, Executive Chairman of the China Low-altitude Economy Alliance, believes that 2025 will be the year when the low-altitude economy fully begins. He stated that airspace management and route opening are the most important aspects of the low-altitude economy. In the context of the low-altitude economy, decentralizing the rights to airspace below one kilometer is conducive to substantive progress in the low-altitude economy and also facilitates the normalization of low-altitude aircraft flights, allowing for immediate applications, thereby forming a unique low-altitude economic airspace management model in China.

Since the beginning of this year, as the enthusiasm for the low-altitude economy has risen, many companies have disclosed their latest progress in the low-altitude economy field.

Among them, in the low-altitude economy field,$ZTE (00763.HK)$numerous breakthroughs have been achieved.$ZTE Corporation (000063.SZ)$The industry-first self-collecting large-angle model can support a 65° large angle, achieving communication and perception capabilities at a height of 600 meters. In addition, ZTE has long been committed to the standard advancement, technology research and development, and ecosystem construction of integrated communication and sensing intelligence technology. As of now, ZTE has cooperated with operators and third-party partners to complete over 80 low-altitude sensing pilot projects in 25 provinces and cities, covering various application scenarios such as logistics distribution and low-altitude safety in key areas.

Additionally, the domestic helicopter General Aviation operation leader.$Citic Offshore Helicopter (000099.SZ)$The company disclosed in the 2024 interim report that it participated in the formulation of the "Technical Requirements for Takeoff and Landing Sites of Electric Vertical Takeoff and Landing Aircraft (eVTOL)" and will also participate in the construction of takeoff and landing points centered around Shenzhen Prince Bay Cruise Port, supporting the construction of the first digital tower in the country and actively laying out low-altitude economic business to create a second growth curve.

$Avic Xi’An Aircraft Industry Group (000768.SZ)$Previously, it also stated on the interactive platform that as one of the strategic emerging industries, the low-altitude economy will be organized and planned in conjunction with the overall deployment of national and local governments, actively undertaking related tasks for the development and capacity building of the low-altitude economy.

Huaxi Securities believes that with the continuous promotion of policies and other factors, the industrialization process of the low-altitude economy is expected to accelerate, with a trillion-level industry scale anticipated. As an important carrier of the low-altitude economy, eVTOL possesses multiple advantages, and the commercialization process is expected to continue advancing. In terms of the industry chain, the cost proportion of the three-electric system (Battery, Electric Machine, Electronic Control) is relatively high, and driven by the vast market scale of eVTOL, the upstream market of the three-electric system in the industry chain is expected to flourish. Additionally, the electric aviation sector will place higher demands on components such as the three-electric system. Some manufacturers are already making preliminary layouts in the fields of batteries, electric machines, and electronic controls for electric aviation and are expected to benefit from industry demand development with a first-mover advantage in the future.

Related concept stocks:

$AVICHINA (02357.HK)$The only flagship company in Hong Kong Capital Markets for high-tech military and civilian General Aviation products. The company is backed by Industrial Conglomerates, under the control of the State-owned Assets Supervision and Administration Commission.$AVICOPTER PLC (600038.SH)$、$Jiangxi Hongdu Aviation Industry (600316.SH)$、$AVIC Airborne Systems (600372.SH)$、$Jonhon Optronic Technology (002179.SZ)$Important subsidiaries. From 2022 to 2023, the company continued to promote significant asset restructuring, with subsidiary AVIC Electron merging with AVIC Electromechanical through a stock swap; subsidiary AVICOPTER PLC plans to acquire 100% equity of Hafei and Changfei.

ZTE (00763): ZTE is committed to promoting the standardization, technological research and development, and ecological construction of integrated sensing and computing technology. So far, ZTE has collaborated with operators and third-party partners to complete over 80 low-altitude sensing pilot projects in 25 provinces and municipalities, covering various application scenarios including logistics distribution and low-altitude safety in key areas.

$XPENG-W (09868.HK)$On January 10, at the 2024 CES exhibition, Xiaopeng Huitian co-founder and vice president Wang Tan announced that the company’s split-type flying car 'Land Carrier' will begin accepting reservations in the fourth quarter of this year and plans to start mass production and delivery in the fourth quarter of next year.