Core Viewpoint - The successful launch of 19 low Earth orbit satellites for satellite internet by China on January 19, 2023, marks a significant advancement in the country's commercial space capabilities and satellite technology [1] Group 1: Launch Details - The launch was conducted using the Long March 12 rocket at the Hainan commercial space launch site, achieving a successful mission with the satellites entering their designated orbits [1] - The Long March 12 rocket is a new generation of cryogenic liquid launch vehicle developed by the China Aerospace Science and Technology Corporation, with a near-Earth orbit carrying capacity of no less than 12 tons and a 700 km sun-synchronous orbit capacity of no less than 6 tons [1] - This launch represents the 628th mission of the Long March series of rockets [1] Group 2: Satellite Technology - The 19 satellites were developed by Galaxy Space, featuring core technologies such as phased array, millimeter-wave antennas, integrated electronics, and energy systems aimed at reducing costs [1] - The development process of this batch of satellites achieved a fully digital workflow for the first time, incorporating automated testing, intelligent assembly and inspection, and optimized launch site processes to significantly enhance efficiency [1]

Core Insights - Satellite mass production has become a key capability for the development of new space infrastructure [2][3] - The China Star Network, responsible for the first giant satellite internet project in China, aims to establish a global integrated communication system with a target of 400 satellites in orbit by 2027 [2] Group 1: Company Overview - Galaxy Space, founded in 2018, is a leading private satellite internet company in China and the first unicorn in the commercial space sector [3] - The company focuses on the independent research and low-cost mass production of communication payloads, core components, and satellite platforms [3] Group 2: Technological Advancements - The recent satellite group developed by Galaxy Space incorporates several core technologies, including phased array, millimeter-wave antennas, and integrated electronics, showcasing industry-leading technical levels and cost advantages [3] - The company has achieved a fully digital process for satellite production, implementing automated testing, intelligent assembly, and optimized launch procedures to significantly enhance production efficiency [3] Group 3: Recent Developments - On January 19, 2024, Galaxy Space successfully launched a group of 19 low-orbit satellites, marking its second batch of satellites for space infrastructure construction [2] - The company’s satellite factory has established a complete industrial ecosystem from component development to satellite integration testing, continuously improving batch production efficiency and shortening development cycles [3]

Group 1 - The successful launch of 19 low-orbit satellites by Galaxy Space using the Long March 12 rocket marks a significant achievement in China's commercial space sector, which is transitioning from a supplementary role to a strategic pillar in national space infrastructure [1] - The satellites are equipped with advanced technologies developed by Galaxy Space, including phased array antennas and integrated electronic systems, enhancing cost-effectiveness and operational efficiency [1] - The development process of these satellites has achieved a fully digital workflow, incorporating automated testing and intelligent assembly, which significantly improves production efficiency [1] Group 2 - The rapid growth of space infrastructure construction is evident, particularly in satellite broadband and mobile direct-to-satellite markets, with Galaxy Space successfully launching satellites capable of direct mobile connectivity [2] - China's commercial space sector is evolving from experimental exploration to ecological cultivation, with Galaxy Space securing numerous satellite product orders and successfully launching over 40 advanced satellites, establishing a commercial loop [2] - To seize opportunities in the new space era, Galaxy Space is committed to continuous innovation, supporting the development of a modern, self-reliant aerospace industry in China [2]

Group 1 - The deployment speed of the GW constellation has accelerated from a "bi-monthly launch" to a "weekly launch" within 13 months, with the latest batch of 19 satellites launched just 6 days after the previous group [1] - The GW constellation features a dual-layer design, with the GW-A59 sub-constellation planning for 6,080 satellites in very low Earth orbit (VLEO) below 500 km, and the GW-A2 sub-constellation planning for 6,912 satellites in low Earth orbit (LEO) at 1,145 km [1] - The satellites are developed by Galaxy Space, which has independently undertaken the development of two groups of such space infrastructure satellites, utilizing advanced technologies such as phased array antennas and digital full-process integration for cost-effective production [1] Group 2 - The recent launch is the second mission from the Hainan commercial space launch site in 2026 and marks the 12th successful launch from this site [2] - A new command team was introduced for this mission, including five new commanders, with the chief commander being a post-90s individual, marking a first for the Hainan commercial launch company [2] - The team implemented a "status confirmation system" to optimize task processes and improve work efficiency, accommodating the high-frequency networking demands of the SF-13 mission [2]

