Company Announces 2025 Quarterly Report: 1) In the first quarter, the company achieved revenue of 0.496 billion yuan, up 8.37% year on year, and achieved net profit to mother of 0.091 billion yuan, up 9.2% year on year, after deducting 0.091 billion yuan of non-net profit, up 9.6% year on year. The company's first quarter performance was the highest in history, second only to 0.108 billion yuan in the 24Q4 single quarter. Net profit not attributable to 24Q1-3 was 0.083, 0.049, and 0.061 billion, respectively. 2) Profit margin: The company's 25Q1 gross profit margin was 21.85%, an increase of 2.3 percentage points over the previous year. 24Q1-4 achieved gross profit margins of 19.6%, 21.6%, 23.3%, and 26.3%, respectively; 25Q1 net interest rate after deducting non-return mother was 18.4%; and 24Q1-4 net interest rates of 18.2%, 9.6%, 11.4%, and 16.2%, respectively.
The company continues to practice innovation in the field of general aviation: According to the company's public account report on April 16, the company's subsidiary Haizhi General Aviation officially received the human-specific “Double Tail Scorpion A” drone system produced by Tengdun Kechuang. This incident is an important practical innovation for the company in the field of low-altitude economy, and it is expected to become an important participant in the field of man-made weather effects.
We are concerned that the company's cooperation in the field of eVTOL is deepening: 1. According to Fengfei's public account report on April 30, CITIC Haizhi, CITIC Financial Leasing and Fengfei Airlines officially signed a strategic cooperation agreement, which includes CITIC Financial Leasing's intended purchase order for 100 large eVTOL aircraft (including the 2-ton cargo aircraft Kerry Gou and the 5-passenger aircraft Shengshilong). 2. We believe that tripartite cooperation has clear scenarios where it can be commercialized. In the April 20 Low Altitude Economy Weekly Report, we clearly proposed that the financial industry is developing in a low-altitude economy, and CITIC Financial Leasing provides another powerful example; while CITIC Haizhi is the most powerful general aviation operator in China, the company operates a helicopter fleet to provide personnel transportation services for CNOOC from land to offshore oil platforms, while Fengfei Cargo eVTOL Carriou (already obtained TC and PC) can accurately match aircraft capacity and service plans for passengers and cargo companies according to different oil field sizes, operating cycles, required material categories and personnel scheduling conditions. Service delivery is a useful complement ; The manned aircraft Shengshilong and the company have potential for future cooperation in the fields of low-altitude tourism, transportation, etc. (CITIC Haizhi launched a commercial Shenzhen-Zhuhai helicopter flight in 2024, and in February 2024, Fengfeng Shengshilong eVTOL showed the first demonstration flight of the Shenzhen-Zhuhai cross-bay route).
In its 2024 annual report, the company published “Jointly Moving Forward, Pursuing a New Era of Low Altitude — A Letter from Chairman CITIC Haizhi to All Shareholders”. Looking forward to the future: 1) Build a leading global low-altitude economy enterprise, participate deeply in international standard setting, actively participate in pilot low-altitude airspace management reform, and serve the “Belt and Road” low-altitude corridor construction. 2) Make full use of our rich comprehensive service experience to expand new scenarios and new business formats in the low-altitude economy.
3) While focusing on the main business, we will also continue to implement the CITIC Group Industrial “Starlink” project, launch a star-building campaign, and create a second growth curve.
We continue to be optimistic about the company's triple benefit logic under the low-altitude economic wave. First, develop the C-side consumer market, including low-altitude tours, short-distance transportation, etc.; second, as the most powerful and experienced company in the general aviation market operation side, we expect the company may be expected to participate in the construction of new low-altitude operation network standards; third, emerging strategies of major central enterprises*: group empowerment and potential opportunities for industrial chain extension.
Investment advice: 1) Profit forecast: Based on the decline in crude oil prices in 2025, we slightly adjusted our 25-26 profit forecast to 0.36 and 0.4 billion (the original forecast was 0.35 and 0.39 billion) and maintain the 2027 0.44 billion forecast. The corresponding EPS was 0.46, 0.52, and 0.56 yuan, respectively, and the corresponding PE was 48, 43, and 39 times, respectively. 2) Investment advice: We continue to be optimistic that 2025 will enter the year of implementation of the low-altitude economy, and emphasize the “recommended” rating.
Risk warning: flight safety risks, high concentration of major customers, large fluctuations in aviation fuel.
