Core Viewpoint - The company, Haige Communication, is actively involved in the satellite communication sector, positioning itself as a leading supplier in the ground terminal market and has established a comprehensive layout across the entire industry chain, including chips, terminals, gateway stations, and system operations [1] Group 1: Industry Involvement - The company is deeply engaged in the Tiantong satellite communication system and the new generation satellite communication system, which are significant projects under the national satellite internet initiative [1] - The company has become a mainstream supplier and advantageous enterprise in the special institution market for ground terminals [1] Group 2: Technological Advancements - The company has increased its investment in chip research and development, successfully developing RF and baseband chips that have passed user verification, making it a key supplier of critical chips for satellite internet [1] - The Tiantong chip has been applied to numerous mainstream mobile phone manufacturers, and the company is actively expanding into the "automobile direct connection" market through partnerships with well-known domestic automotive manufacturers [1] Group 3: Product Development and Testing - The company has won bids for user productized narrowband data terminals and narrowband handheld terminals, with several communication and navigation enhancement terminals having passed in-orbit testing verification, and some terminals have been delivered for user trials [1] - The company has completed the construction of a certain gateway station and the deployment and trial operation of an air interface automation testing system, which will strongly support the data landing and system operation management of low-orbit satellites [1] Group 4: Market Expansion - The company is actively exploring new fields in the space segment, leveraging its existing technology and market advantages to expand into the satellite communication payload sector, aiming to open up new markets and profit growth points [1]

Group 1 - The company, Shanghai Hanxun, is responsible for the G60 constellation communication subsystem, which includes the development and delivery of satellite communication payloads, as well as providing ground stations and satellite communication terminals [1] - The company is actively monitoring collaboration opportunities within the commercial aerospace industry [1] - Specific customer and project information will be disclosed in the company's regular reports and announcements [1]

Group 1 - Blue Origin's "New Glenn" rocket successfully launched for the second time on November 13, 2023, marking the first successful sea recovery of its first stage, making Blue Origin the second company globally, after SpaceX, to master orbital rocket recovery technology [1] - China's Shenzhou-20 successfully returned on November 14, 2023, with multiple reusable rocket plans set for upcoming test flights and recoveries, including the Zhuque-3 rocket expected to launch in mid to late November [1] - The successful launches of commercial rockets are anticipated to address key bottlenecks in China's satellite constellation networking, including capacity, launch costs, and launch sites, thereby accelerating the development of two major satellite constellations [1] Group 2 - Shanghai Hanxun is a core research and development unit for the communication subsystem of the Qianfan satellite constellation and is responsible for providing key satellite communication equipment, including communication payloads and ground stations [2] - Zhenlei Technology is a core supplier of chips and components for satellite internet, with a comprehensive product range and collaborations with various research institutions and leading companies in the industry [2]

Investment Rating - The investment rating for the company is "Increase-A" with a downward adjustment [1][8]. Core Viewpoints - The company's satellite revenue is objectively affected by the launch rhythm, while the special communication business is expected to see a substantial turning point [3][4]. - The company achieved a revenue of 173 million yuan in H1 2025, representing a year-on-year increase of 63.34%, and a net profit attributable to shareholders of -29 million yuan, up 44.97% year-on-year [3][4]. - The company is a key research and development unit for low-orbit satellite communication subsystems, with core capabilities in phased array antenna development and satellite payload research [5][7]. Financial Performance - The company is projected to achieve net profits of 23 million yuan, 120 million yuan, and 183 million yuan for the years 2025, 2026, and 2027 respectively [8]. - The revenue forecast for 2025 is 547 million yuan, with a year-on-year growth of 54.7% [10]. - The gross profit margin is expected to be 49.1% in 2025, with a net profit margin of 4.2% [10][11]. Market Dynamics - The company is positioned to benefit from the increasing demand for satellite communication, with the Ministry of Industry and Information Technology's guidance expected to accelerate industry development [5][6]. - The establishment of the Information Support Force in April 2024 marks a new phase in national defense informatization, which will drive upgrades in military communication systems [6][7]. Project Progress - The company has made significant progress in various projects, including winning bids for a 5G self-organizing network project and developing communication equipment for unmanned platforms [7]. - The company is expected to see a recovery in the military industry as new equipment is showcased, with a potential increase in defense budget utilization [7][8].

