According to the Zhitong Finance APP, Founder Securities released a Research Report stating that on December 27, the National Development and Reform Commission's Low Altitude Economy Development Department held a seminar to promote the construction of low-altitude infrastructure. The establishment of the Low Altitude Department at the National Development and Reform Commission signifies the establishment of top-level guidance, which can effectively resolve existing issues such as industry standardization, technological development direction, and coordination of management mechanisms, and collaboratively promote the acceleration of industry landing. Currently, multiple policies have clarified support for the low altitude economy from the perspectives of funding and planning, maintaining strong momentum for industry development. Looking ahead to 2025, some planning policies are about to be implemented and are expected to mark the year of transition from preliminary planning to industrial landing for the low-altitude economy.

The main viewpoints of Founder Securities are as follows:

The Low Altitude Department has been officially established to unify the guidance for the development of the low-altitude economy.

According to information from the National Development and Reform Commission's official website, the Low Altitude Economy Development Department is responsible for formulating and organizing the implementation of low-altitude economic development strategies and medium- to long-term development plans, proposing relevant policy recommendations, and coordinating major issues. Currently, the Low Altitude Department has conducted two seminars with ministries such as the Ministry of Natural Resources and the Ministry of Ecology and Environment, as well as with relevant central enterprises and experts in communication and navigation, to promote the construction of low-altitude infrastructure and the development of low-altitude intelligent networking systems, to understand typical application scenarios of low-altitude economic development in related fields, and engage in discussions on the orderly planning of low-altitude infrastructure and the construction of low-altitude intelligent networking systems.

Founder Securities believes that the establishment of the Low Altitude Department at the National Development and Reform Commission signifies the establishment of top-level guidance, which can effectively resolve existing issues such as industry standardization, technological development direction, and coordination of management mechanisms, and collaboratively promote the acceleration of industry landing.

Recently, multiple top-level policies support the development of the low-altitude economy in 2025, maintaining the momentum for industrial development.

On December 25, the General Office of the State Council published the "Opinions on Optimizing and Improving the Management Mechanism of Local Government Special Bonds," including low-altitude economy and other emerging industries into the areas where special bonds can be used as project capital. The upper limit ratio for using special bond projects as capital has been raised from 25% to 30%, providing ample funding support. On December 27, the National Industrial and Information Work Conference emphasized that by 2025, new and future industries should be cultivated and developed, constructing low-altitude information infrastructure according to local conditions. On the same day, the Ministry of Transportation stated that it would promote Transportation reform in 2025, accelerating the development of General Aviation and low-altitude economy. Currently, multiple policies have clarified support for the low-altitude economy for 2025 from the perspectives of funding, planning, etc., maintaining strong momentum for Industry development.

In 2025, the low-altitude economy will shift from planning to practical implementation, focusing on three main directions.

From a local perspective, as of now, over 50 cities have issued low-altitude economy development policies, more than 10 provinces/cities/regions have introduced subsidy policies, and nearly 20 local low-altitude industry funds have been officially established. Each province and city has set clear goals for infrastructure scale, route planning, application scenarios, and manufacturing construction, with implementation periods ranging from 25 to 30 years. In 2025, some planned policies are set to be implemented, which are expected to mark the beginning of the low-altitude economy transitioning from preliminary planning to industrial implementation. The experimental fields constructed in various locations will gradually come into use, and various details, standards (route planning, takeoff and landing points, and supporting facilities, air traffic management and peripheral systems) will gradually take shape, pushing the entire Industry into a large-scale development stage. Three key directions are suggested for attention:

Leading low-altitude infrastructure construction: Starting from September 2024, the bidding volume for low-altitude infrastructure has significantly increased in various regions, and the construction of low-altitude infrastructure is expected to officially start scaling in various areas. Corresponding Orders will be issued in large quantities next year, significantly improving the reports of relevant companies. Meanwhile, the air traffic control committee indicated that some local governments will be authorized for airspace below 600 meters, and low-altitude infrastructure symbols with local attributes will also benefit deeply.

Drone/eVTOL components: Currently, the air traffic control committee is about to launch eVTOL pilot projects in six cities, and the list of second batch pilot cities is also expected to be gradually released, likely driving an increase in eVTOL bookings. In addition to eVTOL, several special-purpose and cargo drones have been officially launched this year. As the Industry is currently in its initial stage, upstream component manufacturers will benefit first, with core components such as composites, engines, and Batteries expected to become key directions.

Downstream application scenarios: EHang's operation certification (OC) application is expected to be approved this year, with the country’s first eVTOL manned tourism scenario likely to be implemented at Hefei Luogang Park. This represents a new model for low-altitude manned cultural tourism scenarios, which will gradually roll out next year. Meanwhile, low-altitude cargo scenarios have already been implemented in Hefei, Zigong, Chengdu, covering various scenarios such as dining delivery, medical distribution, and express transportation, which are expected to quickly achieve commercial operation.

It is recommended to pay attention to the symbols.

Infrastructure construction segment: Laise Information (688631.SH), Shenzhen City Transport (301091.SZ), Jsti Group (300284.SZ), Naru Radar (688522.SH), Glarun Technology (600562.SH), Sun Create Electronics (600990.SH), Geovis Technology Co.,Ltd (688568.SH), Guangzhou Haige Communications Group Incorporated (002465.SZ), Brilliance Technology (300542.SZ), Long Yuan Construction Group (600491.SH), etc.

Aircraft complete machines: AVICOPTER PLC (600038.SH), China Aerospace Times Electronics (600879.SZ), EHang (EH.US), Zhejiang Wanfeng Auto Wheel (002085.SZ), Zongheng Co., Ltd. (688070.SH), Guandian Defense (688287.SH), etc.

Aircraft supply chain: Chongqing Zonsen Power Machinery (001696.SZ), Guanglian Aviation Industry (300900.SZ), Weihai Guangwei Composites (300699.SZ), Wolong Electric Group (600580.SH), Zhuhai Enpower Electric (300681.SZ), Gresgying Digital Energy Technology (600212.SZ), etc.

Low altitude applications: Citic Offshore Helicopter (000099.SZ), Zhejiang Sunriver Culture Tourism (600576.SZ), etc.

Risk Warning

Macroeconomic performance is below expectations; Infrastructure construction is below expectations; Technological research and development is below expectations, etc.