Analysis of Investment Opportunities in the Industrialization of 3D-Printed Aero-Engines

Now, based on the collected information, I will prepare a systematic and comprehensive analysis report for you.

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In January 2025, China’s first independently developed 3D-printed turbojet aero-engine successfully completed its first single-engine flight test in Dingbian County, Shaanxi Province[1]. This flight test achieved several important results: a flight altitude of 6,000 meters, a flight duration of 30 minutes, and a maximum flight speed of Mach 0.75. The successful maiden flight of this engine marks a zero breakthrough in China’s engineering application of whole-engine 3D printing for aero-engines, which is of milestone significance[1].

From a technical perspective, 75% of the engine’s components are manufactured using 3D printing technology[2]. This figure fully demonstrates the in-depth application capability of additive manufacturing technology in the aero-engine sector, known as the “crown of industry”. Compared with traditional subtractive manufacturing, 3D printing technology enables integral forming, which greatly simplifies structural design and shortens the manufacturing cycle from years to weeks[2].

The technical difficulty of 3D printing for aero-engines far exceeds that of ordinary product manufacturing, mainly reflected in the following dimensions[1]:

Technical Difficulties	Specific Requirements	Significance of the Breakthrough
Material Specificity	Use of high-temperature alloys with high hardness, high melting point, high cooling shrinkage rate, and complex composition	Material utilization rate reaches over 90% (only 15%-25% for traditional forging)
Accuracy Requirements	No deviation allowed in the accuracy of key components	Enables precision designs such as labyrinth cooling channels that cannot be achieved by traditional processes
Performance Standards	Turbine blades must bear the weight of a car on a finger-sized area	Integral forming reduces assembly risks and simplifies operation and maintenance processes

According to experts from the Hunan Aviation Powerplant Research Institute of Aero Engine Corporation of China, the R&D team innovatively proposed the concept of “deep integration of multi-disciplinary topology optimization design technology and 3D printing manufacturing technology”, overcoming key technical bottlenecks such as increased vibration[1]. The final product achieved significant optimizations including reduced fuel consumption, improved thrust-to-weight ratio, and a 60% reduction in the number of parts[1].

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China’s aviation equipment industrial chain presents a complete upstream and downstream collaborative pattern[3]:

┌─────────────────────────────────────────────────────────────────┐
│                Panorama of Aviation Equipment Industrial Chain  │
├─────────────────────┬─────────────────────┬─────────────────────┤
│        Upstream     │        Midstream    │       Downstream    │
├─────────────────────┼─────────────────────┼─────────────────────┤
│ • Advanced Metal Materials │ • Aero-Engines        │ • Complete Machine Manufacturing │
│ • Polymer Materials  │ • Airframe Structures │ • Maintenance Support          │
│ • Composite Materials│ • Avionics Systems   │ • Operation Services           │
│ • Key Components     │ • Electromechanical Systems │ • Modification and Upgrading    │
└─────────────────────┴─────────────────────┴─────────────────────┘

According to data from the ZhongShang Industrial Research Institute, the market size of China’s aviation equipment reached approximately RMB 153.5 billion in 2024, a year-on-year increase of 10.43%, and is expected to reach RMB 170.4 billion in 2025[3]. In terms of industrial structure, aircraft complete machine manufacturing accounts for 56.1%, aviation components account for 28.7%, aero-engines account for 11.1%, and airborne equipment and systems account for 4.1%[3].

Echelon	Representative Enterprises	Core Competitiveness
First Echelon	AECC Aero Engine Power Co., Ltd., AECC Control Technology Co., Ltd., AECC Aero Engine Technology Co., Ltd.	Central enterprise background, complete machine manufacturing capability
Second Echelon	AVIC Heavy Machinery Co., Ltd., Aero-space Forging Co., Ltd., Yingliu Co., Ltd.	Leading forging and casting technology
Third Echelon	CISRI Gaona Co., Ltd., BLT, Hangya Technology Co., Ltd.	High-temperature alloy and 3D printing technology

In terms of the incremental market for military aero-engines, the market space is expected to reach USD 33.51 billion in the next decade; the stock maintenance market is approximately USD 40.212 billion, totaling over USD 73.7 billion[4]. In the civilian market, according to forecasts from COMAC (Commercial Aircraft Corporation of China, Ltd.), the total market size of civil aero-engines will reach approximately RMB 1.9 trillion in the next 20 years[5].

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The industrial application of 3D printing technology in the aero-engine sector is fundamentally transforming the investment logic of the industrial chain:

Traditional aero-engine component manufacturing uses subtractive processing, with a material utilization rate of only 15%-25%, and requires large investments in molds and tooling. 3D printing technology increases the material utilization rate to over 90%, while eliminating a large amount of mold costs, transforming component manufacturing from a cost center to a value-creating segment[6].

In the traditional forging/casting field, developed countries have accumulated profound technical experience and equipment advantages. As an emerging technology, 3D printing enables China to overtake competitors via a new track in key sectors such as aero-engines, relying on new technology R&D and a complete industrial chain[1].

