Since March, the concept of "low altitude economy" stocks has suddenly become popular in the capital market.
During this year's National People's Congress and Chinese People's Political Consultative Conference, after the low altitude economy was included in the government work report, the stock prices of the concept stocks of "low altitude economy" began to collectively soar. Some listed companies doubled their stock prices within six trading days, while others were listed on the six consecutive board.
Although several listed companies with the concept of "low altitude economy" urgently disclosed announcements on March 12th, responding that there is currently no business revenue from the low altitude economy field, or the proportion of related revenue is very small, and related products are still in the research and development stage, the popularity of related concept stocks has not dissipated since then.
On March 18th, Yihang Intelligence, a US listed company, listed its EH216-S unmanned manned aircraft on Taobao. On the same day, its US stock price surged significantly, closing up nearly 13%. The A-share low altitude economic sector has also seen multiple stocks hit the limit up, among which Lingnan Holdings, Radio and Television Measurement, Guoxuan High tech, and * ST Xiyu have cooperative relationships with Yihang Intelligence.
In the following days, low altitude economic concept stocks continued to strengthen, with some individual stocks achieving 8 consecutive rebounds. However, many related listed companies still issued announcements stating that the proportion of low altitude economic related businesses is relatively small at present.
It was not until the afternoon of March 25th that low altitude economic concept stocks continued to weaken, with many stocks directly closing their limit down. The stock price continued to open lower on March 26th.
There is no concept of "low altitude economy" abroad, while in China, low altitude economy is not only included in government work reports, but also defined as one of the strategic emerging industries.
In this context, capital began to flow into this industry. Not only in the stock market, but also as an important carrier of low altitude economy, electric vertical takeoff and landing aircraft (eVTOL) have been receiving continuous financing news recently, and car manufacturers such as Xiaopeng and Geely have also stepped down one after another. The EH216-S unmanned manned aircraft launched by Yihang Intelligence on Taobao is also a type of eVTOL.
Many local governments have also begun to consider the low altitude economy as an important lever for future growth. According to incomplete statistics, in 2023, 16 provinces have included "low altitude economy" in their government work reports. Many low altitude economic development conferences and forums have been held in Shenzhen, Hainan, Guangdong, Anhui, Jiangxi and other places.
For a while, new energy, new materials, and new aircraft related to the low altitude economy have all been pushed onto the development trend. However, there is still a long way to go before they are truly commercialized and hyped up in the market. The roller coaster trend of related concept stocks in the capital market also confirms this.
Firstly, the outbreak of the low altitude economic industry chain requires the opening of low altitude airspace.
At present, China's low altitude airspace is still under strict control. To fly at low altitude, it is necessary to apply to the military and air traffic control departments for approval before implementation. If flying without approval, the cost of "black flying" can range from a fine to criminal responsibility.
However, in recent years, some cities in China have begun to apply for low altitude opening pilot programs, and the time for obtaining approval for flight routes in some areas has been significantly shortened compared to before. However, compared with foreign countries, only partial airspace opening and the establishment of limited fixed routes are far from enough. Low altitude economy is about to explode, and what is needed is cross regional airspace opening from point to line and then to surface, which will be comprehensively promoted nationwide.
What is expected is that the airspace management regulations of the People's Republic of China, which are currently seeking opinions, classify the airspace management of cities across the country, and provide a legal basis for how different cities are managed. Once the management regulations are officially introduced, the opening of low altitude airspace is expected to make breakthrough progress.
Secondly, the outbreak of the low altitude economic industry chain also requires the layout of the low altitude transportation network.
Gao Yuanyang, director of the General Aviation Industry Research Center at Beihang University, once described the form of low altitude economy as "a net in the sky and a game of chess underground.". Among them, "a web in the sky" refers to weaving a multi-layer network for low altitude flight to meet the needs of various general aviation flight activities and effectively utilize low altitude airspace resources.
Like the ground transportation network, once the low altitude airspace is opened, it also needs to form an air route map, flight rules, and air support system, which are still blank in China.
"Ground chess" refers to the landing of industries that carry low altitude economy, such as general airports, urban vertical takeoff and landing fields, aviation parks, aviation towns, drone bases, flight camps, aviation cultural and tourism parks, etc.
At present, there are not many general aviation airports in China. There are five large civil airports in New York, while general airports have one every 100 square kilometers. Adequate general aviation airports and suitable takeoff and landing points for different types of aircraft, as well as related charging, maintenance, and ground transportation networks, are important infrastructure for the outbreak of low altitude economy.
According to the author's understanding, the Civil Aviation Administration of China has planned to accelerate the construction of general airports in the next 5-10 years. In the "Civil Unmanned Aerial Development Roadmap V1.0" released by the Civil Aviation Administration of China, it is also mentioned that the goal is to achieve low altitude isolation airspace stratification and zone operation by 2025; By 2035, hub type large unmanned aerial vehicle (UAV) takeoff and landing areas with transfer capabilities will be put into use, and manned/UAV operations will be deeply integrated, forming a complex route network.
This means that it will take at least ten years before eVTOL aircraft can be commercialized on a large scale in the field of urban air traffic.
From the roadmap released by relevant regulatory agencies, it can be seen that the development path of low altitude economy will also be a gradual process.
For example, in October 2023, the Ministry of Industry and Information Technology and four other departments issued the "Green Aviation Manufacturing Development Outline (2023-2035)", which proposed that by 2025, electric general aviation aircraft will be put into commercial application, electric vertical takeoff and landing aircraft (eVTOL) will achieve pilot operation, and key technologies of hydrogen powered aircraft will complete feasibility verification.
The development path of unmanned aviation mentioned in the "Guiding Opinions on Promoting the Development of Civil Unmanned Aviation" issued by the Civil Aviation Administration of China is also based on the planning of operational risks from low to high, from cargo to passenger, from general use to transportation, and from isolation to integration.
Therefore, for the low altitude economy related industry chain, it is still too early to say it will explode at present.