February 12, 2025 Stocks Analysis

Low-altitude Economy Stocks Soar: Rising New Forces

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The low-altitude economy is at the crest of a powerful wave, marked by a surge in share prices among related concept stocksAmong the standout performers, Wan Feng Ao Wei has seen its stock prices skyrocket, drawing considerable attention from investorsMeanwhile, Shangong Shenbei has dazzled the market with an impressive record—seven price limit increases over the past eight trading days, aggregating a remarkable overall increaseOther companies like Guangyang Co., Dong'an Power, Chuan Da Zhi Sheng, Citic Hai Zhi, and Lais Information have also joined the rally, each experiencing gains exceeding five percentThis uptick in stock performance is accompanied by a notable increase in trading volume and turnover rates, which is indicative of heightened investor interest and market activityFor instance, during a singular trading session, Shangong Shenbei hit its price limit again, achieving a staggering 97.75 percent total increase within a brief eight-day window, capturing a turnover rate of 127.98 percent

On that specific day, its trading volume reached nearly seven million shares, with a total transaction amounting to over 1 billion yuanThe current total market capitalization of A-shares has surged to approximately 7.84 billion yuan.

One of the critical catalysts propelling the strength of these low-altitude economy-related stocks is the commencement of construction at the Xiaopeng Huaitian flying car manufacturing baseThis base is poised to produce the aerial components of the “land aircraft carrier,” a modular flying car with an anticipated annual production capacity of 10,000 unitsThe initial phase of the project covers an area of about 180,000 square meters and includes production workshops dedicated to composite materials, connections, coatings, and final assembly, in addition to various auxiliary facilitiesThe initiation of this major project has sparked intense market speculation regarding the potential future advancements in the low-altitude economy

Flying cars, being a key component of this burgeoning sector, signal the entry of low-altitude economic industry into a new phase of developmentThis milestone not only opens new avenues for growth for relevant enterprises but also captivates investors' interestMoreover, the establishment of the manufacturing base is expected to catalyze a chain reaction of growth across related industries, including composites, connector technology, and coating processes, fostering additional opportunities for firms engaged in low-altitude economy concept stocksCompanies such as Wan Feng Ao Wei, which possess distinct advantages in the aviation manufacturing domain, stand to gain appreciably from the expansion of the low-altitude economy.

The government has exhibited a strong commitment to the growth of the low-altitude economy, facilitating a steady yet robust development trajectorySpanning multiple industries—from logistics and urban transportation to agriculture, emergency rescue, sports and leisure, and cultural tourism— the low-altitude economy also intertwines with high-end manufacturing and artificial intelligence

Its broad service scope and extensive industrial chain characterize it as a strategically significant emerging industry, embodying a novel form of productive powerAuthorities have rolled out a comprehensive framework of management regulations, streamlining flight activity approval processes, classifying airspace, and mandating real-name registration for dronesConcurrently, investment in low-altitude flight infrastructure has intensified, with 449 general airports and 32 flight service stations established and registered across the country by the end of 2023, as localities explore viable scenarios for low-altitude economic reinforcement.

The market size of the low-altitude economy is expanding rapidly, reflecting its vast potentialAccording to the China Academy of Information and Communications Technology, the market size for the low-altitude economy in China is expected to surpass 500 billion yuan in 2023, showcasing an impressive year-on-year growth rate of over 33 percent

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Predictions from Zhongtai Securities suggest that the market could break through a trillion yuan by 2026, fostering diverse innovative scenarios and integrationsSimilar forecasts have emerged from various sources, corroborating expectations that the market size for the low-altitude economy could exceed a trillion yuan by 2026.

The applications of the low-altitude economy manifest greatly across various domainsIn the transportation sector, novel modalities like drone deliveries promise to boost efficiency and drive down costsWith regard to agricultural resources management, low-altitude drones perform tasks ranging from irrigation to pest control, significantly enhancing agricultural productivity and easing the burden on farmersIn emergency rescue operations, drones equipped with medical response resources can bypass traffic congestion, reaching critical situations with swiftness and efficiency

Additionally, in the realm of cultural tourism, drone light shows have emerged as stunning spectacles that illuminate the nightlife, while aerial tours offer visitors unique experiencesThe low-altitude economy equally holds immense potential in urban mobility and recreational activities.

The groundbreaking of the Xiaopeng Huaitian flying car manufacturing base is injecting considerable momentum into low-altitude economy concept stocksWith plans for an annual production of 10,000 modular flying cars, the development of this base encompasses significant production areas devoted to composite materials, connections, coatings, and final assemblyThis pivotal project marks a substantive advancement for the low-altitude economy within the flying car sector.

To start, as a frontier of the low-altitude economy, the establishment of this manufacturing base is directing significant capital influxes into related concept stocks

Companies like Wan Feng Ao Wei, which possess competitive advantages in the aviation manufacturing industry, are anticipated to carve out significant shares within the flying car supply chainThe establishment of the base will stimulate advancements in related sectors such as composites and connector technologies, creating abundant business opportunities for firms within this landscape.

Furthermore, the launch of this initiative has greatly intensified market speculation regarding the future of the low-altitude economyAs the technology surrounding flying cars continues to mature and the pace of industrialization accelerates, the market potential for the low-altitude economy will continue to expandIncreased investor confidence is reflected in the rising stock prices for low-altitude economy concept stocks.

The inclusion of the low-altitude economy in government reports underscores the importance that national authorities place on this nascent industry

In the government work report for 2024, developing the low-altitude economy has been explicitly marked as a new engine for economic growth, paving the way for future advancements in this field.

Moreover, news about the intention to establish specialized administrative bodies within relevant ministries provides a significant boost to low-altitude economy concept stocksPlans to form a dedicated management department for the low-altitude economy are currently under pipeline developmentThis initiative will facilitate centralized governance over the low-altitude economy, clearly delineate responsibilities among various departments, and establish a comprehensive coordination mechanism for industry development.

From the central economic work conference, which recognized the "low-altitude economy" as a strategic emerging sector towards the end of last year, to its inclusion in the government's work report at the beginning of this year, to various localities introducing specialized policies geared towards the low-altitude economy, the momentum behind this sector is accelerating

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