--- title: "China Aviation Securities: Commercial aerospace has entered a rapid development period, and the satellite manufacturing sector is expected to welcome a \"Davis double hit.\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/232041816.md" description: "China Aviation Securities released a research report stating that the commercial aerospace sector has entered a rapid development phase. It is expected that by 2025, with the first flight of new commercial rockets and the accelerated construction of satellite internet constellations, the satellite manufacturing sector will experience both fundamental improvements and valuation increases. Market attention on related listed companies will continue to rise, especially as cross-businesses in areas such as intelligent driving, low-altitude economy, and artificial intelligence will further drive profit growth for related enterprises" datetime: "2025-03-17T07:30:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/232041816.md) - [en](https://longbridge.com/en/news/232041816.md) - [zh-HK](https://longbridge.com/zh-HK/news/232041816.md) generator: "portal-rs" --- # China Aviation Securities: Commercial aerospace has entered a rapid development period, and the satellite manufacturing sector is expected to welcome a "Davis double hit." According to the Zhitong Finance APP, China Aviation Securities has released a research report stating that recently, due to multiple events such as the intensive launch missions, the continuous launch of satellite internet constellations, and the maiden flight of the Long March 8A carrier rocket, market attention and expectations for the commercial aerospace sector have remained at a high level. The acceleration of satellite constellation construction is expected to catalyze improvements in the profit margins of several related companies, particularly in the satellite manufacturing sector. Looking ahead to 2025, with several new models of commercial rockets set to make their maiden flights, the construction of giant satellite internet constellations is expected to accelerate, and the attention on listed companies in the commercial aerospace sector is likely to increase, especially in the satellite manufacturing sector, which is expected to experience a Davis double hit of fundamental improvement combined with valuation enhancement. **Short to medium-term suggestions to focus on the following aspects:** **Listed companies in the satellite manufacturing and satellite internet sectors.** After the successful first launch of low-orbit satellites for satellite internet constellations such as Xingwang Engineering and Qianfan Constellation, the giant satellite internet constellation is expected to enter an accelerated construction phase in 2025. Continuous catalysis of events may bring structural upward opportunities for the satellite sector. **Listed companies with business intersections in strategic emerging industries such as intelligent driving, low-altitude economy, and artificial intelligence.** Intelligent driving, low-altitude economy, artificial intelligence, and the commercial aerospace industry have many overlapping areas in various midstream and upstream fields, such as high-reliability integrated circuits, inertial navigation, radar, satellite high-precision navigation, and satellite special remote sensing applications. The attention on relevant listed companies with layouts in both military and civilian fields is expected to continue to rise. **Listed companies likely to gain special premiums from market value management expectations.** With the frequent introduction of policies supporting mergers and acquisitions and market value management for listed companies, some listed companies in the commercial aerospace industry may strengthen market expectation management or enhance investor communication through mergers and acquisitions (focusing on extending the industrial chain, expanding the second curve, and technological innovation). This is expected to bring more special premiums to relevant listed companies. **Investment opportunity outlook for various sub-sectors of commercial aerospace in 2025** The year 2025 is a critical year for achieving the centenary goal of building a strong military and the concluding year of the "14th Five-Year Plan" tasks. As the "strong aerospace nation" has entered the construction phase, China is expected to implement more policies supporting the development of the commercial aerospace industry and allocate relatively more resources to it. Among them, space infrastructure and applications represented by rockets and satellites are expected to become important development areas under the "strong aerospace nation." The investment logic for each sub-industry is summarized as follows: **Aerospace Launch:** With the unprecedented increase in satellite launch demand, the application of low-cost launch technologies such as reusable rockets will become one of the qualitative changes accelerating industry development. It is recommended to focus on rocket assembly companies that have achieved large-scale launches or have first-mover advantages in the research phase, companies participating in core rocket components or subsystems, and "military technology for civilian use" companies laying out various subfields of