On November 12, 2024, the 15th China International Aviation and Aerospace Exhibition opened at the Zhuhai International Airshow Center, and more than 20 types of advanced UAVs of the "Pterodactyl" and "Yunying" series independently developed by Aviation Industry Corporation of China participated in the exhibition, among which more than 10 types of UAVs such as Pterodactyl-6 and Yunying-350 made their public debut, and the comprehensive anti-submarine configuration of the Pterodactyl-X UAV was displayed for the first time, and the UAV coordination system was increasingly complete.

The new model led the air show, and the UAV collaboration system is becoming more and more complete. On November 12, the 15th China International Aviation and Aerospace Exhibition opened at the Zhuhai International Airshow Center, and the company's self-developed "Pterodactyl" and "Cloud Shadow" series of multi-model advanced UAVs were collectively exhibited, among which more than 10 types of UAVs such as Pterodactyl-6 and Yunying-350 made their public debut, and the Pterodactyl-X UAV comprehensive anti-submarine configuration was displayed for the first time. At the scene of this air show, "Pterodactyl" and "Yunying" gathered together to display large and medium-sized UAV systems including Pterodactyl-6 and Pterodactyl-X, as well as small and medium-sized UAV systems of the Yunying series, from 10 kg to 6 tons, with a full-scene series of lineages of "high, medium and low" collocation and "large, medium and small" integration. From the perspective of combat effectiveness, in the actual combat environment, the "Pterodactyl" and "Cloud Shadow" UAVs have realized the mixed grouping and flexible matching between different models, and have a "large, medium, small" and "high, medium and low" combat system, realizing the package supply of different intensities and different types of confrontation. Through the systematic combat mode, the synergistic effect of "1 + 1 is greater than 2" is achieved, thereby improving the overall combat efficiency.

Medium altitude long-endurance UAV system product: Pterodactyl-X. The UAV combines many advantages such as long range, heavy load, and multi-purpose, and has completely independent intellectual property rights, leading competitiveness, and has now carried out test flight work on a regular basis. With the support of a variety of advanced capabilities, the aircraft is capable of carrying out combat missions such as all-domain reconnaissance and strike, cross-domain support and coordination, environmental confrontation operations, and emergency rescue operations. Expand naval application scenarios: At this air show, the Pterodactyl-X UAV was displayed for the first time in a comprehensive anti-submarine configuration, equipped with a variety of payloads such as sonar buoy pods, torpedoes, air-to-air missiles, and air-to-ship missiles. Its comprehensive anti-submarine capability can provide key support for the maintenance of maritime security, and can perform tasks such as maritime wide-area reconnaissance and surveillance, integrated submarine search and attack, long-range patrol and anti-submarine warfare, and normalized closure and control of key areas.

Low-cost small UAVs: Pterodactyl-6, Yunying-350 UAV, etc. 1) Pterodactyl-6: The UAV has significant advantages such as flexible deployment, agile support, rapid response and high economy, and can achieve normal deployment at a low purchase and use cost, making the UAV not only affordable but also energy efficient under strong confrontation conditions. 2) Yunying-350: The machine has achieved mass production and has been delivered to customers. The Yunying-350 UAV has outstanding advantages such as rapid deployment, rapid dispatch, and short take-off and landing in simple sites, and can be used as a stand-alone machine or as a consumable swarm system.

The "Pterodactyl" UAV helps the high-quality development of the civil UAV industry. 1) "Great Meteorology, Great Emergency":

Driven by the needs of national ministries and commissions, combined with the characteristics of high reliability and high performance of "Pterodactyl", the company has actively explored the civilian scenarios of Pterodactyl around "Great Meteorology and Great Emergency", and has achieved remarkable results. By the end of 24, "Pterodactyl" will be deployed in nearly 10 provinces on a regular basis, forming a 3-hour emergency response circle in major regions across the country, effectively responding to various types of emergency situations, and further enhancing the country's comprehensive disaster prevention and mitigation capabilities. 2) Low-altitude economy: Since February 2021, when the low-altitude economy was written into the "National Comprehensive Three-dimensional Transportation Network Planning Outline", the company has carried out research and application practice from the airport airspace and the civil UAV industry chain, two key aspects of low-altitude economic development:

In terms of airport airspace: AVIC UAV has established the safety of "Wing Loong" UAV in various theaters, regions of civil aviation, more than 10 deployment provinces and dozens of airports in China with the opportunity of nearly 200 mission flights in recent yearsReliable cognition lays the foundation for large-scale flight operations of domestic large-scale UAVs.

In terms of airworthiness: the company has actively carried out the civil airworthiness certification of the "Pterodactyl", and in April this year, the Pterodactyl-2 obtained the first chartered flight certificate issued by the bureau after the promulgation of civil airworthiness regulations.

In the civil UAV industry chain: around the needs of customers to carry out a number of new product research and development, the air show launched the Pterodactyl-6 and Yunying-350 and other products are also for low-altitude applications of new products, which inherited the "Pterodactyl" high reliability at the same time, for the characteristics of civilian customers, greatly improved the convenience of use and economy.

Build an innovation alliance mechanism: give full play to the leading role of "chain length" enterprises, be approved as Sichuan UAV Industry Innovation Center and Pilot Platform, and promote the research of new technologies by unveiling the leader; Under the traction of Aviation Industry Corporation of China, AVIC UAV has fully participated in the pilot work of Kashgar's all-space unmanned system.

Profit forecast: As the company's performance is under pressure due to the pace of delivery and market demand, it is expected that the net profit attributable to the parent company in 2024/2025/2026 will be 2.28/3.08/364 million yuan, corresponding to a valuation of 129/95/81 times, giving an "overweight" rating.

Risk warning: product orders are lower than expected, and product delivery progress is lower than expected.