LandSpace has signed formal launch service contracts with China Satellite Network Group (China SatNet) and Yuanxin Satellite, and will provide batch launch services in the future, making its commercial prospects highly promising. The "GW Constellation" and "Qianfan Constellation" are two major satellite internet projects planned by China; among them, the GW Constellation is a broadband internet satellite constellation operated by China SatNet, planning to launch a total of approximately 12,992 satellites, aiming to complete deployment of about 10% of the satellites within five years and finish all launches by 2035. So far, 17 network deployment launches have been completed, with 136 satellites currently in orbit for networking. The Qianfan Constellation is operated by Yuanxin Satellite and plans to launch a total of approximately 15,000 satellites. To date, 6 network deployment launches have been completed, with 108 satellites currently in orbit for networking. On January 8, the General Office of the Guangzhou Municipal People's Government released the "Guangzhou City Plan for Accelerating the Construction of an Advanced Manufacturing Strong City (2024-2035)", proposing to build Guangzhou into a new, globally influential hub for China's commercial space industry by 2035. The plan focuses on tackling reusable rocket technology to provide a solid foundation for the development of medium and large liquid rockets, which will be open for shared use by research institutes, enterprises, and universities nationwide in the future. CSC Financial points out that, supported by national policies and breakthroughs in industrial technology, the commercial space industry is expected to enter a new era. The main segments of the commercial space industry involving informatization include remote sensing and its applications; satellite measurement, tracking, and control systems; CAE simulation/satellite testing; inter-satellite transmission processing modules, communication modules, data processing platforms, etc.; and new scenario expansion focusing on space-based computing power. Furthermore, the current development of commercial space is seen as a cycle of resonance between state-owned and private enterprises. CSC Financial Securities analyst Ren Hongdao stated that China's large-payload reusable rockets have now entered a concentrated "breakthrough period", with a comprehensive policy support system also taking shape simultaneously. Catalysts such as company IPOs, intensive maiden flights of rockets, and accelerated constellation deployment in 2026 are expected to arrive one after another. From a valuation logic perspective, the deviation between valuation and revenue levels in the early stages of industry development is reasonable, and the forward-looking pricing mechanism of the capital market is continuously driving resource allocation towards this strategic emerging industry. Looking ahead, commercial space will gradually shift from concept speculation to performance delivery. Centered around the three core pillars of rocket manufacturing, satellite networking, and downstream applications, the entire industry chain is expected to usher in a golden window period for high-quality development. Zheshang Securities released a research report stating that the space data center industry has progressed from technical verification to the commercial constellation deployment stage, represented by projects like Starcloud-1 and China's "Three-Body Computing Constellation". Estimates suggest that after the first-phase computing constellation is completed in 2027, it could directly drive industrial chain output value exceeding tens of billions of yuan, with the long-term scale potentially surpassing trillions of yuan. Within the next five years, major constellation plans are scheduled to proceed with satellite launches successively. The report recommends focusing on four specific sub-sectors: radiation cooling systems, space-based photovoltaic energy systems, radiation-hardened chips/server packaging, and inter-satellite laser communication. Hong Kong-listed stocks related to the commercial space industry chain include: GOLDWIND (02208): LandSpace's application for an IPO on the STAR Market has been accepted. According to Goldwind's 2023 annual report, the company holds an 8.3% stake in LandSpace Space Technology Co., Ltd. Public information shows that LandSpace, founded in 2015, is one of China's first private commercial rocket companies. In 2023, its Zhuque-2 Yao 2 rocket successfully reached orbit, becoming the world's first liquid methane-fueled rocket to do so. SHANGHAI FUDAN (01385): FPGA chips have consistently been standard equipment for space satellites. The company is a technological leader in high-end FPGAs domestically. For instance, demand from commercial space companies like SpaceX may drive growth in STMicroelectronics' specialized chip business and bolster its performance amidst weak recovery in analog chip demand. CIMC ENRIC (03899): CIMC Enric's commercial space business focuses on core equipment for cryogenic and high-pressure storage, transportation, and refueling. Leveraging its accumulated expertise in cryogenic and high-pressure technologies from the energy equipment sector, it provides propellant storage, transportation, and gas supply systems for rocket launches domestically and internationally. APT SATELLITE (01045): Public information indicates that APT Satellite is a controlled subsidiary of China Satellite Communications Co., Ltd. The APT Satellite Group currently operates the APSTAR-5C, APSTAR-6C, APSTAR-7, and APSTAR-9 satellites, and operates the APSTAR-6D and APSTAR-6E satellites through joint ventures. China Post Securities stated that as the commercialization of space technology accelerates, related companies are expected to achieve breakthroughs in scenarios like satellite internet and remote sensing applications, with the industrial ecosystem becoming increasingly mature and the market scale poised for continuous expansion. DRINDA (02865): Its latest partner, Shangyi Optoelectronics, has a strong background, with core technology originating from the Shanghai Institute of Optics and Fine Mechanics, Chinese Academy of Sciences. It is a rare domestic specialist manufacturer of batteries for satellites, possessing long-term积累 in spacecraft energy system integration, extreme environment engineering verification, and anti-radiation design, and has completed first-principles verification of perovskite materials in the space environment. A Guojin Securities research report notes that this cooperation will technically deepen the company's R&D积累 in perovskite and tandem cells for different space scenarios, and from an industrialization perspective, it is expected to provide reverse empowerment in terms of mass production and operation, allowing both parties to complement resources and take an early lead in the industrialization track of space-based photovoltaics.
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