The Zhitong Finance App learned that CICC released a research report saying that the eVTOL industry chain is highly coincident with new energy vehicles, and that the new energy vehicle three-electric industry, intelligent driving technology, and lightweight technology provide a good foundation for the development of the eVTOL industry. The low-altitude economic circuit is expected to open up new growth space for the NEV industry chain. Recommended attention: (1) eVTOL mainframes: Xiaopeng Motor (09868), Wanfeng Aowei (002085.SZ), Ehang Intelligence (EH.US), Shangluo Electronics (300975.SZ); (2) eVTOL parts industry chain: Changyuan Donggu (603950.SH), Xingyuan Zhuo Magnesium (301398.SZ), Guangyang (002708.SZ), Wolong Electric Drive (600580.SH), Xiangshan (002870.SZ), Baolong Technology (603197.SH), etc.

Recent developments in the industry:

The March 2024 government work report proposed building new growth engines, such as a low-altitude economy, and emphasized the importance of developing the low-altitude economy. CICC believes that the eVTOL and NEV industry chains are highly coincident, and it is recommended to seize investment opportunities for related targets.

The main views of CICC are as follows:

Central and local policy catalysts are frequent, and the first year of the low-altitude economy may be

At the national level, the December 2023 Central Economic Work Conference positioned the low-altitude economy as a “strategic emerging industry”. The March 2024 government work report proposed building “new growth engines” such as the low-altitude economy, and continued emphasis on the development of the low-altitude economy. At the regional level, 17 provinces or autonomous regions have included the “low-altitude economy” in government work reports, and practical policies such as opening up local low-altitude airspace and industrial subsidies continue to be implemented. According to Xinhua News Agency, China's low-altitude economy will exceed 500 billion yuan in 2023 and is expected to reach 2 trillion yuan in 2030; the main products include eVTOL (electric vertical take-off and landing aircraft), drones (consumer grade, industrial grade), helicopters, and traditional fixed-wing aircraft.

The eVTOL industry is being implemented at an accelerated pace, and airworthiness certification is a key link

According to the official websites of various companies, at present, many domestic companies have completed the development of eVTOL prototypes. The key is to obtain airworthiness certification AC: the eVTOL projects of domestic OEMs such as WoFei Aerospace, Fengfei, Volant, Time Technology, and Yufeng Future have entered the airworthiness certification stage, and overseas manufacturers such as Joby and Lilium also have relatively mature products; the Ehang EH216-S has successfully obtained airworthiness certificates (AC) and reached cooperation with local governments such as Wuxi and Guangzhou. According to reports, on February 27, 2024, Shanghai Fengfei's “Shengshilong” completed the Shenzhen-Zhuhai cross-sea cross-city flight, and on March 8, 2024, Xiaopeng Huitian Flying Car Traveler X2 completed a low-altitude flight in the city's CBD “Tiande Plaza - Canton Tower” area, and application scenarios are gradually being implemented.

eVTOL is highly coincident with the NEV industry chain, and the expansion of downstream scenarios opens up room for growth

The entire eVTOL machine is composed of energy systems, power systems, flight control systems, avionics and airframes. It requires cross-border integration and continuous breakthroughs in core technologies such as electric aviation, intelligent driving, low-altitude route networks, batteries, and weight reduction.

risks

eVTOL commercialization fell short of expectations; low-altitude airspace reforms fell short of expectations.