3D printing technology enables integral forming of complex structures, promoting the transformation of aero-engine design from “component assembly” to “system integration”, which creates new investment opportunities for enterprises with system integration capabilities.

• Titanium Alloy Powder
  : Aerospace-grade titanium alloy is the core material for 3D-printed aero-engines. Its price dropped from RMB 600/kg in 2023 to below RMB 300/kg in 2024, a decrease of over 50% in two years[7]
• High-Temperature Alloy
  : Used in hot-end components such as turbine blades and combustion chambers. The demand scale is expected to correspond to 1.56 million hours/year in 2025 and reach 3.03 million hours/year in 2028[8]
• Aluminum Alloy Powder
  : Widely used in fields such as UAVs and general aviation aircraft

• GRINM Advanced Materials Co., Ltd. (688112)
  : 3D printing powder materials account for 1.48% of its revenue. Its products include titanium alloy, copper alloy, and high-temperature alloy powders, and it has supplied goods to aero-engine component manufacturers[9]
• Baowu Magnesium Industry Co., Ltd. (002182)
  : A leading domestic manufacturer of lightweight metal materials, with the capability to supply raw materials for additive manufacturing of high-performance structural components used in aerospace[2]

According to Wohlers statistics, the global 3D printing market size reached USD 21.9 billion in 2024, and is expected to reach USD 114.5 billion in 2034[7]. The localization rate of metal 3D printing equipment in China has increased from less than 30% five years ago to 60%[7].

• BLT (Xi’an Bright Laser Technologies Co., Ltd.) (688333)
  : The leading domestic metal 3D printing enterprise, with a full industrial chain layout covering raw materials, equipment, and customized products[8]
  • H1 2025 revenue reached RMB 667 million, with a year-on-year growth of 17.22%[10]
  • Launched the world’s first metal additive manufacturing automated production line BLT-Lines, realizing coordinated operation of 8 devices[10]
  • The BLT-S1025 model with a forming size of 2500mm broke through the integral manufacturing technology of extra-large components[10]
  • Signed a new part number work package for the A320 with Airbus, accelerating its internationalization process[10]

• Farsoon Technologies Co., Ltd. (688433)
  : Its multi-laser equipment performance is on par with European and American products, while the price is 30% lower. It has entered the supply chains of aerospace and new energy vehicle enterprises[7]

• AECC Aero Engine Power Co., Ltd. (600893)
  : The only domestic manufacturer of full-spectrum military aero-engines, covering almost all engine models of China’s main aviation aircraft[11]
  • 2025 target stock price is RMB 46.28, with a 15.23% upside potential from the current price[12]
  • Analysts have given a “Strong Buy” rating[12]

• AVIC Heavy Machinery Co., Ltd. (600765)
  : Leading in forging/casting + laser additive composite manufacturing technology. It will increase capital by RMB 85.5 million in December 2025 to strengthen additive R&D capabilities[13]
• Aero-space Forging Co., Ltd. (688239)
  : Leading in precision rolling and free forging technology for ring forgings[5]
• Hangya Technology Co., Ltd. (688510)
  : Focuses on compressor blades, and supplies batches to international leaders such as Safran and GE[5]

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1. Full Industrial Chain Layout
   : Covers metal 3D printing raw materials, equipment, customized products, process design and development, and technical services[8]
2. Technological Leadership
   : Participates in 3D printing manufacturing for 7 aircraft models, 4 UAV models, and 7 aero-engine models[14]
3. Customer Resources
   : The main equipment supplier for the additive manufacturing project of Airbus A330, and its S310 model has passed Airbus certification[14]

Indicator	2024	H1 2025	Year-on-Year Growth
Operating Revenue	RMB 1.326 billion	RMB 667 million	+17.22%
Net Profit Attributable to Parent Companies	RMB 104 million	RMB 76 million	+9.98%
Gross Profit Margin	-	42.18%	Remained Stable

• Plans to invest RMB 5.11 billion in capacity expansion for metal additive manufacturing[8]
• After expansion, it is expected to achieve 3.105 million hours/year of metal 3D printing customized product machine time, 1,400 units/year of printing equipment, and 1,200 tons/year of printing materials[8]

: Maintain “Buy” rating. The net profit attributable to parent companies for 2025-2027 is expected to be RMB 238 million, RMB 355 million, and RMB 441 million respectively[10]

1. Monopolistic Position
   : The only domestic enterprise that manufactures full types of military aero-engines including turbojet, turbofan, turboshaft, turboprop, and piston engines[11]
2. Full Coverage of Models
   : Covers almost all engine models of China’s main aviation aircraft, and is the only domestic supplier of engines for multiple aircraft models[11]
3. Strategic Value
   : The Y-20B transport aircraft has been retrofitted with the domestic WS-20 high-bypass turbofan engine, accelerating the localization process[3]

Indicator	Data
Market Capitalization	RMB 107.37 billion
Price-to-Earnings Ratio (P/E)	448.55x
Price-to-Book Ratio (P/B)	2.68x
Analyst Target Price	RMB 46.28
Upside Potential	+15.23%

