Commercial Space Sector Surges with Positive News

The commercial space sector continues to show strong activity! During trading on December 12, stocks related to the commercial space concept surged, with several companies hitting their daily limit-up. Among them, Destiny Tech100 Inc (DXYZ) soared to the limit-up within just one minute after the market opened. Other companies, including Aerospace Changfeng, Shunho Holdings, Zaisheng Technology, and SICHUAN CREATECH, also reached their daily limit-ups.

Analysts noted that Elon Musk's hint about SpaceX potentially conducting an IPO in 2026 has boosted market confidence in the commercial space sector. Reports suggest that SpaceX's valuation could exceed $1 trillion upon listing. This news has spurred positive momentum across the global commercial space industry.

Additionally, another bullish development emerged this morning. At 7:00 AM on December 12, China successfully launched 16 low-orbit satellites for its satellite internet project using the Long March 12 rocket from the Hainan Commercial Space Launch Site. Brokerages highlighted that with policy and funding support, China's commercial space sector is approaching a turning point, with potential synergies between rocket and satellite development.

**Limit-Up Wave** The A-share commercial space sector has been highly active recently. During today's session, the Tongdaxin Commercial Space Index briefly rose over 2%, while the Wind Commercial Space Index surged more than 3%, both hitting new highs. By midday, although gains moderated, nearly 10 stocks remained limit-up, including DXYZ, Aerospace Changfeng, Zaisheng Technology, SICHUAN CREATECH, and Tai'er Group.

Zaisheng Technology, which has risen by the daily limit for five consecutive sessions, clarified in a stock volatility announcement that while market discussions involve its potential supply to SpaceX, its core business focuses on microfiber glass wool for clean air, energy efficiency, and dust-free air conditioning products. Aerospace-related revenue accounted for only 0.5% of its 2024 sales, with minimal impact on overall performance.

**SpaceX IPO Speculation** After yesterday's market close, Musk's hint about SpaceX's potential IPO went viral. In a social media exchange with a tech journalist, Musk suggested the possibility of an IPO. Multiple reports indicate SpaceX may raise over $25 billion in 2026, targeting a valuation exceeding $1 trillion. If achieved, this would rank as the second-largest IPO in history, behind Saudi Aramco's $1.7 trillion listing in 2019. Analysts believe this prospect has fueled optimism in the commercial space sector.

**Further Positive Developments** China's successful satellite launch today marks another milestone. Orient Securities noted that low-orbit satellite deployment has accelerated since July, with private rocket participation and reusable technology advancements easing capacity constraints. Meanwhile, breakthroughs in direct satellite-to-phone connectivity could expand communication applications.

In related news, Landspace recently filed a patent for a reusable rocket landing prediction system, enhancing safety and fuel efficiency. Although its Zhuque-3 reusable rocket test on December 3 did not achieve first-stage recovery, it validated key engineering data, advancing China's methane-fueled reusable rocket technology.

**Market Outlook** Southwest Securities emphasized that private rocket launches and policy support significantly influence the commercial space sector. Given its early-stage development, progress in private rocket capabilities will shape China's commercial space ecosystem. Open Source Securities added that recent government initiatives, including a dedicated commercial space agency and a three-year development plan, underscore strong top-level support, presenting promising investment opportunities.