$Rocket Lab(RKLB.US)Update: 1) RKLB has mastered small rocket recovery technology, and improving profit margins relies on increasing launch frequency to lower average fixed costs, which is also RKLB's strength. In 2022, it achieved a record of 9 launches, and as of November this year, it has already conducted 18 launches, setting another company record while maintaining a 100% success rate, theoretically allowing for lower insurance costs. Gross margin has increased from about 27% last year to 37% recently, and losses are also shrinking.

2) RKLB's performance in the small rocket business is nearly perfect. To reach the next level, it needs to acquire the technology to launch larger rockets. RKLB

predicts that the gross margin for the medium-sized Neutron rocket could reach

40% to 50%, significantly higher than Electron's approximately 30%, mainly due to greater payload capacity and higher launch prices ($50M to $55M), with internal costs expected to be controlled within the $25M to $30M range. Additionally, greater payload capacity will also attract more heavyweight clients, boosting revenue and valuations.

RKLB has been working hard this year to advance the first launch of the Neutron rocket, but the latest announcement delays it to the first quarter of next year.

RKLB is somewhat like SpaceX five years ago or earlier, gradually moving from small rockets to larger ones. SpaceX is, of course, the industry leader, with massive rocket scale and payload capacity, and has already achieved recovery, along with NASA as a major client.