Huafu International released a research report projecting that CIRRUS (02507) will achieve revenues of $1.426 billion, $1.654 billion, and $1.928 billion for the years 2025, 2026, and 2027, respectively. Net profits are forecasted to be $162 million, $199 million, and $242 million for the same periods. Utilizing a Discounted Cash Flow (DCF) valuation model, the firm initiated coverage with an "Outperform" rating and set a target price of $11.12 (equivalent to HK$86.72).
As a pioneer and global leader in the personal aviation industry since its founding in 1984, CIRRUS has fundamentally transformed personal flight, having delivered over 10,000 SR2X series aircraft and more than 600 Vision Jets worldwide. By the end of 2024, the company commanded a dominant position in the personal aviation sector, holding a significant market share of 23.2%.
Financially, CIRRUS has demonstrated robust revenue growth, surging from $587 million in 2020 to $1.197 billion in 2024. Concurrently, net profit skyrocketed from $36 million in 2020 to $121 million in 2024, achieving a remarkable Compound Annual Growth Rate (CAGR) of 32.3%. The net profit margin also improved substantially, rising from 6.2% in 2020 to 10.1% in 2024.
General aviation encompasses all flight activities excluding military and scheduled commercial airlines, including private flying and specialized aviation operations. The global private aircraft market has experienced steady growth in both delivery volume and value, with average selling prices also trending upwards. This sustained expansion in global private jet deliveries is driven by a growing population of High-Net-Worth Individuals (HNWIs) and student pilots, further supported by ongoing infrastructure development.
The industry exhibits high concentration, with CIRRUS holding a particularly leading position in the piston aircraft segment. Market share for its two primary aircraft series has shown an upward trajectory. CIRRUS differentiates itself through industry-leading safety performance and a comprehensive "product + service" ecosystem.
CIRRUS's product lineup, ranging from the SR2X series to the Vision Jet, caters to diverse market demands. The SR series is positioned in the high-end piston aircraft market, while the Vision Jet serves as a cost-effective option within the turboprop category. The company's competitive edge stems from its pioneering safety features, including the life-saving Whole Airplane Parachute System (CAPS) and the revolutionary Safe Return Emergency Autoland system.
Crucially, CIRRUS has evolved beyond traditional manufacturing into an enterprise offering a complete "product + service" ecosystem, encompassing services like flight training, aircraft management, and financing. This high customer retention model generates recurring revenue, enhances brand loyalty, and results in high repurchase rates and strong pricing power.
Potential risks include fluctuations in raw material prices; disruptions in the supply chain; intensifying market competition; shifts in customer demand; and changes in government policies.