Today, the low-altitude economy sector is showing active performance, with many individual stocks rising and falling.

Zhonglun New Materials rose and stopped by 20CM; Xingtu New Materials and Aerospace Hongtu rose by more than 11%; Sinochem Geotechnical, Precision Technology, Starnet Yuda, Shandong Mining Machinery, and China Satellite rose more than 9%; and Zongheng Communications, Dongfangtong, and Laisheng Information rose more than 6%.

0.1 million EVTOL will be there by 2030

Get into a family or become an air taxi

Recently, the low-altitude economy has ushered in a series of major news, and the development of the industry has further accelerated.

Today, the China Low Altitude Economic Union released the “Low Altitude Economic Development Trend Report”. The report indicates that the price of eVTOL is expected to gradually decrease. By 2030, 0.1 million cars may enter households or become air taxis.

1. Drones will be everywhere, becoming the main tools for logistics and express delivery, agriculture, forestry and plant protection, emergency rescue, urban management, electricity inspection, route inspection, and tourism;
2. With the improvement and maturity of new technologies such as artificial intelligence, human-robot interaction, and road network clouds, aerial vehicles will also fully popularize unmanned technology;
3. In about two or three years, air traffic networks and ground flight service facilities in major cities in China will be basically completed, and eVTOLs will also be commercialized in large quantities. The market price of eVTOLs will also gradually decrease from 10 million. By 2030, four- and five-seat eVTOLs are expected to remain in the price range of 23 million, and 0.1 million eVTOLs may enter households or become air taxis.

The report also pointed out that in a few years, competition in the low-altitude aircraft hardware industry will be very cruel, and product iteration will accelerate.

At present, the number of drone companies in China has exceeded 10,000, and there are more than 2,000 large-scale drone companies, and more than half of the drone companies will be eliminated from the competition.
At the same time, there are more than 100 domestic companies that have entered or are entering the eVTOL field, and there are more than 1,000 global eVTOL companies, but there are less than 10 eVTOL companies with a certain foundation and strength.

At the same time, the “Learning Times” published an article stating that for the low-altitude economy, which is in the early stages of development, there is an urgent need for “patient capital” help and care to avoid the “shortsightedness” of capital and create a sustainable and healthy investment environment.

Earlier, on November 18, Sun Weiguo, director of the China Air Transport Association's general aviation business department, revealed that the Central Air Traffic Control Commission will soon launch eVTOL pilot projects in six cities to authorize airspace below 600 meters to some local governments. The first batch of cities was initially identified as Hefei, Hangzhou, Shenzhen, Suzhou, Chengdu, and Chongqing.

Recently, the country's first county-level low-altitude economic franchise transfer was officially launched.

On November 26, the official website of the Jinan Public Resources Exchange Center published the “Pingyin County Low Altitude Economic Franchise Project Bidding Notice”.

According to the tender information, the winning bidder was Shandong Jinyu General Aviation Co., Ltd., a wholly-owned enterprise of the local finance bureau. The project was to sell the 30-year franchise for the low-altitude economy in Pingyin County. The franchisee was responsible for the operation and maintenance of the low-altitude economy during the franchise period and provided services such as flight license driving training. The contract execution period was 30 years, and the winning bid amount was 0.924 billion yuan.

Trillion market size

This year is known as China's “First Year of Low-Altitude Economy.”

In March, the low-altitude economy was included in the government work report as a “new growth engine” and was defined as one of the strategic emerging industries.

Subsequently, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration jointly issued the “Implementation Plan for Innovative Application of General Aviation Equipment (2024-2030)” at the end of March, which proposed that by 2030, the low-altitude economy would reach a trillion-level market size, and formulated five key tasks and 20 specific work arrangements.

Driven by the national level, various parts of the country have issued documents supporting low-altitude economic policies to attract enterprises and capital to enter flying cars, eVTOLs, etc.

According to data from the Civil Aviation Administration of China, the market size of China's low-altitude economy is expected to reach 1.5 trillion yuan by 2025, and is expected to reach 3.5 trillion yuan by 2035.

In terms of investment, Open Source Securities believes that the low-altitude economy has already ushered in vertical implementation from macro (national-level industrial planning, airspace management) to mid-level (local subsidies in various regions) to micro (infrastructure tenders, application scenario construction). It is recommended to pay attention to subsequent sector conditions.

1) Low-altitude manufacturing: Wanfeng Aowei, Zongshen Power, Wolong Electric Drive, Green Energy Huacheng, Zijiang Enterprise, Lanhai Huateng, etc.;
2) Low-altitude infrastructure: Rice Information, Shenzhen-City Transit, Zhongke Star Map, Suzhou Jiaotong Technology, Huasheng Group, etc.;
3) Low-altitude operation: CITIC Haizhi, Western Tourism, Lingnan Co., Ltd.