Huaxi Securities: Commercial aerospace accelerates promotion, satellite internet applications expected to accelerate landing.

Huaxi Securities pointed out that the country is accelerating the development of commercial aerospace, which is expected to help accelerate the popularization of applications such as direct satellite connection for mobile phones and Beidou SMS. Satellite networks are the basis for the construction of 6G networks, and the current timing is in line with 6G standards and construction time. Since August, relevant departments have indicated that they will issue licenses for satellite internet, marking a crucial first step for commercial satellite internet operations in China. The issuance of licenses is expected to accelerate the entire industry chain towards scale. The current development momentum of satellite internet is rapid, with satellites being launched regularly to increase communication capacity and reduce latency. At the same time, we can expect to see rapid implementation of applications such as mobile broadband direct connection to satellites and low-orbit satellite network-linked intelligent driving systems. It is recommended to continue investing in satellite communication and satellite Internet of Things related beneficiaries.