Commercial Space Sector Ignites with Triple Tailwinds

The commercial space sector is experiencing a major surge. During early trading today (April 15), related stocks were highly active. Western Materials hit the upward trading limit just 15 minutes after the market opened. Guanglian Aviation saw gains exceeding 10% at one point, while stocks like Diankelantian, Xinkemobile, and Xinleineng were also among the top gainers. Satellite and Aerospace ETFs both performed strongly.

Prior to the market open, brokerages were strongly recommending the commercial space sector. Analysts point to three primary catalysts. First, the China Space Conference is scheduled for April 23-26 in Chengdu, where the highest level of support is anticipated. Second, the Long March 10 rocket is set for a net-based recovery on April 28, with market expectations high for thorough preparations and significant progress. Third, Amazon has offered a 23% premium to acquire Globalstar.

Following three consecutive days of limit-up gains for Boyun New Materials, momentum has clearly shifted to the commercial space sector. Western Materials quickly rose to the limit-up after opening. Other previously active stocks in the sector also experienced broad-based increases.

The sector has recently been driven by multiple factors. The successful launch of the Li Jian-1 Y12 carrier rocket, which deployed eight satellites into orbit, marked the beginning of a shift towards routine, flight-like launch schedules. The National Aerospace Administration has established a dedicated office for commercial space, which is gradually commencing operations to promote industry development.

The "2026 China Space Conference (CSC2026)" will be held in Chengdu from April 23 to 26. This conference, co-hosted by the Chinese Society of Astronautics and the China Aerospace Foundation, is a major comprehensive industry event with significant influence, first held in 2018.

This morning, the HH-200 commercial unmanned air transport system, independently developed by the Aviation Industry Corporation of China, successfully completed its maiden flight at the Weinan operations base. This achievement signifies new progress for China in the field of large commercial unmanned transport equipment. All aircraft systems functioned normally during the stable flight, successfully completing the planned mission profile. The HH-200 features a square fuselage, twin engines on a high wing, and a twin-boom design, with a standard cargo volume of 12 cubic meters, expandable to 18 cubic meters, a maximum payload of 1.5 tons, a top cruise speed of 310 km/h, and a maximum range of 2,360 km.

The news of Amazon's acquisition of Globalstar was widely circulated this morning. Amazon announced it will offer Globalstar shareholders two options: $90 per share in cash, or 0.32 shares of Amazon stock. The $90 per share offer represents a 23.5% premium over Globalstar's closing price on Monday. The transaction is expected to be finalized by 2027.

Catalysts for the sector continue to emerge. On April 7, a Long March 8 rocket launched from the Hainan Commercial Space Launch Site deployed the seventh batch of Qianfan constellation satellites into orbit, bringing the total number of in-orbit satellites for the constellation to 126. Approximately 40 hours later, on April 9, a Long March 6A rocket successfully launched another 21 satellite internet low-orbit satellites from Taiyuan. Furthermore, the Jielong-3 rocket successfully completed a sea-based launch mission on the evening of the 11th, carrying a navigation enhancement satellite for the Weili Space constellation, marking the rocket's 11th launch mission, just 20 days after its previous launch.

Citic Securities noted that the deployment pace for China's two major satellite constellations is accelerating. Rocket supply is becoming more diverse, and launch cycles are shortening as launch sites and related infrastructure improve. The GW constellation is expected to achieve regular launches this year, while the Qianfan constellation aims for initial global coverage by year-end.

Additionally, starting in late April, China's commercial space sector will enter a密集 period for testing recoverable rocket technologies. A key catalyst is the anticipated maiden flight of the Long March 10B from Wenchang on April 28, which will simultaneously test a sea-based net recovery system. The Zhuque-3 Y2 rocket is also expected to make another attempt at first-stage recovery within the second quarter. These two rockets employ different technical approaches. The Zhuque-3 focuses on vertical landing; a previous test nearly succeeded but failed in the final landing phase due to an engine anomaly. The Long March 10B utilizes an innovative sea-based net recovery, potentially applicable to larger rockets with less stringent landing precision requirements. Positive progress on both fronts could significantly enhance domestic rocket reusability, substantially reducing launch costs and shortening cycle times, thereby accelerating the commercialization of the entire commercial space industry chain.

Policy support for commercial space is also intensifying. At the Space Computing Power Conference on April 3, a deputy director announced the initiation of studies for a space-based intelligent computing constellation, highlighting its potential to overcome ground-based computing limitations and secure strategic space resources. The Ministry of Industry and Information Technology proposed conducting pilot network verification projects and making breakthroughs in satellite-borne chips and inter-satellite laser communication.

Recently, Anhui province released an action plan for commercial aerospace covering 2026-2028. The plan focuses on areas like rocket reusability and mass satellite manufacturing, outlining seven key projects. It aims to grow the industry's scale beyond 70 billion yuan and have over 200 major enterprises by 2028, supported by the establishment of an application scenario promotion center and an industrial fund to create a closed loop from technology to product to application.