宗申动力2024年营利双增，航空动力业务收入增长71.74%

Core Viewpoint - Zongshen Power reported significant growth in revenue and net profit for 2024, driven by its leading position in the small and medium-sized power machinery sector and the aviation engine supply business [1][2] Financial Performance - In 2024, Zongshen Power achieved operating revenue of 10.384 billion yuan, a year-on-year increase of 29.84% - The net profit attributable to shareholders was 461 million yuan, up 27.45% from the previous year [1] - The company's stock price rose significantly, starting at over 6 yuan per share at the beginning of the year and exceeding 24 yuan by year-end, with a peak closing price of 33.67 yuan on October 31, 2024 [1] Business Segments - Zongshen Power's main business segments include general machinery, motorcycle engines, aviation power, new energy, and high-end components [1] - General machinery products generated 5.222 billion yuan in revenue, a 35.41% increase year-on-year - Engine products contributed 3.818 billion yuan, reflecting a 13.76% growth - New energy products saw remarkable growth, achieving 579 million yuan in revenue, a staggering 334.84% increase, and accounting for 5.58% of total revenue [2] Aviation Power Business - The aviation power segment, through its subsidiary Zongshen Aviation Engine Manufacturing Co., Ltd., reported revenue of 160 million yuan, a 71.74% increase, with net profit showing a reduction in losses [3] - Zongshen Aviation focuses on providing power systems for general aviation aircraft and drones, having developed over 20 derivative products [3][4] - The company is enhancing its integrated power system technology, aiming for comprehensive design solutions that include engines, propellers, thermal management, and power generation systems [4] Market Opportunities - The low-altitude economy is a significant growth driver for Zongshen Aviation, which is actively adjusting strategies to navigate market pressures and opportunities [3] - The propulsion system is a critical component in the low-altitude industry, accounting for approximately 40% of the cost structure in aircraft manufacturing [5] - Zongshen Aviation is currently working on airworthiness certification for two engine models in collaboration with Shanhe Intelligent [5] Strategic Developments - Zongshen Power announced plans to spin off Zongshen Aviation for a separate listing, which is expected to enhance focus on core businesses and improve market valuation [5]