Hualong Securities: Commercial Aerospace Rapid Development, Rockets and Satellite Manufacturing Leading the Way.

Hualong Securities released a research report stating that commercial aerospace is accelerating its development, and the market size is continuously increasing, maintaining an industry "recommended" rating. Countries around the world are accelerating their applications for satellite frequencies and orbital resources, and the industry structure still shows a "head concentration" feature, with the United States, Russia, and China forming the solid first echelon. The market size of China's commercial aerospace industry has exceeded 2.5 trillion yuan by 2025, with rocket and satellite manufacturing as the main investment areas. By the end of 2025, various types of reusable rockets in China will enter the recycling verification stage intensively, laying the foundation for subsequent cost reduction and high-frequency launches. Hualong Securities' main points are as follows: Intense competition for frequency and orbit resources, global space resource competition intensifies Near-earth orbit can only safely accommodate about 60,000 to 100,000 satellites. The International Telecommunication Union follows the principle of "first come, first served, and first come, always benefited" in acquiring orbital and frequency resources, making the global competition for low-earth satellite resources particularly fierce. By the end of 2025, the number of satellites in orbit globally reached 16,881, nearly four times that of 2021. In recent years, countries around the world have accelerated their applications for satellite frequencies and orbital resources. By the end of January 2026, the total number of satellite applications declared by large satellite constellations in China and the United States alone exceeded 1.29 million, far exceeding the number of satellites that can be safely accommodated in near-earth orbit, leading to an escalating competition for space resources. Global satellite deployment is accelerating, with China and the United States leading the global rocket launches The global satellite landscape still shows a "head concentration" feature, with the United States, Russia, and China forming a solid first echelon. In 2025, there were 329 global rocket launches, with a success rate of 97.5% (321 entered orbit). China and the United States dominated the global launches with an 83% share, with the United States leading with 181 launches, followed closely by China with 92 launches (Russia and New Zealand with 17 launches each, Europe with 8). The United States deployed 3,724 satellites, while China deployed 372 satellites. China's commercial rocket launches enter a phase of mass production, with continuous policy upgrades and rapid market size expansion By the end of 2025, China had launched 95 commercial rockets, marking the start of the national-level constellation entering the mass production phase. At the policy level, commercial aerospace has become a national will and has been included in the "government work report" for two consecutive years, with various types of policies continuously upgraded. The market size of China's commercial aerospace industry has exceeded 2.5 trillion yuan by 2025, with rocket and satellite manufacturing as the main investment areas. By the end of 2025, various types of reusable rockets in China will intensively enter the recycling verification stage, laying the foundation for subsequent cost reduction and high-frequency launches. Recommendations: (1) Rocket launch companies: Essence Fastening Systems (301005.SZ), Shaanxi Sirui Advanced Materials (688102.SH), Xi'an Bright Laser Technologies (688333.SH), Shaanxi Zhongtian Rocket Technology (003009.SZ); (2) Satellite manufacturing: China Spacesat (600118.SH), Great Microwave Technology (688270.SH), China Aerospace Times Electronics (600879.SH); (3) Satellite applications: Geovis Technology Co., Ltd (688568.SH), Shanghai Huace Navigation Technology (300627.SZ). Risk warning: Unfavorable changes in the macro environment; errors in the data sources cited; delays in the progress of commercial Addsino Co., Ltd.; policy support or implementation falling short of expectations; technological updates and iterations falling short of expectations.