1.5 Trillion Yuan Market Booms: Leading Stock Soars 236%, Institutions Ramp Up Research

The low-altitude economy has been elevated to a national strategic level, with its market size projected to reach 1.5 trillion yuan by 2025. Driven by both policy support and market forces, related stocks have demonstrated strong performance.

Under the combined influence of policy incentives, technological breakthroughs, and real-world applications, the low-altitude economy is transitioning from "policy-driven" to "market-driven." Wind data shows that among 70 concept stocks in the sector, 70% reported year-on-year revenue growth in the first three quarters of the year, with companies like China Spacesat Co.,Ltd. (600118.SH) and Addsino Co.,Ltd. (000547.SZ) leading in both financial performance and stock price gains.

**Trillion-Yuan Market Accelerates** The recently released "15th Five-Year Plan" proposal explicitly calls for nurturing emerging and future industrial clusters, including new energy, advanced materials, aerospace, and the low-altitude economy.

Even before the proposal, the sector had already seen explosive growth in 2024. Estimates suggest the market will expand from 670.25 billion yuan in 2024 to 1.5 trillion yuan in 2025—a 127% surge. Recognized as a strategic emerging industry in the 2024 government work report, the low-altitude economy has rapidly developed. According to Dagong International, over 2,427 new enterprises entered the sector in 2024, bringing the total to more than 16,000 by Q1 2025.

The Ministry of Industry and Information Technology projects the sector will reach a trillion-yuan scale by 2030, with the Civil Aviation Administration of China forecasting 3.5 trillion yuan by 2035.

Over 30 provinces have incorporated the low-altitude economy into their development plans, forming industrial hubs in regions like the Greater Bay Area, Yangtze River Delta, and Sichuan-Shaanxi-Chongqing. Shenzhen, for instance, operates 200+ drone routes and hosts 1,700 companies, including DJI and Autel Robotics, dominating 70% of the global consumer drone market.

To support growth, the government has included low-altitude infrastructure in special bond financing, while local authorities have established 113.5 billion yuan in industrial funds across 20 provinces.

**Revenue Growth for Majority of Companies** Wind data reveals that 38 out of 70 low-altitude economy stocks posted revenue growth in the first three quarters, with aggregate revenue up 4.57% year-on-year. Among them, 29 companies saw profit growth, including China Spacesat Co.,Ltd. and Addsino Co.,Ltd., which surged 105.27% and 236%, respectively, from April to December.

Addsino Co.,Ltd., specializing in electronic information technology, focuses on drone R&D, particularly rotorcraft for applications like electronic warfare and emergency response. Meanwhile, Shaanxi Aerospace Power Hi-Tech Co.,Ltd. (600343.SH) and Hunan Aerospace Huanyu Communication Technology Co.,Ltd. (688523.SH) rose 208% and 144.5%, respectively.

Citic Offshore Helicopter Co.,Ltd. (000099.SZ), a leader in general aviation, has reported steady revenue and net profit growth for ten consecutive quarters since mid-2023, with Q1-Q3 2025 figures up 9.05% and 25.53% year-on-year.

**Institutional Interest Heats Up** In Q4, 39 companies received institutional research visits, including four for China Spacesat Co.,Ltd. and two for Addsino Co.,Ltd.. Firms like China Spacesat Co.,Ltd. emphasized leveraging satellite applications and low-altitude integration, while others highlighted expanding drone solutions domestically and abroad.

(Stocks mentioned are for illustrative purposes only and not investment advice.)