On May 29th, the satellite navigation sector showed active performance, with Shaanxi Huada up more than 13%, Aerosun Corporation up limit, Northern Long Dragon up more than 8%, Tianjian Technology up more than 6%, and collective rise of Hangtian Huanyu, Shanghai Hugong Electric Group, Zhimingda and other stocks.

According to a report by SpaceNews on May 27th, Shanghai Blue Arrow Hongqin Technology Co., Ltd submitted pre-launch information (API) to the International Telecommunication Union (ITU) on May 24th. The document outlines a plan for a constellation called Honghu-3, which will launch a total of 10,000 satellites on 160 orbital planes.

Later, insiders revealed that the news is true. Currently, this document can be publicly viewed on the International Telecommunications Union website. The specific launch plan for Hongqin Technology's 10,000 satellites is unknown, and it is customary in the industry to launch in batches according to the year. Other insiders said that the actual number of satellites launched may not necessarily be the same as the number applied for.

In a recent research report released by Open Source Securities, Honghu-3 constellation is the third super constellation with more than 10,000 satellites physically planned after the star network GW plan and G60 constellation in China. Unlike the latter two plans, the innovative start-up company Hongqin Technology which was established in 2017 is behind the Honghu-3 constellation.

China's satellite navigation and positioning service output is expected to exceed 530 billion yuan in 2023.

On May 18, the China Satellite Navigation and Positioning Association released the "2024 White Paper on the Development of China's Satellite Navigation and Positioning Service Industry."

The White Paper shows that the overall output value of China's satellite navigation and positioning service industry will reach 536.2 billion yuan in 2023, an increase of 7.09% over 2022.

2006-2023 China's overall output value of the satellite navigation and positioning service industry. Source: China Satellite Navigation Positioning Association

Among them, the core output value of the industry directly related to satellite navigation technology research and development and application, such as chips, devices, algorithms, software, navigation data, terminal equipment, infrastructure, etc. reached 161.1 billion yuan, accounting for 30.04% of the overall output value. The output value derived from satellite navigation applications and services reached 375.1 billion yuan, accounting for 69.96% of the overall output value.

With the continuous expansion of the "Beidou+" and "+Beidou" programs, the satellite navigation service industry in China continues to expand. By the end of 2023, the total number of relevant enterprises and institutions in the field of satellite navigation and positioning services in China has approached 20,000, with a total of nearly one million employees. There are a total of 90 listed companies (including the National Equities Exchange and Quotations) related to the industry, accounting for approximately 8.93% of the overall output value of the country.

In terms of intellectual property, as of the end of 2023, China's cumulative total number of satellite navigation patent applications (including invention patents and utility model patents) has exceeded 119,000, an increase of 4.84% year-on-year, continuing to maintain a global lead.

At present, like the low-altitude economy, commercial aerospace has also been written into the government work report this year and is one of the representatives of "new growth engines."

Expanding global development routes.

On the international front, Musk is actively deploying satellites.

Data shows that a total of 223 carrier rockets were launched globally in 2023, with SpaceX launching 98 times, accounting for 45% of the total global amount, slightly less than the sum of other companies; a total of 2,945 satellites were launched globally, of which SpaceX launched 2,514, accounting for 87% of the total global amount, which is 6.7 times that of other companies.

In 2023, the United States launched a total of 116 rockets, of which SpaceX accounted for 98. The former quasi-state-owned enterprise ULA (United Launch Alliance, jointly established by Boeing and Lockheed Martin) only launched three times.

It is worth mentioning that Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), announced on Monday that it has established a brand-new satellite and space company Neo Space Group (NSG). This strategic move marks a major layout of Saudi Arabia in the commercial aerospace business field, aiming to promote the rapid development of the aerospace industry and provide advanced satellite and aerospace solutions to global customers.

Looking back at China, like the low-altitude economy, commercial aerospace has also been written into the government work report this year and is one of the representatives of the "new growth engines."

The Blue Book of China Aerospace Technology Activities (2023) shows that in 2023, China carried out a total of 67 space launches, including 26 commercial launches, with a success rate of 96%. A total of 120 commercial satellites were jointly developed and launched, accounting for 54% of the total number of satellites developed and launched throughout the year.

On November 2023, the Shanghai Municipal People's Government officially issued the "Action Plan for Promoting the Development of Commercial Aerospace in Shanghai and Building a High Ground for Space Information Industry (2023-2025)"; On May 8, 2024, the website of the Haidian District People's Government of Beijing City issued a notice on the issuance of the "Action Plan for Building a Commercial Aerospace Innovation High Ground in Haidian District (2024-2028)"; On May 9, Hubei Province launched the "Breakthrough Development Action Plan for Commercial Aerospace (2024-2028)".

Meanwhile, in 2023, China's orbital level space launches totaled 67, setting a record and accounting for 30% of the world's total launches, ranking second in the world. Private rockets launched a total of 13 times, accounting for only about 20% of China's total launch tasks. Although there is still a gap with SpaceX, under a complete industrial system, China's power has "risen into the sky". Commercial rocket launches have entered the G2 era in the private sector.

Looking ahead, Minsheng Securities pointed out that in 2024, the development of the satellite internet industry on the industrial side will have strong certainty, and the positioning opportunities after the deep adjustment of the sector are clear. In terms of domestic progress, it is recommended to focus on the deduction of terminal satellite functions, satellite bidding, network satellite launches and commercial rocket upgrades and iterations. In terms of overseas progress, it is recommended to focus on the follow-up SpaceX starship test flight, mobile phone direct connection landing process, and progress of other manufacturers except SpaceX. At the same time, it is suggested to pay attention to the catalysis of central and local policies, the formulation of industry standards, commercial rocket iterations, expansion and application of launch sites, and other related progress.