Summary of Commercial Aerospace Conference Call Industry Overview - The conference call focused on the **commercial aerospace industry** and its recent developments, highlighting three significant turning points: policy, performance, and technology [1][2][3]. Key Points Policy Turning Point - The establishment of a dedicated bureau for commercial aerospace indicates the government's commitment to the industry, aiming to address challenges in **rocket reusability technology** and integrate advantages from the information and communication sectors [1][4][5]. - The government plans to introduce major companies like **Huawei** and **ZTE** to enhance satellite internet development towards **6G**, leveraging existing mobile communication industry strengths [3][6]. Performance Turning Point - Since August 2025, there has been a significant increase in **launch frequency** due to large-scale new project tenders, with companies like **Chen Chang** and **Zheng Lei** showing marked improvement in their performance during the first three quarters of the year [1][4]. - The commercial aerospace sector has outperformed the broader market, driven by the establishment of new companies and increased launch activities [2][10]. Technology Turning Point - The domestic liquid engine technology for **reusable rockets** is maturing, with breakthroughs expected in the first half of 2026. The industry is adopting a collaborative approach, involving multiple companies to tackle the challenges of rocket reusability [1][4][5][18]. - The **NTN (Non-Terrestrial Network)** system is crucial for the future of satellite internet, with China positioned to develop this system effectively due to its advanced **5G network** and clear **6G roadmap** [3][7]. Additional Insights - The commercial aerospace sector is viewed as a long-term investment opportunity rather than a short-term theme, with significant catalysts expected from the upcoming launches of reusable rockets and the establishment of new companies [10][15]. - The **ground terminal segment** is identified as the most valuable market within the commercial aerospace industry, with significant growth potential as user numbers and application scenarios increase [20]. - The **Shanghai Songjiang Satellite Internet Ecological Conference** revealed plans for over **7,000 satellites** and **500 rocket launches** in the next five years, indicating strong confidence in the industry's future [19]. Investment Recommendations - Investors are advised to focus on companies involved in the **rocket launch supply chain**, **satellite manufacturing**, and **ground terminal development**. Specific attention should be given to the upcoming test flights of new reusable rockets and the results of ground terminal tenders [21][22].

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the telecommunications industry [1]. Core Insights - The NTN (Non-Terrestrial Network) industry chain is maturing rapidly, with ground infrastructure poised for significant development. The MWC Shanghai 2025 highlighted satellite internet as a key focus, presenting at least three catalysts and investment opportunities for the sector [2][15]. - The next-generation low Earth orbit (LEO) constellation design is nearly mature, with domestic projects like Qianfan, State Grid, Hongyan, and Tianqi starting to form. The NTN architecture is becoming mainstream, benefiting major 5G equipment manufacturers such as Huawei, ZTE, and others [3][16]. - As the trial commercial use of low Earth orbit constellations approaches, ground infrastructure will see accelerated growth. The low Earth satellite communication system in China is expected to enter public testing this year, with consumer-level satellite networking anticipated in the second half of the year [4][17]. Summary by Sections 1. Weekly Viewpoint and Investment Suggestions - The NTN industry is expected to benefit from the upcoming commercial trials of low Earth orbit satellites, with significant opportunities in ground infrastructure and satellite payloads [15][17]. - Key companies to watch include: - Low Earth Satellite Payload: Xinke Mobile, Fenghuo Communication, ZTE, Tongyu Communication, Jingxin Communication, and others [20]. - Low Earth Ground Infrastructure: Changjiang Communication, Zhenyou Technology, Xinke Mobile, China Tower, and others [20]. - Super Node Communication: Zhongji Xuchuang, Xinyi Sheng, Wolong Nuclear Materials, and others [20]. 2. Market Overview - The telecommunications index rose by 1.58% during the week of June 16-20, 2025, while major indices like the Shanghai Composite Index and Shenzhen Component Index saw declines [8][18]. - The top-performing sectors included optical modules (+9.6%), optical cables (+8.2%), and liquid cooling (+3.8%) [8][18]. 3. Company Performance - Notable stock performances included Longfly Fiber (+15.10%), Yuanjie Technology (+12.06%), and others leading in gains, while Zhenyou Technology and others faced significant declines [34][36].