China satellite revenue grows by 38%, marking the ignition of the first year of commercial spaceflight, with explosive demand for low Earth orbit constellation networking!

Ask AI · The Year Zero of Commercial Spaceflight Has Arrived, What Is the Driving Force Behind the Explosive Demand for Low Earth Orbit Constellation Networking?

As of 13:13 on May 11, the market was strongly upward, with all three major indices rising. The Aerospace ETF (159267) increased by 0.28%, among its constituent stocks, Moxinlin rose 5.48%, Shanghai Hanxun increased 4.89%, Guorui Technology gained 2.68%, and Hait High-tech rose 2.11%. Looking at the longer term, as of May 8, 2026, Hu’an Aerospace ETF has accumulated a nearly 5.84% increase over the past two weeks.

In terms of style, the Aerospace ETF (159267) tracking index deeply focuses on commercial spaceflight. Of its 50 constituent stocks, 34 overlap with the commercial space sector (886078.TI), covering leading companies such as Guangqi Technology, Aerospace Electronics, and China Satellite, with an overlap rate of nearly 70%.

Since the beginning of this year, the Aerospace ETF (159267) has seen a share growth rate of over 180%, ranking first among the same index, continuously favored by the market and institutions, with institutional holdings accounting for nearly 60%.

On the news front, China Satellite announced that in the first quarter of 2026, it achieved operating revenue of 609 million yuan, a year-on-year increase of 37.89%; net profit attributable to shareholders of the listed company was a loss of 42.69 million yuan, compared to a loss of 24.10 million yuan in the same period last year. The performance change is due to the fact that, although operating revenue increased during this reporting period, operating costs, period expenses, and asset impairment losses increased compared to the same period last year, and the value-added tax offset recognized in other income decreased compared to the same period last year.

As the first quarter report of listed companies for 2026 is being disclosed, commercial spaceflight is no longer just a conceptual sector but a tangible growth point in performance. Although net profit remains in loss, the rapid growth in revenue reflects that the demand in the commercial space market is accelerating.

Commercial spaceflight in 2026 is standing at a historic crossroads. A valuation figure—equivalent to Australia’s annual GDP—of 1.75 trillion USD is pushing SpaceX’s planned IPO in mid-year into the spotlight of the global financial market.

During the same period domestically, China’s commercial space sector is also experiencing a strong rise in capital. China Academy of Space Technology’s STAR Market IPO application was accepted at the end of March, and private rocket companies like LandSpace are also advancing their listing processes. According to statistics, since 2026, there have been at least 34 financing events in China’s commercial space sector, doubling compared to last year, with disclosed financing amounts all in the billion-yuan range.

From the capital flow perspective, investment hotspots are highly concentrated, with satellite applications and rocket manufacturing leading in the number of financing events. State-owned investment institutions account for nearly 50%, with funds concentrating on leading enterprises.

From a technological standpoint, this year is the first year of accelerated “rocket recovery” promotion in commercial spaceflight, with many companies intensively advancing liquid rocket core stage recovery verification, supporting low Earth orbit constellation networking needs. Outside the national teams, several private companies are also conducting intensive liquid rocket recovery experiments, which may boost market sentiment.

Guojin Securities states that the aerospace industry chain shows a good development trend, with continuous technological breakthroughs in rocket manufacturing and satellite applications, driving increased demand for related materials, components, and system integration. The acceleration of commercial spaceflight, the speeding up of satellite internet construction, and the collaborative innovation across the industry chain are promoting industry expansion, with technological innovation and market application driving industry development on dual wheels.

Kaiyuan Securities notes that commercial spaceflight is ushering in an important opportunity. With new rockets about to make their maiden flights, the industry will enter a new stage of low-cost, routine launches. Focus areas include the rocket industry chain, satellite industry chain, and space computing power. Upgrades in related technologies and expanded applications will drive sustained industry development. (Note: The above information is for reference only and does not constitute investment advice. The market carries risks; invest cautiously.)

Daily Economic News