Midday positive catalysts drive the large aircraft sector to strengthen across the board. Leading institutions have proactively positioned themselves in core targets.

During the midday period, the A-share market welcomed multiple positive stimuli, triggering a surge in the large aircraft sector, with 12 core leading stocks in the sector collectively hitting the limit up. Market sentiment for buying significantly heated up. From the overall performance in the morning session, the A-shares quickly stabilized and rebounded after a brief pullback. By the close of the midday session, the number of rising stocks in the entire market reached 3,800, with the profit-making effect spreading widely. Meanwhile, the commercial aerospace sector started up in sync, with the large aircraft sector becoming the core line of market funds. 11 targets achieved limit up, including 2 targets that hit a 20% limit up, highlighting the strong pattern of the sector. It is worth noting that this round of sector rally is not coincidental; there are three core driving logics behind it, and foreign capital has already keenly positioned itself, with Goldman Sachs having entered 6 leading large aircraft stocks early in the third quarter.

From the performance of the targets within the sector in the morning session, the leading stocks in the subdivided fields showed strong trends:

New Power Technology achieved a 20% increase, with its core RF amplifier products providing supporting support for large aircraft; Chaojie Co., Ltd. also recorded a 20% increase, focusing on the research and development and supply of precision components for large aircraft; *ST New Research rose 17%, with a business scope covering the processing of large aircraft components; Zhongchao Holdings, Tianjin Prin, China Satellite, and other targets all achieved a 10% limit up, occupying important positions in the fields of large aircraft cable matching, circuit board supply, and satellite communication system construction; Guoji Precision, Sichuang Electronics, Jinhai Gaoke and other targets also hit the limit up, covering key supporting links such as aircraft bearings, radar components, and filtration systems; Risen Technology and Boyun New Materials entered the limit up camp respectively with soundproof materials and composite material supplies; Feiwo Technology rose 9%, mainly engaged in the matching business of large aircraft fasteners; Aerospace Power, Guanglian Aviation, Hongda Electronics and other targets all saw increases of 7%, focusing on subdivided tracks such as power components, structural parts, and capacitors; Tongguang Cable and Tongyi Zhong increased by 6%, with products covering special cables, high-strength fibers, and other fields; Aerospace Technology rose 5%, focusing on the production and manufacturing of large aircraft aviation forgings.

The strong rise of the large aircraft sector this time is driven by the resonance of three core logics:

Logic one: Acceleration of deliveries and orders, the performance verification cycle is approaching.

The route layout of the C919 large passenger aircraft continues to expand, and the passenger load factor remains high. Currently, the order scale on hand is close to 1,500 aircraft, and the batch delivery process is steadily advancing, bringing a key window period for performance verification to upstream supply chain companies. Meanwhile, COMAC has received significant additional funding, providing sufficient financial support for the research and development of the C929 model and the capacity expansion of the C919, further enhancing the certainty of industry growth.

Logic two: Policy strengthening combined with domestic substitution, the industry's development momentum is robust.

A series of policies such as the 14th Five-Year Plan and the revision of the Civil Aviation Law have laid a strong policy foundation for the development of the large aircraft industry. Breakthroughs in key core technologies such as the domestic engine CJ-1000A have significantly reduced dependence on overseas supply chains, and the demand for localization of upstream materials and components has exploded, providing historic opportunities for market expansion for related enterprises.

Logic three: Order catalysts combined with performance verification, clear and traceable growth paths.

Many companies within the sector have successfully won large orders from COMAC, such as Aerospace Huanyu winning a 246 million yuan order, with core supporting products entering the batch delivery stage, and the performance increment possessing clear verifiability, further strengthening market expectations for the sector's growth potential.

From the perspective of capital layout, the long-term investment value of the large aircraft sector has been widely recognized by leading institutions. Data shows that social security funds have heavily invested in 23 targets in the large aircraft sector, and Goldman Sachs also completed early positioning in 4 leading stocks in the third quarter, with specific targets as follows:

1. Zhongchao Holdings

In the second quarter of this year, Goldman Sachs, Barclays, UBS, Morgan Stanley and other international investment banks significantly increased their positions in it. In the third quarter, the aforementioned institutions continued to increase their holdings, with Goldman Sachs holding 6.2 million shares, making it the second largest shareholder of the company. As a core enterprise in the upstream of the cable industry, Zhongchao Holdings ranks in the top 20 in market share for power cables and is a core supplier for two major power grids; at the same time, it has a deep layout in the special cable field, becoming a core participant in domestic large aircraft cable matching, with significant competitive advantages in the high-end cable sub-sector.

2. Golden Sun

In the third quarter, Goldman Sachs, UBS, Morgan Stanley and other institutions entered the top ten shareholders of the company, with Goldman Sachs holding 600,000 shares, making it the sixth largest shareholder. Golden Sun is a leading player in the field of high-end grinding and polishing materials and intelligent equipment in China. It has successfully entered the supplier system of COMAC, core providing water-resistant sandpaper and other grinding consumables, and is continuously deepening its cooperative relationship with COMAC, constantly expanding the variety of aviation grinding products, being an important force in the localization of grinding consumables for large aircraft.

3. Aero Engine Corporation of China

The social security fund has recently increased its holdings to 3.58 million shares, Goldman Sachs has newly held 1.62 million shares, and UBS has also increased its holdings to 1.53 million shares. As a core leader of Aero Engine Corporation of China, Aero Engine Technology is a benchmark enterprise for key components such as engine casings and blades in China, holding high-barrier qualifications such as AS9100 and NADCAP, supplying products to international aviation giants like GE and RR, deeply integrated into the global aviation industry chain. In the large aircraft field, the company is a core supplier of the C919 matching Changjiang-1000A engine, supplying key components such as fan casings and compressor blades, with a single matching component value of approximately 60 million yuan.

4. Zhongyan Co., Ltd.

Goldman Sachs has newly held 480,000 shares, making it the fifth largest shareholder, and UBS has also newly held 460,000 shares, making it the sixth largest shareholder. Zhongyan Co., Ltd. is a leading enterprise in domestic PEEK materials and the fourth company in the world to achieve a production capacity of over 1,000 tons, being a core participant in the localization of high-end engineering plastics for large aircraft. The 550G resin developed by the company has successfully passed the material certification tests of COMAC, can replace traditional metal materials for use in aircraft door hinges, engine covers, and other components, assisting aircraft in achieving lightweight and flame-retardant performance, occupying an important position in the import substitution process of lightweight materials for large aircraft.