2 1 Shi Ji Jing Ji Bao Dao·2025-09-26 12:27Core Viewpoint - The recent successful launch of the sixth orbital plane of the Geely Constellation marks a significant milestone in China's satellite industry, reflecting a broader trend of rapid advancements and increased demand in the satellite communication sector [1]. Industry Developments - The satellite communication industry in China is transitioning from a phase characterized by "low volume, high cost" to one of "high demand, reduced costs," driven by multiple favorable factors [1]. - The market size for China's satellite communication is projected to exceed 80 billion yuan in 2023, with an expected annual compound growth rate of approximately 15% from 2024 to 2029, potentially reaching around 200 billion yuan by 2029 [1]. - The satellite internet market in China is anticipated to approach 100 billion yuan over the next five years, while global satellite internet market size is predicted to reach trillions by 2040 [1]. Policy and Regulatory Support - The Ministry of Industry and Information Technology (MIIT) has issued guidelines to optimize business access and promote the development of the satellite communication industry, setting a target of over 10 million satellite communication users by 2030 [3]. - The issuance of satellite mobile communication licenses to major telecom operators like China Unicom signifies a shift towards practical applications of satellite communication services [3][2]. Market Dynamics - The rapid deployment of satellite communication consumer terminals is exceeding expectations, with over 16 million units of domestic smartphones supporting direct satellite connections projected for 2024 [2][3]. - Major manufacturers such as Huawei and Xiaomi are actively developing satellite communication capabilities in their devices, indicating a growing consumer market [4]. Infrastructure Development - Significant infrastructure projects are underway, including the largest low-orbit satellite constellation plan in China, which aims to launch approximately 13,000 satellites by 2030 [5]. - The pace of satellite internet infrastructure development has accelerated, with six groups of low-orbit satellites successfully launched within a month, indicating a shift from anticipated demand to tangible growth [6]. Financial Performance and Opportunities - Companies in the upstream manufacturing sector are expected to be the first to report positive financial results as demand for satellite components increases [7]. - China Satellite (600118.SH) has shown signs of recovery, with a reduction in losses and increased delivery of satellite products, positioning it well for future growth [7][8]. - Shanghai Hanhua (300762.SZ) is projected to achieve significant revenue from low-orbit satellite-related businesses, with a high degree of revenue certainty from existing contracts [8][9]. Component Manufacturing - Tianyin Electromechanical, a leading manufacturer of satellite core components, is experiencing strong demand for its star sensors, which are critical for upcoming satellite launches [9][10]. - The profitability of Tianyin's star sensor business is notably high, with a gross margin of 31.23%, contributing to overall revenue growth for the company [9][10].