The defense sector has seen an uptick, with the commercial space industry experiencing a wave of catalysts, including the successful orbital launch of the reusable Zhuque-3 carrier rocket and the collaboration between the "Qianfan Constellation" and Airbus. The Fourth Plenary Session of the 20th Central Committee emphasized achieving the centenary goal of the People's Liberation Army on schedule and advancing high-quality modernization of national defense and military capabilities, signaling long-term growth prospects for the defense industry. GTHT's key insights are as follows:
The Fourth Plenary Session of the 20th Central Committee reiterated the commitment to realizing the military's centenary goal and modernizing defense capabilities, underscoring the sector's positive long-term outlook. The session approved proposals for the 15th Five-Year Plan, highlighting priorities such as enhancing advanced combat capabilities, modernizing military governance, and strengthening integrated national strategic systems.
**Defense Sector Performance** 1) Last week (Dec. 1–5), the Shanghai Composite Index rose 0.37%, while the ChiNext Index gained 1.86%. The defense industry index outperformed, climbing 3.47% and ranking third among 29 sectors. 2) Major defense indices showed strong performance, with CITIC’s defense index leading at a 3.47% increase. 3) On December 3, the Zhuque-3 Y1 carrier rocket was successfully launched from the Dongfeng Commercial Aerospace Innovation Test Zone, completing its mission as planned. The second stage entered the target orbit. Developed by Landspace, the Zhuque-3 is a next-generation reusable liquid oxygen-methane rocket designed for large-scale satellite constellation deployment, featuring low cost, high payload capacity, and frequent launch capabilities. The rocket measures 66.1m in length, with a 4.5m-diameter core and a 5.2m-diameter fairing, weighing approximately 560 tons at liftoff. Key milestones, including stage separation and engine reignition, were executed flawlessly.
**"Qianfan Constellation" Partners with Airbus** On December 4, the "2025 Satellite Internet Ecosystem Conference" in Shanghai’s Songjiang District saw Shanghai Yuanxin Satellite Technology sign a market cooperation agreement with Airbus. This marks a pivotal step for the "Qianfan Constellation" in global integration and exemplifies convergence in space-air-ground communication solutions. Airbus will incorporate the constellation into its in-flight connectivity systems to enhance passenger experience and optimize fleet operations.
**Risk Warnings**: Potential downside risks include weaker-than-expected demand for military products and underperformance in civilian business segments of related companies.
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