ATCDI(603357)2024-04-23 15:10Summary of Conference Call Notes Company and Industry Overview - Company: Anhui Design Institute - Industry: Low-altitude economy and aviation design Key Points and Arguments 1. Business and Development Plans - Anhui Design Institute holds the highest grade A qualification, capable of undertaking engineering design across 21 industries, including civil aviation [1] - The institute provides comprehensive consulting services in the low-altitude economy sector through its Civil Aviation Planning and Design Research Institute, positioning itself as an expert think tank for civil aviation development in Anhui Province [1] - The low-altitude economy market in Anhui is projected to reach a trillion scale, presenting significant market opportunities for the institute [1] - The company has established strategic partnerships and collaborations, leveraging its geographical and technical advantages to enhance competitiveness [1] 2. Market Potential and Policy Support - The concept of low-altitude economy was first mentioned in the Central Economic Work Conference and included in the government work report during the National People's Congress, indicating strong government support [2] - Anhui Province is a pilot for national low-altitude airspace management reform, benefiting from policy and geographical advantages [2] - In 2023, 16 provinces included low-altitude economy in their government work reports, highlighting its emergence as a national strategy [2] 3. Operations and Future Development Strategy - The institute is actively expanding into upstream and downstream industries related to the low-altitude economy, focusing primarily on design and planning services [3] - Future plans include exploring new business areas around the low-altitude economy and seeking collaboration opportunities with local governments and market participants [3] - The institute aims to provide one-stop and comprehensive services, supported by its innovation capabilities and technical advantages [3] 4. Investment Outlook and Shareholder Returns - The institute is facing opportunities from state-owned enterprise reforms and market transformations, enhancing service quality and efficiency through R&D investment and digital transformation [4] - The company continues to implement a high dividend policy, reflecting its commitment to shareholder returns, with expectations to maintain industry-leading dividend levels [4] 5. Achievements in Promoting Low-altitude Economy - The institute has completed significant projects, including the medium- and long-term development plan for the general aviation industry in Anhui Province [5] - Ongoing projects include evaluating airspace usage efficiency and developing standards for general airport site comparisons [5] 6. National Attitude and Impact on Low-altitude Economy - The national government has shown strong support for the low-altitude economy, with multiple high-level visits and policy initiatives aimed at promoting its development [6] - The inclusion of low-altitude economy in government reports and the introduction of supportive policies across provinces create a strategic opportunity for industry innovation and rapid growth [6] 7. Advantages and Policy Support in Anhui Province - Anhui is the third province in the nation and the only one in the Yangtze River Delta to pilot comprehensive low-altitude airspace management reform, with significant advantages in policy support [7] - The province has established various institutions and completed infrastructure projects to support the development of the low-altitude economy [7] 8. Company Advantages and Business Layout - The institute possesses qualification thresholds, geographical advantages, and technical strengths, being the only airport design-qualified consulting agency in Anhui [8] - It has established strategic cooperation with civil aviation departments and focuses on top-level design and industry development planning [8] 9. Technical and Service Advantages - As a national high-tech enterprise, the institute has multiple research centers and a strong talent pool, ranking among the top fifty design companies in the country [9] - It offers comprehensive services throughout project preparation, effectively integrating ground transportation technology with civil aviation [9] 10. Plans for Upstream and Downstream Expansion - Currently, the institute focuses on the design market, with plans to explore light asset sectors and potential collaborations with manufacturing and infrastructure investment [10] 11. Business Volume and Growth Potential - Specific business volume in the low-altitude economy has not been disclosed, but policy catalysts are expected to accelerate business growth in the sector [11] 12. Market Scale and Impact on the Institute - The low-altitude economy market is vast, potentially reaching 20 trillion in Anhui and even higher nationally, with the institute exploring new possibilities to adapt to rapid development [12] 13. New Project Orders and Future Planning - In 2023, the institute signed 34 million in civil aviation project orders, with expectations for increased opportunities in 2024 [13] 14. Functional Transformation and Business Expansion - The institute plans to transition from traditional airport design to integrated transportation design, expanding into the broader low-altitude economy [14] 15. Project Order Proportions and Future Potential - The institute's orders for airport feasibility studies represent a significant portion of total investment, with plans to provide certification services for general airports [15] 16. Competitive Advantages in Low-altitude Economy - The institute has first-mover advantages in the low-altitude economy, with integrated design capabilities that are crucial for emerging industries [16] 17. Strategic Consulting Project Sizes - Strategic consulting projects for the low-altitude economy vary in size, with government-level contracts typically ranging from 100,000 to 300,000 [17] 18. Major Shareholder's Involvement - The major shareholder, Anhui Transportation Control Group, primarily focuses on transportation, with no current involvement in the low-altitude economy [18] 19. Order Sources and Profitability of General Airports - Orders mainly come from government investments in general airports, which face profitability challenges due to funding pressures and airspace restrictions [19] 20. Challenges in General Airport Construction - Key challenges include profitability and airspace control, with ongoing efforts to optimize investment scales and improve returns [20] 21. Flight Reporting Requirements - General aviation companies must apply for airspace in advance, with simplified reporting processes for flights below 120 meters [21] 22. Dividend Situation and Reform Plans - The company maintains a high dividend rate of 5.3, with plans for continued shareholder returns and internal reforms to support growth [22] 23. Stock Incentive Plans - The company has implemented stock incentive plans to drive growth and is considering new incentive methods to support emerging industries [23]