BOC International: The global commercial aerospace market will further improve, China's aerospace industry has multiple drivers for future growth.

BOC International released a research report stating that in the context of scarcity of satellite orbits and frequency resources, the competition among countries for satellite frequency resources has entered into a fierce state. With the maturity of heavy-lift reusable rocket technology, the trillion-dollar commercial space market has opened up, giving the industry a stronger rating than the broader market. The industry focuses on rockets and satellite core components, as well as investment opportunities brought by the application of 3D printing technology. BOC International's main points are as follows: The "new land grab movement" of space infrastructure, opening up a trillion-dollar commercial aerospace market Satellite orbits and frequencies are strategic resources constrained by physical laws and locked in by international rules. They are relatively scarce, and the competition among countries for satellite frequency resources has intensified. With the maturity of reusable rocket technology and the reduction of launch costs, the number of global rocket launches is rapidly increasing. By 2025, the global number of rocket launches is expected to reach 329, a 25.1% increase compared to the previous year, representing the highest value since the first human space launch in 1957. According to the American Space Foundation's 2025 "Space Report," the global space economy reached $612 billion in 2024, with commercial space revenue accounting for 78% at $480 billion. From 2015 to 2024, global commercial space showed a rapid growth trend, with an average annual compound growth rate of 7.7%. With the intensifying competition for low Earth orbit resources worldwide and the gradual release of demand for space computing power, 6G, and other emerging technologies, the global commercial aerospace market is expected to further expand. China has the capability to cover the entire aerospace industry chain, with multiple drivers for future development China's aerospace industry has evolved from nothing to becoming a significant force in the global aerospace field. In 2015, with the joint release of the "National Civil Space Infrastructure Mid- to Long-Term Development Plan (2015-2025)" by the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Science, Technology and Industry for National Defence, encouraging private capital to enter the commercial launch field, China took a key step towards commercialization. Currently, China has formed the capability to cover the entire industrial chain of commercial aerospace and is in a key stage of development from "1 to 10." In the future, under the combined influence of downstream demand, policies, and capital, China's commercial aerospace industry is expected to enter a rapid development stage. According to the Forward-looking Industry Research Institute, the period from 2025 to 2030 is expected to be a golden period of development for China's commercial aerospace industry, with the market size reaching 8 trillion yuan by 2030. Rapid development of commercial aerospace, core components, and 3D printing technology expected to benefit In terms of core components, in terms of cost distribution, rockets need to pay attention to the engine and arrow body structure that account for the highest proportion of costs, while satellites need to focus on payload, propulsion, and power systems, among others. In terms of new technologies, metal 3D printing technology has inherent advantages in the aerospace field and suits the increasing demand for aerospace components to be integrated, complex, lightweight, and structurally functional. It has significant cost and time advantages. Overseas, the application of 3D printing in aerospace technology has progressed rapidly, with the United States already achieving system-level or full rocket engine and missile level applications. In China, although some companies are conducting 3D printing of rocket and satellite components, they are still in the research stage of component-level printing technology, lagging behind the foreign counterparts in terms of technology and engineering applications. Therefore, the future application range and penetration rate of 3D printing are expected to continue to increase. Investment recommendations Focus on rockets and satellite core components, as well as investment opportunities brought by the application of 3D printing technology. Recommended companies include Nanfang Ventilator, Wuxi Paike New Materials Technology, Farsoon Technologies. It is recommended to pay attention to companies such as Shaanxi Aerospace Power Hi-tech, Essence Fastening Systems, Xi'an Bright Laser Technologies, Shaanxi Sirui Advanced Materials, China Spacesat, Changshu Tianyin Electromechanical, Jushri Technologies, Inc., Xi'An Xice Testing Technology, etc. Main risks faced by the rating The risk of technological progress falling short of expectations; the risk of fluctuations in downstream market demand; the risk of capital investment falling short of expectations; the risk of industry policies falling short of expectations; the risk of intensified competition.