Core Viewpoint - Guangdong Province has released a set of 21 specific policy measures aimed at promoting the high-quality development of the commercial aerospace industry from 2025 to 2028, focusing on infrastructure, innovation, market cultivation, and financing mechanisms [1][3]. Group 1: Infrastructure Development - Support for satellite constellation construction, including a "green channel" for project approval and coordination of satellite frequency resources [1][4]. - Financial support for ground station network construction, with a 10% funding support based on total investment, capped at 2 million yuan per station and 10 million yuan per enterprise annually [1][4]. Group 2: Innovation Enhancement - Encouragement for enterprises to focus on key technologies such as reusable liquid rocket engines and low-cost satellites, with provincial funding support of up to 50% for qualifying projects [2][4]. - Implementation of a tax deduction policy for R&D expenditures, allowing 100% pre-tax deductions [2][4]. Group 3: Market Cultivation - Implementation of a tiered cultivation plan for enterprises, supporting applications for national high-tech enterprise status and tax reduction policies [2][7]. - Financial rewards for enterprises recognized as national manufacturing champions or specialized "little giants" [2][7]. Group 4: Financing Mechanisms - Increased financial support for major commercial aerospace projects, including the use of long-term special bonds and local government bonds [9][10]. - Establishment of specialized funds to support cutting-edge aerospace technology and major project development [9][10]. Group 5: Talent Support - Recruitment of leading talents in the commercial aerospace sector, with support for high-level talents to enjoy local resident benefits [10][11]. - Promotion of applied talent training through partnerships between enterprises and educational institutions, including the establishment of training bases [10][11].

Core Viewpoint - The commercial aerospace sector is experiencing a surge in stock prices, driven by recent successful satellite launches and a clear growth trajectory in the industry [4][5]. Group 1: Regulatory Issues - Hengxin Oriental (300081) has been placed under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, leading to a significant drop in its stock price by nearly 19% [2]. - The company acknowledged accounting errors in its 2022 annual report and stated that it would cooperate with the CSRC during the investigation [2][3]. Group 2: Commercial Aerospace Growth - The commercial aerospace sector has seen a wave of stock price increases, with multiple companies reaching their daily price limits [4]. - Recent successful satellite launches, including the Long March 12 rocket, have accelerated the development of the satellite internet industry, with significant contracts for future launches [4]. - The average increase in commercial aerospace concept stocks has been nearly 35% this year, outperforming the Shanghai Composite Index [5]. Group 3: High-Growth Stocks - Over 60 stocks in the A-share market are related to commercial aerospace, with five stocks showing cumulative gains exceeding 100% [5]. - Companies like *ST Chengchang (001270) and Zongshen Power (001696) are projected to have net profit growth rates exceeding 20% in the coming years, with some expected to exceed 30% [5]. - Shanghai Huanxun (300762) is a key supplier for satellite communication systems, indicating its involvement in the growing satellite communication market [6].

Core Insights - The report highlights the emerging opportunities in the low Earth orbit (LEO) satellite communication sector, particularly following the MWC 2025 event in Shanghai, which showcased advancements in ground infrastructure for satellite internet [5][6] - The report emphasizes the maturation of the NTN (Non-Terrestrial Network) industry chain and the expected acceleration in ground infrastructure development, driven by upcoming commercial trials of LEO satellite systems [5][6] Industry Commentary: Communication - The MWC 2025 event has spotlighted the LEO satellite internet, presenting at least three catalysts for investment opportunities in this sector [5] - The next-generation LEO constellation design is nearing maturity, with domestic projects like Qianfan, State Grid, Hongyan, and Tianqi starting to form, indicating a shift towards a mainstream NTN network architecture [5] - Major players in the 5G equipment sector, such as Huawei, ZTE, and FiberHome, are expected to benefit significantly from this transition, particularly in baseband, routing, and antenna technologies [5] - The report notes that the upcoming commercial trials of LEO satellite systems will likely lead to increased demand for ground infrastructure, including gateway station projects and related components [5][6] Investment Highlights - The AMD Helios cabinet design is set to compete with the Rubin NVL144 supernode cabinet, indicating a trend towards higher bandwidth and more efficient networking solutions [6] - The Mi400 Helios cabinet is expected to integrate 72 Mi400 GPUs, requiring extensive copper cabling and high-density connectors, which suggests a sustained demand for high-speed copper and optical modules in the coming years [6] Market Overview - The report provides a snapshot of the market performance, noting that the overall market saw mixed results, with the Shenwan Communication Index rising by 1.58% while major indices like the Shanghai Composite Index and Shenzhen Component Index experienced declines [8] - Specific sectors such as optical modules and optical cables saw significant weekly gains, indicating strong investor interest in these areas [8] Regulatory Developments: Non-Bank Financial Sector - The report discusses the introduction of the "1+6" policy measures for the Sci-Tech Innovation Board, aimed at optimizing the classification and evaluation of securities firms, which is expected to enhance the financial service ecosystem for technology innovation [9][10] - The new regulations are designed to support high-quality development and encourage differentiated operations among securities firms, fostering a competitive landscape [10]

