Heightened by the prevailing macro narratives, the commercial space sector is currently experiencing significant market enthusiasm. This is further fueled by accelerating domestic commercial space policies, such as the establishment of a dedicated space administration, and rapid technological advancements, including rocket recovery tests, which are providing tangible short-term catalysts for both commercial space and space-based photovoltaics. From a medium-term perspective, global low Earth orbit (LEO) constellations are entering a phase of intensive deployment. In the long run, the strategic layout of space-based computing power is expected to further expand the demand horizon. On the technological development front, DRINDA has taken an equity stake in Xingyi Xinneng, with the two parties establishing a manufacturing joint venture focused on CPI film and related products. CPI film boasts advantages such as high light transmittance, high-temperature resistance, excellent mechanical strength, and good ductility, positioning it as a promising candidate for flexible encapsulation solutions for solar arrays. Competition for LEO satellite orbital and frequency resources is intensifying, contributing to the sector's high热度 under the current macro narrative. Recent data disclosed by the International Telecommunication Union (ITU) shows that China has submitted an application for an additional 203,000 satellites. CICC believes that accelerating domestic commercial space policies and technological progress are delivering substantive short-term catalysts. The medium term will see global LEO constellations in a dense deployment phase, while the long-term demand space will be further opened up by the layout of space-based computing power. Overall, the sector continues to present trading opportunities. A major equity cooperation between leading crystalline silicon cell manufacturers has been finalized, accelerating the commercialization of technological achievements. According to a company announcement, DRINDA signed a Capital Increase Agreement and a Shareholders' Agreement on January 13 with Xingyi Xinneng, its founding team, and existing shareholders. The agreement stipulates a cash investment of 30 million yuan to acquire a 16.6667% equity stake in the target company. Xingyi Xinneng will take over all assets, personnel, and business of Shangyi Photovoltaics, which will subsequently be adjusted to become a wholly-owned subsidiary of the target company. Xingyi Xinneng and its subsidiaries will establish a manufacturing joint venture with DRINDA and its subsidiaries for CPI film and products combining CPI film with crystalline silicon cells, with both parties agreeing to mutual exclusivity. Involvement from manufacturing enterprises across the industrial chain is increasing, highlighting potential opportunities in related catch-up stocks. Beyond the previously analyzed targets (DRINDA, Risen Energy Co.,Ltd., Shanghai Geoharbour Construction Group Co.,Ltd.), other crystalline silicon manufacturers have also officially announced explorations into application scenarios for space-based perovskites. These include, but are not limited to: 1) Jinko Solar Co.,Ltd.: The company announced a strategic cooperation agreement with X-Taltech, a platform enterprise empowering R&D innovation through AI and robotics. The two will jointly establish a合资公司 to advance AI-driven high-throughput research and development of perovskite tandem solar cells. 2) Trina Solar Co.,Ltd.: The company announced that its State Key Laboratory of Photovoltaic Science and Technology has systematically established a complete technological system covering crystalline silicon, perovskite, and III-V compound cells like gallium arsenide. The laboratory set a new world record with an output of 886W for a large-area (3.1 sqm) perovskite/crystalline silicon tandem module and achieved a major breakthrough in the R&D efficiency of perovskite/P-type heterojunction (HJT) tandem cells. CICC believes that Chinese photovoltaic manufacturers currently possess well-developed perovskite technology R&D and experimental reserves. They are poised to demonstrate growth elasticity during the critical short-to-medium term window for the commercial implementation of space-based photovoltaics. Potential risk factors include technological progress falling short of expectations and an unfavorable financing environment.
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