Considering that the development stage of low-altitude aircraft is far less than that of the automobile industry, there is currently some uncertainty about the number of new products and the inspection value of individual products, and the market size is expected to be smaller than that of the automobile inspection industry in the short to medium term.
The Zhitong Finance App learned that Changjiang Securities released a research report saying that there is a certain degree of comparability between automobile R&D testing and airworthiness forensic testing of low-altitude aircraft. Both occur before a new product is marketed, and there are certain mandatory requirements. Before a new car is launched, it is necessary to pass the Ministry of Industry and Information Technology's announcement inspection, etc., and low-altitude aircraft need to obtain a TC/PC/AC certificate from the Civil Aviation Administration of China. The bank estimates that in 2022, China's automobile inspection market will be about 19.7 billion yuan. Considering that the development stage of low-altitude aircraft is far less than that of the automobile industry, there is currently some uncertainty about the number of new products and the inspection value of individual products. The market size is expected to be smaller than the automobile inspection industry in the short to medium term; pay attention to the progress of new low-altitude aircraft product research and development.
Changjiang Securities's views are as follows:
Which products require an airworthiness license?
According to the “Interim Regulations on the Administration of Unmanned Aircraft Flight” issued by the Central Military Commission in 2023, “Engaging in the design, production, import, flight and maintenance activities of medium and large civil unmanned aerial vehicle systems shall apply for an airworthiness license from the competent civil aviation department under the State Council in accordance with the law”, and aircraft that have obtained airworthiness permits need to re-apply for airworthiness permits after major design changes; “Engage in the design, production, import, flight, maintenance, assembly, and assembly of micro, light and small civil unmanned aerial vehicle systems without obtaining an airworthiness license, but related products It shall comply with the relevant provisions of product quality laws and regulations and relevant mandatory national standards.” What certifications are required for unmanned aerial vehicles? The Civil Aviation Administration of China (CAAC) uses strict license management methods for aircraft. Aircraft require three certificates from design and manufacture to market sales: 1) Type Certificate (TC), which is a certificate issued to the applicant by the Civil Aviation Administration of China to indicate that the product model design is safe and reliable; 2) Production License (PC), which is also a certificate issued to the applicant to prove that the manufacturer has established a complete quality system to ensure that every aircraft produced can meet the approved design level; 3) Airworthiness Certificate (AC) is issued to this product (only for this aircraft) ), which is considered to be in line with the approved design and is in a safe state of use. The above 3 certificates are all necessary supporting documents before the product is sold.
How long is the airworthiness certification cycle?
According to Ehang Intelligence's EH216-S unmanned manned aircraft forensic experience, the Civil Aviation Administration of China officially accepted the application in January 2021. It took more than 1,000 days to complete the entire forensic process, and successfully obtained the Model Certificate (TC) in October 2023. Therefore, certification of airworthiness is a relatively long and arduous process.
What are the main tests for airworthiness forensics?
In the process of applying for TC, PC, and AC for an aircraft, a third-party inspection agency approved by the Civil Aviation Administration of China is required to conduct tests and tests, and issue test certificates, including laboratory tests, ground tests, and flight tests. The main tests include but are not limited to: 1) Environmental reliability: stability of product performance simulating real temperature, moderation, pressure, noise, etc.; 2) Electromagnetic compatibility: testing of airborne electrical and electronic systems, electromagnetic environment testing for airport radio stations, etc.; 3) Failure analysis: failure diagnosis of raw materials and product performance of electronic components; 4) Software Information technology: airborne software testing, flight data governance, aviation data safety, etc.; 5) Chemical analysis: environmental testing for aviation products, cabin air quality testing, material analysis, etc. It should be noted that airworthiness forensic testing is a business that occurs during new product development. It has little to do with the operating side and sales volume. It is expected that there will also be a lot of demand in the early stages of industry development and in the new product development stage of many manufacturers.
How large is the airworthiness forensic testing market?
The bank believes that there is a certain degree of comparability between automobile R&D testing and airworthiness forensic testing of low-altitude aircraft. Both occur before a new product is marketed, and there are certain mandatory requirements. Before a new car is marketed, it is necessary to pass an announcement inspection from the Ministry of Industry and Information Technology, etc., and low-altitude aircraft need to obtain a TC/PC/AC certificate from the Civil Aviation Administration of China. The bank estimates that in 2022, China's automobile inspection market will be about 19.7 billion yuan. Considering that the development stage of low-altitude aircraft is far less than that of the automobile industry, there is currently some uncertainty about the number of new products and the inspection value of individual products. The market size is expected to be smaller than the automobile inspection industry in the short to medium term; pay attention to the progress of new low-altitude aircraft product research and development.
Which agencies have a business layout for low-altitude aircraft testing?
1) Radio and Television Metrology (002967.SZ): The company disclosed that it can engage in testing services related to airworthiness forensics. The company announced on official WeChat that it is deeply involved in the airworthiness testing of Ehang Intelligence's EH216-S unmanned manned aircraft, and undertook environmental reliability tests and electromagnetic compatibility tests for device-level products of various systems such as flight control, airborne communication, power units, and batteries; Radio and Television Metrology is also the third party agency with the most comprehensive certification capabilities of COMAC, and undertook certification and test guarantees for hundreds of important models such as the C919, ARJ21, AG600, and MA700. 2) Penney testing (300887.SZ): The company can provide environmental reliability testing, electromagnetic compatibility, electronic and electrical hazardous substance testing services in the field of drones.
Risk warning: 1) Low-altitude aircraft are still in the early stages of industrial development, and policy progress is slow; 2) Industry competition is increasing the risk.