China Galaxy Securities released a research report stating that Shanghai recently unveiled specific measures to support the development of the commercial aerospace industry along the G60 Sci-Tech Innovation Corridor. With policy support intensifying alongside technological innovation, satellite constellation deployment is accelerating, launch costs are expected to decrease, and the industrial chain is entering a phase of large-scale expansion. The focus should be on satellites, communications, and space computing. The main views of China Galaxy Securities are as follows.
Policy support is elevating the industry, with national strategy and local action jointly propelling commercial aerospace into a growth phase. The Shanghai Municipal People's Government issued a notice on several measures to support the construction of the source area of the Yangtze River Delta G60 Sci-Tech Innovation Corridor, explicitly aiming to accelerate the development of the aerospace industry. It focuses on key segments of the industrial chain, such as satellite manufacturing and commercial operation, to attract and nurture key upstream and downstream projects, offering funding support of up to 50 million yuan. It also supports the construction of satellite internet constellations, providing a one-time reward of 50 million yuan to enterprises that obtain a basic telecommunications business operating license for satellite communications. This move is a substantial acceleration signal from the local government level, translating national strategy into industrial implementation, and it also serves as a strong stimulant for the entire commercial aerospace industrial chain.
Changes in the wording regarding commercial aerospace in the Government Work Reports over the past two years clearly outline the industry's substantial elevation within the national strategic landscape. In 2024, commercial aerospace was listed as a "future industry" and a "new growth engine" that needs to be "actively cultivated," focusing on nurturing and potential exploration. In contrast, the 2025 report explicitly identifies it as an "emerging industry undergoing cultivation and expansion"—that is, a strategic emerging industry—and emphasizes the need to "promote" its "safe and healthy development." This marks that the commercial aerospace industry has moved beyond the technological exploration phase and entered a "growth phase" where technology is basically mature, the satellite application market is initially formed, and high-quality, large-scale development is urgently needed.
Technological breakthroughs, accelerated launch pace, and ecosystem convergence are driving the entire industrial chain into a new era for commercial aerospace. Since December, there has been a series of密集 developments in the commercial aerospace and satellite communication sectors. These include leading domestic and international companies actively exploring satellite-terrestrial collaborative intelligent computing (space computing) technologies, the successive commencement of reusable verification tests for rockets like the Zhuque-3 and Long March 12, the accelerated deployment of mega-constellations by national team players such as China Satellite Network (GW constellation) and Shanghai Yuanxin (G60 constellation), the release of the National Space Administration's "2025-2027 Action Plan" and the establishment of the Commercial Aerospace Department, and the launch of the Ministry of Industry and Information Technology's commercial trial for the satellite Internet of Things. These events collectively point to three clear industry signals: 1) Rocket reusability and high-capacity technologies have entered the engineering verification stage, with launch costs expected to decrease significantly; 2) The construction of low-earth orbit satellite constellations has officially entered a phase of high-density, regular launches; 3) The "ecosystem mechanism" involving policy, application, and capital is rapidly taking shape. These advancements lay a solid technical foundation and provide industrial leverage for a potential industrialization inflection point around 2026—characterized by the maturation and deployment of reusable rockets, the full-scale acceleration of satellite networking, and breakthroughs in ToB/ToC applications.
The upstream segment of the commercial aerospace industrial chain primarily includes core components and raw materials for rockets and satellites, featuring high technical barriers and a clear trend towards import substitution. The midstream segment encompasses the research, development, final assembly, testing, and launch services for launch vehicles and satellites. The downstream segment is the ultimate link for realizing the value of commercial aerospace, boasting the broadest market space, and includes satellite operations, ground terminals, and various industry applications. Within the commercial aerospace sector, satellite communication is the infrastructure for building a globally covered "space information network," serving as the pipeline connecting space and earth to achieve seamless global communication. Space computing, building upon this, acts as the "intelligent brain" that endows satellites with in-orbit real-time processing, analysis, and decision-making capabilities. It upgrades satellites from mere data transmission channels to intelligent nodes, enabling commercial aerospace to provide services with higher timeliness and greater value.
Investment recommendations suggest focusing on three key themes within the satellite communication and space computing industrial chain: 1) Potential operators related to space computing; 2) Satellite communication equipment providers; 3) Satellite application service providers.
Risks include the potential for satellite internet construction to fall short of expectations, changes in the global political and economic landscape, and delays in the research and development progress of key components.
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