Changes in Hong Kong stocks | Xirui (02507) rose more than 9% in early trading, the company is a leading enterprise in the general aviation aircraft industry, and institutions say they are concerned about the opportunities in the Sino-US general aviation market

The Zhitong Finance App learned that Xirui (02507) rose more than 9% in early trading. As of press release, it had risen 6.57% to HK$40.55, with a turnover of HK$224 million.

According to Huachuang Securities, a total of 3050 new aircraft will be delivered to the General Aviation aircraft market in 2023, with a value of about US$23.4 billion. North America is the largest market for general aviation aircraft, and the Asia-Pacific region is growing rapidly; global general aircraft manufacturers include China Aviation Industry's Xirui, Textron, and Wanfeng Aowei Diamond aircraft. The three companies accounted for 52%. According to reports, Xirui's two aircraft product lines (namely the SR2X series and the Vision Jet series) have successfully established industry standards for self-driving aircraft, and have now been certified and verified in more than 60 countries.

The bank pointed out that the US is the largest general aviation market in the world, and private consumption is the main force and the company's main market; however, there is a big gap between China's general aviation market and the US, but the gap is potential. On February 24, China's “Civil Aviation Law” revision draft, “Promoting the development of general aviation and the low-altitude economy” was a highlight. The bank believes that it may mean that the company has future opportunities to expand in the domestic market. The company currently responds to Wind's unanimous expectations of 17 times PE, which is lower than the valuation of the low-altitude economy sector of the A-share market. It is recommended to pay attention.