Great Wall Securities: The satellite internet industry is intensively catalyzing, and we continue to be optimistic about investment opportunities in various segments of commercial aerospace

According to the Zhitong Finance APP, Great Wall Securities released a research report stating that, unlike previous satellite communication licenses, satellite internet focuses on large-scale constellation networks composed of low Earth orbit satellites, involving key issues such as operating entities, business scope, space frequencies, orbital resources, and constellation scale. With the acceleration of low Earth orbit satellite constellation construction, satellite internet is moving towards commercial operation, necessitating the timely issuance of satellite internet licenses. The "Guiding Opinions" further clarify core development directions for satellite internet, such as direct satellite connections for mobile phones, and with the commercialization of satellite internet, relevant departments have prepared preliminary policies such as licenses. Currently, China's satellite internet is entering a period of intensive networking and continues to achieve breakthroughs in areas such as IPO financing. The firm remains optimistic about investment opportunities in the related industrial chain.

Event: On August 27, 2025, the Ministry of Industry and Information Technology issued the "Guiding Opinions on Optimizing Business Access to Promote the Development of the Satellite Communication Industry" (hereinafter referred to as the "Guiding Opinions").

Great Wall Securities' main viewpoints are as follows:

Top-level design continues to exert efforts, aiding the rapid evolution of satellite internet

The "Guiding Opinions" indicate that by 2030, the satellite communication management system and policies will be further improved, the industrial development environment will continue to optimize, and the innovative vitality of various operating entities will fully burst forth. The comprehensive development levels of infrastructure, industrial supply, technical standards, and international cooperation will significantly improve, with new models and new business formats such as direct satellite connections for mobile phones being scaled up. The number of satellite communication users will exceed ten million, promoting the full integration of satellite communication into the new development pattern and effectively serving the high-quality development of the economy and society. The "Guiding Opinions" propose three major reform measures: first, support the accelerated development of low Earth orbit satellite internet, driving collaborative innovation across the industrial chain and achieving global broadband network coverage. Second, support telecom operators in conducting terminal equipment direct satellite connection services, fully utilizing high and low Earth orbit satellite resources through co-construction and sharing, and accelerating the extension of satellite communication applications from specialized fields to the general public. Third, organize commercial trials for satellite IoT, research the establishment of new satellite communication businesses, and further expand access for private enterprises.

In addition, on August 25, according to IT Times, relevant departments will soon issue satellite internet licenses. According to C114 Communication Network, the satellite internet licenses being issued belong to basic telecommunications business licenses, specifically the A13 first-class satellite communication business, including A13-1 satellite mobile communication services. Unlike previous satellite communication licenses, satellite internet focuses on large-scale constellation networks composed of low Earth orbit satellites, involving key issues such as operating entities, business scope, space frequencies, orbital resources, and constellation scale. With the acceleration of low Earth orbit satellite constellation construction, satellite internet is moving towards commercial operation, necessitating the timely issuance of satellite internet licenses.

Satellite internet enters a period of intensive networking, continuously optimistic about investment opportunities in various segments of commercial space

Recently, China's satellite internet has entered a period of intensive networking. Since the end of July, China Star Network has continuously implemented multiple launches. From July 27 to August 4, within just nine days, China Star Network completed three launch missions, sending three groups of low Earth orbit satellite internet satellites into space. Subsequently, from August 13 to August 17, within five days, China Star Network again welcomed three launches, continuously accelerating the networking process At the same time, the IPOs related to satellite internet commercial space in our country are also accelerating. According to the Securities Times, on July 30, the information on the official website of the China Securities Regulatory Commission showed that Blue Arrow Aerospace Technology Co., Ltd. has initiated listing guidance and plans to be listed on the Sci-Tech Innovation Board, with China International Capital Corporation serving as the guidance institution. Blue Arrow Aerospace is laying out a large satellite constellation, with its subsidiary Hongqing Technology planning a constellation of 10,000 satellites. This constellation is the third large constellation plan in our country following the GW constellation and the Qianfan constellation, and it is also the first large constellation project built by a private company. In addition, according to the Sci-Tech Innovation Board Daily, Jiangsu Yixin Aerospace Technology Co., Ltd. has completed guidance filing registration with the Jiangsu Securities Regulatory Bureau and plans to IPO on the A-share market, with Minsheng Securities as the guidance institution. According to the Sci-Tech Innovation Board Daily, Yixin Aerospace has delivered more than 500 sets of aerospace electronic products, and its satellite IoT payloads have been applied to multiple domestic satellite IoT constellations, collecting and transmitting over 10 billion messages annually. In 2024, Yixin Aerospace has equipped IoT payloads for 26 satellites in orbit.

The bank believes that the current satellite internet commercial space in our country has formed a dual-driven model from both policy and industry ends. The release of this "Guiding Opinion" further clarifies the core development directions of satellite internet, such as direct satellite connections like mobile phones, and continues to promote the in-depth development of satellite internet through top-level design. State-owned and private enterprises continue to form a synergy, and with the commercialization of satellite internet, relevant departments have prepared licenses and other preliminary policies. Currently, our country's satellite internet is entering a period of intensive networking and continues to achieve breakthroughs in IPO financing and other aspects. The bank remains optimistic about investment opportunities in the related industrial chain.

Recommended Targets

Satellite Payloads: Shanghai Hanxun, Xinke Mobile, Aerospace Huanyu, Guobo Electronics, Zhenlei Technology, Aerospace Hongtu; Satellite Platforms: Aerospace Zhizhuang, Aerospace Electronics, Jiayuan Technology, China Satellite, Tianyin Electromechanical, Shaanxi Huada, Qianzhao Optoelectronics, Sikrui, Shanghai Huguang; Ground Equipment: Zhenyou Technology, Haige Communications, 712, Zhongke Xingtou, M&S ELECTRONICS, Xinwei Communications, Hwa Create, Shenglu Communications; Satellite Operation Services: China Satellite Communications.

Risk Warning: Risk of intensified market competition; risk of key technology breakthroughs falling short of expectations; downstream demand not meeting expectations; risk of raw material price fluctuations