Huaxi: Commercial spaceflight is transitioning to a reusable cost model, and domestic enterprises are showing a systematic catching-up trend.

Huaxi released a research report stating that commercial spaceflight is undergoing a transformation from one-time manufacturing to reusable cost model. Chinese commercial space companies are accelerating technological breakthroughs and cost optimization, making positive progress in independent model research and large-scale application, showing a systematic catching-up trend. Launch service providers directly generate cash revenue from single launch costs and high frequency tasks. The higher the launch frequency and the larger the contract amount, the more significant the profit elasticity in the launch process, benefiting from core reusable components and high frequency replacement components. Key points from Huaxi include: Restructuring of commercial space costs: transitioning from one-time manufacturing to a reusable cost model The global commercial space launch sector is undergoing a profound cost restructuring. In terms of cost structure, traditional rockets are mainly based on one-time hardware manufacturing, accounting for about 67%, while emerging commercial rockets reduce hardware costs to around 24% through reusable design, forming a sustainable model of "reusing to reduce costs". Specifically, regarding the costs of rockets, boosters account for 60% of total costs, the second stage accounts for 20%, the fairing accounts for 10%, and the launch operation itself accounts for 10%. Looking at the cost evolution trend, domestic and foreign commercial space companies are advancing cost optimization based on different development paths. Companies like SpaceX, through over a decade of technological accumulation, have developed a continuous optimization model of "increased reuse - increased launch frequency - decreased unit cost". At the same time, Chinese commercial space companies are accelerating technological breakthroughs and cost optimization, making positive progress in independent model research and large-scale application, showing a systematic catching-up trend. Global launch volume directly benefits launch service providers and whole rocket manufacturers, with core reusable components and high frequency replacement parts indirectly benefiting Launch service providers directly generate cash revenue from single launch costs and high frequency tasks, with the profit elasticity of the launch process becoming more significant with higher launch frequencies and larger contract amounts. Against the backdrop of increased launch demand, launch services and whole rocket deliveries as direct revenue-generating aspects are directly linked to the number of launch missions and benefit directly from increased launch volume. In addition, high-value components such as boosters and fairings are repeatedly reused, leading to higher reliability and maintenance requirements for reusable components such as engines, primary structures, and control systems, driving demand for related components and maintenance services. The launch market will exhibit an oligopoly structure in 2024-2025, with monopolies granting downstream control of the supply chain Both the global and Chinese space launch markets are showing signs of monopolization. Launch service providers are exploiting their recent order dominance to intervene in the production layout of the upstream supply chain. Downstream giants control pricing, which may force upstream companies to cooperate in their supply chain restructuring strategies. In order to maintain market share, upstream companies must passively accept capital expenditures and production line adjustments, and their dependence on core suppliers is not diminished but rather maintained at a high level due to the strengthening of head-end effects.