• Disclosure of progress on the next-generation strategic bomber
• Progress of domestic military high-bypass turbofan engines
• Continuous orders for transport aircraft and modified special aircraft[11]

1. Technological Uniqueness
   : Leading in domestic “forging/casting + laser additive” composite manufacturing technology[13]
2. Strategic Layout
   : Will increase capital by RMB 85.5 million in December 2025 to strengthen R&D capabilities for its core additive business[13]
3. Customer Resources
   : Long-term supporting supplier to aerospace prime contractors

According to institutional forecasts, the company’s net profit attributable to parent companies for 2025-2027 will be RMB 1.053 billion, RMB 1.291 billion, and RMB 1.402 billion respectively, corresponding to P/E ratios of only 24x, 19x, and 18x, which is significantly lower than the average valuation of the military high-end manufacturing sector[13].

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Based on the above analysis, it is recommended that investors focus on the following three main investment themes:

• Industrial Grade: BLT (market share over 40%), Farsoon Technologies (leading in multi-material compatible equipment)
• Consumer Grade: Creality (39% market share, global No.1)

• Titanium Alloy Powder: AVIC Metal Additive Technology, GRINM Advanced Materials
• High-Temperature Alloy: CISRI Gaona, Fushun Special Steel
• Aluminum Alloy Powder: Baowu Magnesium Industry

• Humanoid Robots: Lizhong Group (RMB 75 million structural component order landed)
• Commercial Aerospace: Yinbang Shares (deeply bound to the “Liangxi Constellation” project)
• Aviation Manufacturing: AVIC Heavy Machinery, AECC Aero Engine Power

• 2025 is the dual first year of 3D printing for “order landing + capital acceleration”[7]
• 2026 will witness the triple resonance of “technological dividend + scenario explosion + globalization”[7]
• 3D printing technology for aero-engines has been verified by flight tests and entered the large-scale application stage[1]

Risk Type	Specific Content	Response Strategy
Technical Risk	Key core components of additive manufacturing equipment rely on imports	Pay attention to the progress of domestic substitution
Market Risk	Downstream customer sectors are relatively concentrated	Pay attention to the progress of customer diversification
Policy Risk	Changes in national defense policies and funding budgets	Pay attention to the prosperity of the military industry
Competition Risk	Technological iteration by international giants	Pay attention to R&D investment intensity
Valuation Risk	Valuations of some companies are relatively high	Pay attention to performance fulfillment

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1. Technological Breakthrough Confirms Industrialization Feasibility
   : The successful maiden flight of the first 3D-printed turbojet engine verifies the engineering feasibility of the technology in the aero-engine sector, filling a domestic gap[1].
2. Industrial Chain Investment Landscape is Being Reshaped
   : The entire industrial chain of 3D printing technology, from materials and equipment to services, will benefit. There are significant investment opportunities in upstream materials, midstream equipment, and downstream applications[2][7].
3. Leading Enterprises Benefit First
   : Enterprises with core technological advantages such as BLT, AECC Aero Engine Power, and AVIC Heavy Machinery will occupy advantageous positions in the long-term track[8][13].
4. 2025-2026 is a Critical Layout Window
   : Technology verification has been completed, large-scale application is about to start, which is the best time to lay out high-quality targets in the industrial chain[7].

From the perspective of industrial development trends, the application of 3D printing technology in the aero-engine sector will follow the evolution path of “from components to complete machines, from military to civilian use, from testing to mass production”. According to GE’s forecast, 3D-printed parts are expected to account for 50% of aero-engine components[8], which means a hundred-billion-level market is taking shape.

For investors, they should seize the industrial chain restructuring opportunities brought by 3D printing technology, focus on laying out leading enterprises with core technological advantages, and pay attention to changes in investment opportunities during technological iteration and industrialization process.

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[1] Xinhua News Network - China’s First 3D-Printed Aero-Engine Completes Flight Test

[2] Caifuhao - Aero Engine Corporation of China’s 3D-Printed Engine Successfully Completes Maiden Flight

[3] Sina Finance - 2025 China Aviation Equipment Industrial Chain Map and Investment Layout Analysis

[4] Dongxing Securities - Defense Industry: Sorting Out the Aero-Engine Industrial Chain

[5] Huatai Securities - Aero-Engines: The Crown Jewel of the Nation

[6] 36Kr - Robot + Commercial Aerospace Dual Boost

[7] 36Kr - Development Analysis of the 3D Printing Industry

[8] Cinda Securities - BLT: A Rare Leader in 3D Printing

[9] Sina Finance - Investment Analysis of GRINM Advanced Materials

[10] Soochow Securities - Mid-2025 Report Review of BLT

[11] Tianfeng Securities - Initial Coverage Report of AECC Aero Engine Power

[12] Investing.com - Stock Analysis of AECC Aero Engine Power

[13] Caifuhao - In-Depth Research on AVIC Heavy Machinery’s 3D Printing Business

[14] BLT Prospectus

[15] Caifuhao - 2025 Development History, Relevant Policy Sorting, and Industrial Chain of China’s 3D Printing Industry