Group 1 - The successful launch of 19 low-orbit satellites by the company Galaxy Space using the Long March 12 rocket marks a significant achievement in China's commercial space sector [1] - The satellites are equipped with core technologies developed by Galaxy Space, including phased array antennas and millimeter-wave technology, showcasing advancements in digital and automated production processes [3] - The company has successfully launched over 40 satellites, establishing a commercial closed loop and indicating a shift from experimental exploration to ecosystem cultivation in China's commercial space industry [3] Group 2 - The rapid growth of space infrastructure construction is highlighted, with increasing demand for satellite broadband and direct satellite connectivity for mobile phones [3] - Galaxy Space has developed a complete industrial ecosystem for satellite production, including components research, manufacturing, and integration testing, positioning itself for future growth in the space infrastructure market [3] - The company is actively pursuing technological innovation to embrace the upcoming 6G era, having successfully tested satellites with direct mobile connectivity capabilities [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's traditional business fundamentals are stable, while its satellite and automotive sectors are expected to create new growth curves [3] - The company has achieved breakthroughs in commercial satellite communication products and is expected to begin mass supply to North American customers in the second half of 2025 [3] - The automotive sector is seeing increased collaboration with major domestic and international manufacturers, with a growing product matrix that includes wireless charging modules and advanced radar systems [3] - The company is projected to benefit from a recovery in the consumer electronics industry and has established a solid business foundation in traditional sectors [10] Financial Projections - Total revenue is forecasted to reach 97.05 billion yuan in 2025, with a net profit of 7.29 billion yuan, and corresponding P/E ratios of 34, 31, and 26 for the years 2025 to 2027 [10] - Revenue is expected to grow at a compound annual growth rate (CAGR) of 15.85% from 2024 to 2025, with net profit growth rates of 26.89% for the same period [10] - The company anticipates significant contributions from its automotive sector over the next 2-3 years, supporting overall growth [3]

Group 1: Satellite Communication Products - The company has developed satellite communication products covering "star-ground-end" applications, including ground station terminals, satellite communication payloads, and terminal applications [2] - Key products include satellite active phased array antennas supporting Ka and Ku bands, and mobile satellite antennas for trains and ships [2] - The company has made strategic investments totaling 30 million CNY in core satellite component companies and established a 50 million CNY space industry fund [3] Group 2: Microwave Antenna Business - The microwave antenna business has seen a revenue increase of 84% year-on-year, with a gross margin of 33%, accounting for 22% of total revenue [3] - The growth is driven by the demand for wireless transmission in underdeveloped overseas regions, complementing fiber optic communication [3] Group 3: Optical Modules - The company’s 800G optical modules have achieved small-scale shipments, while the 1.6T optical module is in early-stage development [4] - Continuous monitoring of industry trends is emphasized to promote product development and commercialization [4] Group 4: Millimeter Wave Antennas - Millimeter wave antennas are being tested for high-speed communication between data centers, with potential to replace fiber optics and reduce deployment costs by 30% [5] - The company has completed laboratory validation of its 28GHz product and is conducting joint tests with leading operators, holding 12 related patents [5]

Core Viewpoint - The company has made advancements in millimeter-wave antenna technology for short-range communication in data centers, which could significantly reduce deployment costs by replacing fiber optics [1] Group 1 - The company has completed laboratory validation of multi-frequency products and is currently conducting joint tests with leading operators [1] - The technology leverages 5G beamforming technology, and the company has applied for multiple related patents [1] - Investors are encouraged to follow the company's announcements for specific progress updates [1]

Core Insights - The company reported a revenue of 3.703 billion yuan for the first half of 2025, a year-on-year decrease of 1.15%, and a net profit attributable to shareholders of 162 million yuan, down 20.18% [1] - Despite the overall decline in the first half, the second quarter showed strong performance with a revenue of 1.96 billion yuan, a year-on-year increase of 3.82%, and a net profit of 84.34 million yuan, significantly up by 65.12% [1] - The company is transitioning from a consumer electronics-focused business model to a diversified strategy that includes satellite communication and smart automotive sectors [2] Financial Performance - The first half of 2025 saw a revenue of 3.703 billion yuan, down 1.15% year-on-year [1] - The net profit attributable to shareholders for the same period was 162 million yuan, reflecting a decline of 20.18% [1] - In Q2 2025, the company achieved a revenue of 1.96 billion yuan, marking a 3.82% increase year-on-year, and a net profit of 84.34 million yuan, which is a 65.12% increase [1] Business Segments - The antenna business continues to maintain a leading position in the industry, while the wireless charging segment benefits from increased demand in smartphones, wearables, and smart vehicles [1] - The precision structural components business has seen stable growth due to new model introductions and increased orders from major clients [1] - The company has strengthened its global presence with production bases in Vietnam and Mexico, laying the groundwork for future business expansion [1] Emerging Business Areas - Significant breakthroughs have been made in emerging business areas, including successful applications of LCP modules and millimeter-wave antennas in North American markets, as well as expansion into smart automotive and commercial satellite communication sectors [2] - The UWB module is widely used in smart automotive keys and IoT devices, with plans to extend into humanoid robots [2] - The company has over 60 patents in high-end MLCC products, which have passed customer testing and entered mass production, with expectations to capture a larger market share in smart automotive and AI server sectors [2] Future Growth Drivers - Commercial satellite communication and smart automotive sectors are identified as key growth engines for the company [2] - The company has added North American clients in the satellite communication field and anticipates bulk supply in the second half of the year while also expanding into the domestic market [2] - Collaborations with major domestic and international OEMs and Tier 1 suppliers in the smart automotive sector are expected to drive performance growth in the next 2-3 years [2]