CITIC Securities: Fengyun-3 has successfully launched into orbit, marking a new stage of exploration in reusable commercial aerospace.

CICC research report believes that on December 3rd, the Blue Arrow Aerospace Zhuque III Y1 rocket successfully entered orbit, becoming China's first reusable liquid oxygen methane carrier rocket to achieve orbital flight, marking a key breakthrough in China's commercial space industry in reusable technology. Although the first stage recovery did not achieve a soft landing due to abnormal burning, it fully verified the entire process of testing, launch, and flight. Carrier rockets are currently the core bottleneck of China's commercial space industry. The successful orbiting of the Zhuque III Y1 signifies the addition of a lower-cost option to China's two major constellation networks, ushering in a significant turning point in the industry. Subsequent rockets such as Tianlong III, Li Jian II, Changzhou series, and Zhishen Xing I will successively make their maiden flights and carry out recovery experiments, with the potential to further break through industrial bottlenecks, accelerate satellite constellation construction, and bring about an application explosion, thereby streamlining the entire industry chain logic.