Major breakthrough in rocket reusability! "Two constellation manufacturing + launch" 5-year 5x growth potential (Related stocks)

On Thursday, concept stocks related to commercial spaceflight moved sharply. Capital Online, UCloud, and others hit the daily limit with a 20% increase, Tianyi New Materials, Aojie Technology, and others rose over 13%, and Yingli Shares, China National Materials Technology, and others hit the daily limit.

In terms of news, according to CCTV News, on February 11, China successfully conducted low-altitude demonstration verification of the Long March 10 launch vehicle system and the maximum dynamic pressure escape flight test of the Dream Ship crewed spacecraft system at the Wenchang Space Launch Site. The first stage of the rocket and the return capsule of the spacecraft respectively landed safely in the designated sea area as planned.

China Aerospace Science and Technology Corporation stated that this test achieved the expected objectives and also marked a major breakthrough in the key technology of reusable launch vehicles in our country.

Huatai Securities commented that this test signifies an important phased breakthrough in China’s lunar exploration project development, and is also a significant breakthrough in the reusability technology of the Long March 10 series rockets. The progress of reusable rockets is an important catalyst for the commercial space sector and a key factor in accelerating the development of the space industry and building a strong space power.

Leverage Funds: Snatching Up Multiple Concept Stocks

Data from Eastmoney Choice shows that as of February 12, leverage funds have been actively buying a number of commercial space concept stocks this year. Among them, Xinwei Communications ranks first with a net financing purchase of nearly 1.9 billion yuan; Lens Technology ranks second with a net financing purchase of over 1.3 billion yuan.

Concept stocks such as Goldwind Technology, AVIC Optoelectronics, Loongson Zhongke, Tianyin Electromechanical, Gede Red Infrared, Triangle Defense, Guangqi Technology, C Electric Science, Hailanxin, AVIC Western Aircraft, China Power Construction, and others have net financing purchases ranging from 1.1 billion to 400 million yuan.

Institutional Research Reports: Low-Orbit Satellite Manufacturing + Launch Market Space Could Grow 5 Times in 5 Years

What stage is the development of low-orbit satellites at? How to view the demand space? According to a research report from China Galaxy Securities, the market space for two-star constellation manufacturing and launches is expected to reach 26.8 billion yuan by 2026, and 127.9 billion yuan by 2030, with a CAGR of 48.1% over five years, nearly five times the current size. Based on the global satellite industry structure ratio, it is estimated that by 2030, China’s ground equipment manufacturing and satellite service downstream operations will contribute 1.3 trillion yuan in related output value. When combined with upstream satellite manufacturing and launches, the entire industry chain market space is very broad.

Research from Zhongtai Securities indicates that Beijing has already released a plan for space data center construction. The plan is to build a first-phase computing power constellation from 2025 to 2027, and achieve “ground data and space computing” by 2030. The acceleration of “space computing” infrastructure will bring new growth points for satellite manufacturing and rocket launches. Overall, China’s commercial space sector has crossed the turning point from exploration to growth. During the 14th Five-Year Plan period, China’s commercial space rocket launch and satellite batch production capacity are expected to significantly increase, and market scale will expand rapidly, presenting major investment opportunities.

Huatai Securities believes that reusable rockets, through the repeated use of key components such as first-stage boosters and fairings, have achieved significant cost reductions. The cost reduction effect is especially evident in industry-leading companies’ practices. The engine and fuselage structure of a type of launch vehicle account for the largest proportion of total hardware costs, with the first-stage booster accounting for about 77.8%. Reuse generates considerable economic benefits. Launch costs account for about 30% of satellite companies’ costs, and the cost reduction effect of reusable rockets will directly benefit satellite companies. Lower launch service prices will first reduce the barrier to satellite deployment, decrease the commercial costs of satellite operations, optimize satellite companies’ cash flow, and the savings will help increase satellite capacity and improve products.

(Original source: Eastmoney Research Center)