Commercial spaceflight companies perform remarkably well! The Aerospace ETF Tianhong (159241) subscribed for over 10 million shares yesterday, with a valuation below 70% of the time in the past year.

The Paper’s editor: Xiao Ruidong

On March 26, both markets opened lower and then trended down, with the aerospace and aviation concept falling. For the related ETFs, the Tianhong Aerospace and Aviation ETF (159241) benchmark index closed down 1.97%, with subscription volume reaching 12 million shares. Trading value amounted to RMB 101 million. Turnover rate was 10.89%, the top among funds in the same category. Among constituent stocks, Inner Mongolia First Machinery, Construction Industry, fell by more than 5%, while several others such as Naurui Radar, Great Wall Defense Industry, and Guoke Defense Industry also declined.

The Tianhong Aerospace and Aviation ETF (159241) recently accumulated net inflows of capital of RMB 113 million over the past 30 trading days. As of March 25, 2026, the fund’s latest size was RMB 943 million.

The Tianhong Aerospace and Aviation ETF (159241) closely tracks the CSRC Aerospace Index. Over the past year, the index has risen by 27.97%. Its sector allocation mainly includes Aerospace Equipment II (55.27%), Defense Electronics II (20.32%), and Space Equipment II (12.88%), among others. The top five constituent stocks are AECC Aero-Engine, iQiyu Technology, Aerospace Electronics, China Satellite, and AVIC Shenyang Aircraft.

The CSRC Aerospace Index currently has a PE-TTM of 129.95x. Its valuation sits at the 29.75th percentile in history, indicating that the index’s current price is significantly below the time 70.25% of the past year. The current valuation level is relatively moderate and offers some value for attention.

On the news front, the aerospace and aviation sector today has been driven by multiple positive catalysts. ① According to Bloomberg, SpaceX plans to file an IPO application by the end of this month, with a fundraising size possibly reaching USD 75 billion, which would become the largest IPO in history. This move has drawn attention across the global commercial space industry chain. ② In the 2026 government work report, aerospace and aviation were first established as an “emerging pillar industry,” and it also clearly proposed accelerating the development of satellite internet, providing clear policy support for the sector. ③ At the industry level, commercial space companies have shown strong performance. In 2025, Star Map Measurement and Control’s revenue from its commercial space business grew year over year by 62%; the revenue growth rate of related products for Zhimingda reached 199%. The industry’s high level of prosperity has been validated. ④ In the aviation sub-sector, domestic route fuel surcharges will be increased starting April 5, which will help airlines ease fuel cost pressure.

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