Investment Rating - The report maintains an "Outperform" rating for the industry [1]. Core Insights - The global satellite internet construction is accelerating, with Starlink leading the industry. By June 2025, Starlink has launched nearly 9,000 satellites, serving over 5 million users across more than 100 countries. The project is expected to generate over $8 billion in revenue in 2024 and potentially exceed $11 billion in 2025 [2][20]. - China's satellite internet is entering a rapid development phase, with plans for three satellite constellations. Recent leadership changes in satellite internet companies indicate a push for technological breakthroughs and business model innovations [2][3]. Summary by Sections 1. Global Satellite Internet Acceleration - By June 2025, Starlink has launched nearly 9,000 satellites, with a user base surpassing 5 million and revenue projections of over $8 billion in 2024 and $11 billion in 2025 [2][20]. - China's satellite internet has initiated the deployment of multiple satellite constellations, with significant advancements in satellite launches and leadership changes in key companies [2][3]. 2. Business Models: Direct-to-Cell and Laser Communication - The Direct-to-Cell (DTC) model is set for large-scale application, with China Telecom planning to promote satellite direct connection services extensively by 2024. By May 2025, over 30 direct connection models are expected to be released, with annual sales projected to exceed 16 million units [3]. - Laser communication technology is anticipated to become a standard in satellite internet, with significant advancements already demonstrated by private companies in China [3]. 3. Rocket Breakthroughs - China's private rocket companies are rapidly iterating technologies, with notable advancements in reusable rockets and liquid propulsion systems. For instance, Blue Arrow Aerospace's "Zhuque-3" rocket is designed to match SpaceX's Falcon 9 in payload capacity [4]. 4. Investment Recommendations - The commercial space sector in China is poised for rapid growth, with the satellite internet market expected to reach nearly 100 billion yuan in the next five years. The private rocket market is projected to exceed 30 billion yuan [4]. Key companies to watch include those in the private rocket supply chain and satellite internet communication payload suppliers [4].

Core Insights - The construction of space infrastructure is emerging as a new engine for global economic growth, with over 300 high-tech enterprises in the commercial aerospace sector located in Beijing, forming an initial "South Arrow North Star" pattern [1][8] - Galaxy Aerospace, a unicorn in Beijing's commercial aerospace sector, has successfully launched 25 advanced satellites, contributing to China's space infrastructure development [1][2] Communication - Galaxy Aerospace has launched two experimental satellites capable of direct mobile connectivity, marking a significant step in satellite communication technology [2][3] - The global space economy is projected to reach a value of $1 trillion by 2040, with the broader economic and social value of space estimated at approximately $7.9 trillion [2] Remote Sensing - Galaxy Aerospace has developed the world's first multi-satellite formation SAR (Synthetic Aperture Radar) satellite, enhancing capabilities for high-precision digital surface modeling and global mapping tasks [4][5] - The successful launch of four InSAR satellites in March 2023 represents a breakthrough from theoretical research to engineering realization in multi-satellite interferometry [4][5] Satellite Technology - The "1+3" formation of SAR satellites allows for effective measurement of ground targets from various angles, achieving millimeter-level precision in mapping [5] - Galaxy Aerospace is integrating AI capabilities into future SAR satellite projects to reduce ground control pressure and enhance data processing efficiency [5] Innovations in Satellite Design - The Lingxi 03 satellite, featuring a unique flat design and flexible solar wings, was successfully launched, demonstrating advancements in compact satellite deployment and cost reduction [6][7] - The flexible solar wings allow for efficient energy absorption and are suitable for mass production, significantly contributing to the acceleration of satellite internet construction [7] Industry Landscape - Beijing is the birthplace of China's aerospace industry, housing over 50% of the core R&D units and a complete industrial chain in commercial aerospace, including rocket manufacturing and satellite services [8][9] - The city has set records in rocket launches and satellite constellation planning, with significant contributions from companies like Galaxy Aerospace [9] Future Outlook - Beijing plans to accelerate the development of reusable rocket technology and heavy-lift rockets, aiming for breakthroughs in satellite core components and large-scale constellation construction [10][11] - The city will enhance procurement of commercial satellite services for emergency response and resource monitoring, promoting applications in smart cities and autonomous driving [11]