The Zhitong Finance App learned that Open Source Securities released a research report saying that the low-altitude economy is becoming a “new track” for industrial development focused on in various regions. 2024 is the first year of low-altitude economic development, and infrastructure construction is the primary prerequisite for the development of the low-altitude economy. Referring to the definition of Shenzhen's low-altitude infrastructure framework, the low-altitude economic infrastructure framework includes four “networks”, namely “facility network”, “air network”, “route network”, and “service network”. At present, places such as Shenzhen and Anhui are at the forefront of the country in low-altitude infrastructure construction, gradually moving from the policy stage to the industrial implementation stage. The low-altitude economy industry has ushered in a period of rapid development, and infrastructure construction is the primary prerequisite for the development of the low-altitude economy.

Open source securities views are as follows:

Infrastructure construction is the primary prerequisite for developing a low-altitude economy

The low-altitude economy is becoming a “new track” for industrial development focused on in various regions. The bank believes that 2024 is the first year of low-altitude economic development, and infrastructure construction is the primary prerequisite for the development of the low-altitude economy. Referring to the definition of Shenzhen's low-altitude infrastructure framework, the low-altitude economic infrastructure framework includes four “networks”, namely “facility network”, “air network”, “route network”, and “service network”. The first is a “facility network”, which mainly refers to physical infrastructure, including low-altitude flight take-off and landing stations, connecting facilities, energy stations, emergency landing, shutdown facilities, maintenance facilities, support stations, flight tests, etc. The second is “air networking,” which mainly refers to information infrastructure such as low-altitude communication, guidance, and surveillance, including communication facilities, navigation facilities, surveillance facilities, meteorological facilities, etc. The third is “route network”, which mainly refers to low-altitude digital airspace maps, including airspace representation, digital twins, 3D maps, knowledge bases, rule bases, etc. The fourth is a “service network”, which mainly refers to digital management and service systems, including low-altitude monitoring systems, low-altitude flight service systems, low-altitude flight control systems, etc.

To support the high-quality development of the low-altitude economy, there is an urgent need to build a new type of information infrastructure

(1) Communication integration: In other words, “Buff” is superimposed on the communication base station and terminal, and radar-like sensing functions can be added to the original cellular mobile communication capabilities, which can solve the communication and sensing problems of the low-altitude economy very well. (2) Beidou+GPS: According to the “China Civil Aviation Beidou Satellite Navigation System Application Implementation Roadmap”, it is proposed that by the end of 2035, a dual-frequency multi-constellation GNSS technology application system with the Beidou system as the core and compatible with other constellations such as GPS will gradually achieve “full coverage and replaceable” for the application of the Beidou system in the civil aviation industry to provide accurate, complete, safe and reliable navigation services for transportation, general aviation and unmanned aerial vehicle flights. (3) Low-altitude service and control platform: Provides docking services with other airspace management related systems to enable airspace management agencies to “see,” “call,” and “control” aircraft, so that management agencies can grasp air dynamics anytime, anywhere.

Driven by top-level policies, Shenzhen, Anhui and other places are speeding up the construction and implementation of low-altitude infrastructure

From a policy perspective, policy documents such as the “Guiding Opinions of the General Office of the State Council on Promoting the Development of General Aviation Industry”, “14th Five-Year Plan”, “General Aviation Service Support System Construction Overall Plan”, and “Implementation Plan for Innovative Application of General Aviation Equipment (2024-2030)” have been issued one after another. They all proposed strengthening flight service assurance and infrastructure construction, promoting the application of new technologies such as Beidou and ADS-B, and developing core equipment applicable to China's low-altitude airspace communication, navigation, surveillance, meteorological and air traffic service requirements. At present, places such as Shenzhen and Anhui are at the forefront of the country in low-altitude infrastructure construction, gradually moving from the policy stage to the industrial implementation stage.

Investment advice:

National and local policies have been introduced intensively, and the Central Economic Work Conference has also raised the low-altitude economy to the level of a strategic emerging industry. The low-altitude economy industry has ushered in a period of rapid development, and infrastructure construction is the primary prerequisite for the development of the low-altitude economy. The bank focuses on recommending Zhongke Star Map (688568.SH), Aerospace Hongtu (688066.SH), and Putian Technology (002544.SZ). The beneficiaries include Rice Information (688631.SH), Shenzhen Transit (301091.SZ), Sichuan Jiuzhou (000801.SZ), and Xinchen Technology (300542.SZ).

Risk warning: The implementation of the low-altitude policy falls short of expectations; downstream demand falls short of expectations; government finances are tight.