Commercial Space Giants Rush to Go Public as A-Share Concept Stocks Exposed

Space launch missions are accelerating noticeably.

Commercial space giants rush to the capital market

According to Jiemian News on March 25, the commercial space giant SpaceX plans to secretly submit its initial public offering prospectus to regulators later this week or next week, aiming to go public in June.

This IPO is highly anticipated and could set multiple records. Advisors involved in the preparation estimate that SpaceX’s fundraising target has been increased to over $75 billion, surpassing Saudi Aramco’s 2019 record to become the largest IPO in history. The company’s latest valuation has reached $1.25 trillion, and if successful, it will immediately rank among the world’s most valuable companies.

Industry insiders point out that the high valuation of SpaceX is supported by the strong cash flow from the Starlink satellite internet business and its absolute dominance in the global commercial launch market. Elon Musk previously provided a revenue guidance of about $15.5 billion for 2025, and the market generally views “Starlink” as the core source of cash flow. Notably, SpaceX recently completed a merger with AI company xAI, and the market widely believes that this massive financing aims to fund cutting-edge projects like the “Space AI Data Center,” further consolidating its leadership in the space economy.

A-shares Concept Stocks Revealed

Dongwu Securities previously released a research report mentioning a list of targets with confirmed supply relationships to SpaceX.

Tongyu Communications: The company’s MacroWiFi products have integrated SpaceX interfaces to enable satellite direct internet connectivity, completed certification testing, and received small batch orders and deliveries. As low-orbit terminals expand from specialized to general use, the company’s engineering delivery capabilities will lead to increased product volume.

XWITech: Since 2022, the company has been supplying parts of satellite ground terminal components to SpaceX, acting as the exclusive supplier for related products, which are aimed at Starlink ground terminal chains.

ZaiSheng Technology: Since 2020, the company has supplied high-silica fiber products to SpaceX, with the most recent traceable delivery record in September 2024. High-silica fibers are mainly used for thermal insulation and ablative composite layers in spacecraft heat shields, nozzles, engine compartments, etc. They are lightweight, low thermal conductivity, and heat-resistant, directly affecting the reliability and maintenance costs of reusable spacecraft thermal protection.

In addition to verified suppliers, Dongwu Securities believes that the following companies also have potential to become key component suppliers for SpaceX and commercial space, including Western Materials, Parker New Materials, Tianyin Electromechanical, Polyture, Baotai Shares, Sreer New Materials, Chaojie Shares, Jintuo Shares, Blue Lithium Core, Maiwei Shares, Junda Shares, Constr, among others.

Recent stock prices of related companies have also shown significant movements. ZaiSheng Technology hit the daily limit yesterday and again during today’s trading; Western Materials surged over 8% in early trading today.

It is worth noting that in recent announcements of stock price movements, ZaiSheng Technology stated that since 2020, it has directly supplied “high-silica fiber products” to a well-known international space company. In 2024, this product accounted for a very small proportion of the company’s total revenue and has no significant impact on performance. Currently, there are no orders on hand for “high-silica fiber products,” and future order acquisition is uncertain.

High Drawdowns in These Concept Stocks

China’s commercial space industry is also accelerating. A research report from Industrial Securities pointed out that aerospace has been included in the “14th Five-Year Plan” as a strategic emerging industry, with a focus on commercial space and domestically produced large aircraft. Meanwhile, space launch missions are clearly speeding up.

From March 13 to 16, China completed five major space missions: Long March 8A launched from Hainan’s commercial space launch site, sending 20 Starlink low-earth orbit satellites into their designated orbits; Long March 2D launched from Xichang Satellite Launch Center, deploying satellites 03 and 04 of the “Test 30” series; Long March 6C launched from Taiyuan Satellite Launch Center, deploying the Remote Sensing Satellite No. 50-02; Kuaizhou 11 solid rocket successfully launched 8 satellites from Jiuquan Satellite Launch Center. Prior to this, the last domestic space launch was the Jielong 3 rocket on February 12.

In the A-share market, concept stocks related to commercial space have generally experienced significant declines. Data shows that up to 46 concept stocks have fallen more than 30% from their recent one-year highs. Among them, Aerospace Hongtu has fallen nearly 59%, leading the decline, with Chenxi Aerospace, Shaanxi Huada, Tongyu Communications, and others dropping over 45%.

Among the high-decline stocks, Chaojie Shares was surveyed 39 times in the past year. In recent surveys, the company stated that the commercial space business is broad, mainly manufacturing structural components for commercial rockets, including large sections of the rocket body (shell segments), fairings, etc. Additionally, Srichuang Electronics and Sreer New Materials have also been frequently surveyed.

Sreer New Materials noted in late last year’s survey that its liquid rocket engine thrust chamber is a critical component, where high-temperature, high-pressure gases produced by propellant combustion rapidly expand in the thrust chamber and are expelled through the rocket nozzle, generating thrust in the opposite direction.