Guosen: Rapid development of low-altitude economy industry, eVTOL companies and host manufacturers promote airworthiness certification.

Guosen released a research report stating that, in terms of the future large-scale commercial potential, calculations show that the mid-term stock of domestic tourism sightseeing scenes and commuting scenes can respectively bring demand for 24,000 and 85,000 eVTOLs, with the total sales market size exceeding 250 billion. The low-altitude economy industry is developing rapidly, focusing on domestic core enterprises in the power system. The low-altitude economy industry is developing rapidly and is optimistic about Zhuhai Enpower Electric (300681.SZ), a domestic core enterprise specializing in electric drive that has a deep cooperation with EHang Holdings Ltd. Sponsored ADR Class A (EH.US), as well as Chongqing Zonsen Power Machinery (001696.SZ), a high-quality aviation engine manufacturer with promising continuous order acquisition. Guosen's main points are as follows: The low-altitude economy industry chain is gradually taking shape, with huge market potential in the domestic market The supply chain of China's low-altitude economy has formed a full-chain development pattern of "upstream independent breakthrough, midstream collaborative research, and downstream standard leadership," with eVTOL and drone manufacturing as its core, showing a trend of rapid technological iteration and capacity expansion from orders. In terms of the future large-scale commercial potential, calculations show that the mid-term stock of domestic tourism sightseeing scenarios and commuting scenarios could bring demand for 24,000 and 85,000 eVTOLs respectively, with the total sales market size exceeding 250 billion. The power system is the core link of the low-altitude economy industry chain In terms of the value of eVTOL components, the power system, mainly composed of motors and electronic control units, has the largest share of integrated costs in the core structure of eVTOLs. According to data from Lilium, the power system accounts for approximately 40% of the eVTOL's total cost. The market size of the eVTOL power system is mainly based on the demand scale of eVTOL complete machines Based on the estimated total sales market size of 250 billion and the cost structure of eVTOLs, the mid-term stock market space of eVTOL power systems can reach a level of 100 billion. Aircraft power systems are mainly divided into traditional aircraft power systems and electric propulsion systems, with traditional civil aviation passenger aircraft, military aircraft, etc., mostly using traditional aircraft power systems Traditional aircraft power systems are centered around fuel engines, which are mature in technology, capable of providing high power output, suitable for long-duration and heavy-load flights, such as regional aviation, agriculture and forestry operations, and medium to long-distance cargo transportation, but they have high energy consumption, emissions, and noise problems. Traditional aircraft power systems mainly include piston engines, turbojet engines, turbofan engines, turboprop engines, and turboshaft engines, among others. The power system of low-altitude aircraft includes electric motors, electronic controls, and propellers The motor is the core component of the power system, mainly converting electrical energy into mechanical energy to generate lift and thrust. Brushless DC motors are widely used in small and medium-sized drones, while permanent magnet synchronous motors have become the preferred choice for eVTOL motors due to their higher power density and torque density. The hybrid power system of low-altitude aircraft is gradually rising due to its better commercial application effect, and pure electric propulsion systems are expected to become the long-term mainstream choice for eVTOL and drone power systems in the future. Certification of eVTOL motors is a key threshold for market access, benefiting first from new energy automotive motor companies The certification of eVTOL motors has high technological barriers and long certification times. Some mainstream new energy automotive motors in China already meet some of the technical standards required for eVTOLs, enabling enterprises originally focused on the production of electric vehicle motors to enter the eVTOL motor market with a technical foundation and actively deploy in the electric aviation field. Several domestic eVTOL motor companies are still in the early stages of research and development and cooperation, collaborating with main manufacturers to jointly promote certification. Risk warnings: 1. Valuation risk; 2. Profit forecast risk; 3. Risk of low-altitude economic development falling short of expectations.