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].

Group 1 - The commercial aerospace innovation company, Orbit Chuangguang, has completed its first and additional round of financing totaling 140 million RMB [1] - The additional round was exclusively invested by Shunhao Co., Ltd. with 110 million RMB, while the first round included 20 million RMB from Lenovo Venture Capital's Lenovo SME Fund and 10 million RMB from team co-investment [1] - Orbit Chuangguang focuses on the "926 Project," which involves the construction and operation of a giant computing satellite constellation [1] Group 2 - The financing will support the company's advancement in commercial aerospace technology research and satellite constellation deployment, enhancing its competitiveness in the aerospace field [1] - The Chinese commercial aerospace industry is at a dual inflection point of "technological breakthroughs" and "scale explosion," with significant progress in reusable rockets, satellite internet, and laser communication terminals [1] - The market demand for satellite communication, remote sensing, and navigation applications is accelerating, with low-orbit constellation networking driving growth in satellite manufacturing and ground terminal sectors [1] Group 3 - The Chinese government has prioritized commercial aerospace as a key emerging industry, accelerating the construction of satellite internet constellations [1] - By 2025, China plans to launch 700-800 low-orbit satellites, representing an increase of over 10 times compared to 2024 [1] - The market size for the commercial aerospace industry is expected to exceed 2.8 trillion RMB this year [1] Group 4 - Shanghai Hanxun is a supplier of communication subsystems for the Qianfan constellation and a core research unit for the G60 constellation payload, responsible for the communication subsystem's support and development [2] - Shaanxi Huada has three major product categories applied in the commercial aerospace field, holding a leading position in the industry and contributing to the successful implementation of national key aerospace projects like Xingwang and Qianfan constellations [2]

Core Viewpoint - The acceleration of GW and G60 satellite constellations will continuously release demand for ground stations, benefiting not only hardware providers but also satellite control services, indicating a rapid development phase for the industry [1]. Group 1: Industry Overview - The domestic low Earth orbit (LEO) satellite constellation is accelerating, leading to an increase in the prosperity of the ground station industry, which is rated as "overweight" [1]. - The integration of space and ground is a typical feature of 6G communication, with ground stations playing a crucial role in data landing, protocol conversion, and network management [1]. - The construction of 28,000 LEO satellites will create substantial demand for ground stations, making the pace and scale of ground station construction a key indicator of the commercialization process of satellite constellations [1]. Group 2: Market Dynamics - A complete ground network is essential for the commercial success of satellite constellations, as demonstrated by SpaceX's Starlink program, which synchronizes its network construction with hundreds of ground stations [2]. - The launch of the first batch of ground station antenna systems for the G60 constellation in March 2025, with a total value of several hundred million yuan, marks a significant step in China's LEO satellite internet construction [2]. - The emergence of the "Ground Station as a Service" (GSaaS) model is driven by cost pressures and the pursuit of efficiency, allowing third-party companies to invest in and operate ground stations, thus reducing overall industry construction costs [2]. Group 3: Investment Recommendations - Companies that are deeply involved in the early-stage verification and standard-setting of GW and G60 constellations, have secured core orders in bidding, possess integrated delivery capabilities, and are forward-looking in GSaaS operations are expected to benefit significantly from the current industry trends [3]. - These companies are likely to build a "technology + customer" moat, continuously delivering performance amid the upcoming order release trend and benefiting from both industry explosion and structural optimization [3].