Space Economy Enters the Era of Scale Rocket Launches & Satellite Manufacturing Lead Industry Development Direction.

Huachuang Securities released a research report stating that satellite internet systems have the characteristics of wide coverage, low latency, broadband, and low cost, and have become the key direction for development in the communication field. Commercial aerospace has formed four major profit models: launch services, satellite manufacturing, operation services, and data and API. Due to the limited number of satellites that can be accommodated in low Earth orbit, accelerating the process of occupying orbital positions by various countries promotes the rapid development of industries such as rocket launches and satellite manufacturing, bringing investment opportunities in the industry chain. Huachuang Securities' main points are as follows: Commercial aerospace is vast and profound, resonating at home and abroad to open a new era The downstream applications of commercial aerospace include satellite communication, navigation, remote sensing, etc. Among them, in the communication field, Space-X has generated scale income. By 2025, it will operate more than 9,000 Starlink satellites with 9 million users, and Space-X's revenue will exceed 18.5 billion US dollars in 2025. Commercial aerospace satellites are divided into low-earth orbit, medium-earth orbit, and geostationary orbit. Low-earth orbit satellites are very suitable for the development of commercial aerospace due to their small transmission delay, low link loss, flexible launch, rich application scenarios, and low overall manufacturing cost. Low-earth orbit satellites are widely used in communication and other major downstream application areas. CCID CONSULTING data shows that the low-earth orbit of Earth can accommodate about 60,000 satellites, and the Ku and Ka communication frequency resources mainly used by low-earth orbit satellites are gradually becoming saturated. Data from "International Space" shows that as of the end of 2024, there were a total of 11,605 spacecraft in orbit globally, of which the United States had 8,813 spacecraft in orbit, accounting for 75.9% of the total globally, and China had 1,094 spacecraft in orbit, accounting for 9.4% of the total globally, ranking second. From the perspective of new additions, in 2024, the global launch of spacecraft was 2,873, with the United States launching 2,269 spacecraft, and China launching 105 "Qianfan" constellation satellites. Space orbit and frequency bands, as prerequisites for the normal operation of communication satellites, have become key resources that satellite companies worldwide are vying for. The space economy has entered the era of scale, with cost optimization and technological upgrading progressing synchronously The commercial aerospace industry revolution began in the 2010s, with American private aerospace companies led by SpaceX leading the industry's pattern change through technological breakthroughs and business model innovations. At present, China and the United States rely on mature technology and excellent supply chain systems to successfully occupy nearly 80% of the global commercial aerospace market share. Commercial aerospace has formed four major profit models: launch services, satellite manufacturing, operation services, and data and API. 1) Rocket launch: the cost of rockets is one of the core factors restricting the efficiency and cost of low-earth orbit satellite system construction. The high cost of rockets is currently controlled by rocket recovery technology. Reusable rockets significantly reduce launch costs by recovering core parts such as the first-stage body and fairings for reuse after inspection and repair. Reusable rockets create a logical loop of "reduction in transportation cost-increase in satellite launch quantity-decrease in satellite cost." 2) Satellite manufacturing: the satellite platform is a combination of all service systems that support and ensure the normal operation of the payload. According to the physical composition and service functions of the satellite system, the satellite platform can be divided into payload, structure, thermal control, control, propulsion, power supply, distribution, telemetry and telecontrol systems, etc. Among them, solar panels can effectively utilize CECEP Solar Energy to continuously provide energy for satellite operation. Flexible solar panels use ultra-thin flexible substrates with a thickness usually not exceeding 0.5 millimeters. They can reduce weight by 20%-40% under the same area, with a power conversion efficiency of over 30% for battery panels, and the storage volume can be reduced by more than 60% compared to traditional rigid solar panels. Flexible solar panel design not only significantly reduces launch costs but also releases space in fairings, increases satellite design flexibility, and in-orbit power supply capacity. From the industry's development trajectory, flexible solar panels are not a gradual "lightweight substitute" upgrade but a necessary choice to meet the explosive demand for satellite power. 3) Ground equipment: satellite ground equipment is an important part of the satellite system, ensuring that the satellite operates normally and fulfills its functions, enabling various applications such as communication, navigation, remote sensing, etc. As of now, the leading enterprise in the commercial aerospace field, Space-X's Starlink system, has covered more than 150 countries in the Americas, Europe, Asia, and Africa, serving over 9 million users globally, connecting to ground terminals through a large-scale satellite network, providing high-speed broadband services to remote areas and areas difficult to cover by traditional networks. At the same time, domestic manufacturers are also actively deploying, importing leading domestic and foreign industry enterprises, and accumulating technical experience. Risk warning: Unexpected delays in technology research and development and iteration, unexpected launch capacity, and intensified industry competition.