Jovo Energy(SH:605090) Soochow Securities·2026-01-22 03:24Investment Rating - The report maintains a "Buy" rating for Jiufeng Energy, highlighting its potential in the commercial aerospace sector [1]. Core Insights - The commercial aerospace industry is transitioning into a phase of scaled launches, with supply capabilities continuously being released. This shift is characterized by an increase in launch frequency and demand for launch services [9]. - The cost structure of launches is evolving, with a clear path towards cost reduction through high payload capacity and reusability of rockets. The unit launch cost in China is expected to decrease significantly from approximately 115,000 RMB per kilogram in 2020 to around 45,000 RMB per kilogram by 2029 [28]. - The demand for propellants and special gases is becoming increasingly rigid, with their value and share in the overall cost structure expected to rise over time. Liquid oxygen and methane are emerging as preferred propellant choices due to their advantages in reusability and operational efficiency [37][39]. Summary by Sections 1. Industry Trends - The commercial aerospace sector is moving from a capability-building phase to a scaled launch phase, driven by the acceleration of low Earth orbit satellite constellation construction [9]. - China's launch infrastructure has developed a comprehensive system, including multiple inland and coastal launch sites, enhancing overall launch capacity [10]. 2. Cost Structure and Reduction Pathways - The cost structure of launches is being dissected, revealing that consumable elements like propellants are becoming more significant as launch frequencies increase. The rigid nature of these costs is highlighted as a core constraint in the industry [17][19]. - The unit cost of launching satellites is a critical economic indicator, with current costs in China being higher than those of international competitors like SpaceX. The report indicates that the unit launch cost for the Falcon 9 has decreased to approximately 20,000 RMB per kilogram [23][25]. 3. Propellant and Special Gas Demand - The report emphasizes the increasing importance of propellant selection in the context of reusability and operational stability. Liquid oxygen and methane are positioned as the leading choices for future rocket designs due to their cleaner combustion and lower maintenance requirements [39][41]. - Jiufeng Energy is recommended for its strategic positioning in the supply of special gases and propellants, which are expected to see long-term growth in value and market share [1][37].