From the mention of commercial space at the Central Economic Work Conference in 2023 to being included in the government work report in 2024, commercial space has ushered in new opportunities. The industry believes that China has begun the “2.0 era of commercial space”.

The CITIC Securities Research Report predicts that in the commercial space era, space activities follow the main purpose of profit and follow a market mechanism, so the low cost and large capacity of launch vehicles is a future trend. Referring to the development history of SpaceX, it is expected that China's commercial rocket core will benefit from the construction of a satellite constellation in the next ten years.

According to data from Ai Media Consulting, the size of China's commercial space market has maintained rapid growth since 2015. The average annual growth rate from 2017 to 2024 has remained above 20%. The commercial space market is expected to reach about 2.34 trillion yuan in 2024.

Relevant constituent stock information:

1) Gaohua Technology

Reason for selection: The company develops high-quality, high-reliability sensors, converters and other products for commercial rockets, which are mainly used in scenarios such as full-arrow telemetry and control systems, rocket engines, test benches, and launch ranges. The company has established cooperative relationships with commercial space partners such as China Aerospace, Galaxy Power, 01 Space, Interstellar Honor, and Oriental Space

2) Chaojie Co., Ltd.

Reason for selection: When receiving research in April 2024, the company said that it has set up a special commercial space business team. Currently, the business is mainly the manufacture of commercial rocket arrow structural parts, including shell sections, fairings, engine valves, etc. It is expected that production line construction will be completed in May this year

3) Quanxin Co., Ltd.

Reason for selection: The company is an important supporting unit for space stations and manned space engineering, and has undertaken various cable development and support tasks

4) Creative Information

Reason for selection: In the direction of 5G and satellite Internet, the company will continue to maintain its leading edge in satellite communication products in the industry, deepen cooperation with major military research institutes and commercial space companies, and establish an upstream and downstream ecological partnership system in the satellite industry chain

5) Zhongtian rocket

Reason for selection: The company has formed a series of small solid rocket businesses such as rain-enhancing and hailproof rockets, sounding rockets, and small guided rockets

6) Guobo Electronics

Reason for selection: The company has carried out technology research and product development work in the fields of low-orbit satellites and commercial space, and various products have already begun to be delivered to customers

7) Aerospace Micro

Reason for selection: The company is one of the few enterprises in China to enter the satellite operation process. Judging from the time window, industrial layout, enterprise size, resource capacity, etc., it has become one of the leaders in the satellite big data industry

8) Xinyan Co., Ltd.

Reason for selection: The company uses the holding subsidiary Tomorrow's Aerospace Carrier to develop the aerospace business. The company produces products such as low-orbit satellite packages, hooks, slot antennas, etc.; dozens of titanium alloy parts and components produced by the company are used in navigation satellites (high-orbit satellites)

9) Aerospace Huanyu

Reason for selection: In the aerospace process equipment sector, the company undertakes the development, maintenance and service of products such as metal and composite component molding process equipment, assembly frames, automated production lines for composite parts, segment and machine assembly lines, non-standard equipment, etc., and has completed the development and delivery of process equipment for spacecraft such as satellite antenna reflectors and rocket fairings

10) Boyun New Materials

Reason for selection: The carbon/carbon hose lining materials developed by the company have been successfully applied to China's “Fast Boat Series” commercial space solid launch vehicles

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