rocket manufacturing. **Satellite Manufacturing:** The industry is expected to break away from traditional project-based models and enter a mass production phase, with the revenue and net profit growth rate of the industry expected to gradually increase in the medium to long term. It is recommended to focus on companies with mass production capabilities in the communication and remote sensing small satellite manufacturing fields, those with low-cost and industrialization capabilities, high technology, and those in the process of industrialization, as well as companies laying out in emerging fields such as inter-satellite links, new electric propulsion, and satellite network security protection **Satellite Communication:** Satellite internet applications are expected to become a new driving force for industrial development, and the satellite communication industry is likely to achieve a "shift and acceleration" in the medium to long term. It is recommended to pay attention to supporting companies related to low-orbit satellite internet construction, companies in the ground terminal field with low costs and industrialization capabilities, as well as the aviation and marine satellite internet market, mobile/car direct satellite market, and 6G construction. **Satellite Navigation:** By the end of the 14th Five-Year Plan and during the 15th Five-Year Plan period, the satellite navigation application market is expected to maintain a compound annual growth rate of 15%, with no concerns on the demand side. It is recommended to focus on leading companies in the upstream of the industry chain, traditional leading companies in the midstream, and companies expanding into emerging fields (such as autonomous driving), as well as companies in the downstream layout of the high-precision navigation market and "satellite-guided remote +". **Satellite Remote Sensing:** During the 15th Five-Year Plan period, the demand growth rate of China's satellite remote sensing downstream application market is expected to recover to around 30%. It is recommended to pay attention to companies with diversified customers and balanced revenue structures, companies with scarce remote sensing data sources, companies focusing on sub-sectors of the "trillion national bonds" and "data elements ×" three-year action plan, as well as companies with collaborative layouts in the communication and navigation fields. **Recommended Fields and Stocks:** **Short-term Focus:** Zhongke Xingtu (688568.SH), Aopu Optoelectronics (002338.SZ), Sike Rui (688053.SH) **Commercial Aerospace:** Aerospace ZhiZhuang (300455.SZ) (on-board IC), Guobo Electronics (688375.SH) (on-board TR), China Satellite Communications (601698.SH) (high-orbit satellite internet), Aerospace Huanyu (688523.SH) (ground infrastructure), Shanghai Hanxun (300762.SZ) (communication satellite support), Zhenxin Technology (300101.SZ), Haige Communications (002465.SZ) (Beidou chips and applications), Zhongke Xingtu (satellite remote sensing applications), Aopu Optoelectronics (optoelectronic equipment and carbon fiber), Sike Rui (satellite detection), Xingtuzhihui (832415.BJ) (satellite measurement and control). **Risk Warning** Macroeconomic fluctuations may impact other civilian product businesses of companies, while fluctuations in downstream demand for commercial aerospace may lead to equipment procurement falling short of expectations; there may be uncertainties in the research, development, and mass production progress of commercial aerospace equipment, which may affect the market growth rate of the entire industry chain; some application areas of commercial aerospace are still in the exploratory process, and there may be mismatches between industry demand and supply, leading to non-closed commercial models. Fluctuations in raw material prices may lead to increased costs; with the reform of military product pricing mechanisms and the increase in orders, the performance of some related companies may be affected after price reductions of military products; the industry is highly prosperous, but if there is excessive growth in a short period, there may be a mismatch between performance and valuation at certain times; fluctuations in raw material prices may lead to increased costs ### Related Stocks - [300101.CN](https://longbridge.com/en/quote/300101.CN.md) - [002465.CN](https://longbridge.com/en/quote/002465.CN.md) - [688282.CN](https://longbridge.com/en/quote/688282.CN.md) - [300762.CN](https://longbridge.com/en/quote/300762.CN.md) - [688568.CN](https://longbridge.com/en/quote/688568.CN.md) - [002338.CN](https://longbridge.com/en/quote/002338.CN.md) - [601698.CN](https://longbridge.com/en/quote/601698.CN.md) ## Related News & Research - [What Is Drawing Fresh Attention To Straumann Holding (SWX:STMN)?](https://longbridge.com/en/news/297402655.md) - [District Mines Announces Revocation Of Cease Trade Order](https://longbridge.com/en/news/297375054.md) - [ONEnergy Inc. Announces Resumption of Trading](https://longbridge.com/en/news/297358118.md) - [INTURAI VENTURES ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT | URAIF Stock News](https://longbridge.com/en/news/297374728.md) - [Stocks in Play: Calian Group Ltd.](https://longbridge.com/en/news/297342889.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**