Dongxing Securities: Moderately advance the construction of new infrastructure, commercial aerospace will accelerate development

According to the Zhitong Finance APP, Dongxing Securities released a research report stating that the "14th Five-Year Plan" suggests that in building a modern industrial system, efforts should be accelerated to establish a strong aerospace nation; promoting quantum technology and sixth-generation mobile communication as new economic growth points. Currently, China's satellite internet is entering a high-density launch period. As of October 2025, China Satellite Network has launched a total of 93 satellites this year (including experimental satellites). Recently, if the Zhuque-3 and Tianlong-3 rockets successfully complete their maiden flight missions, it means that both will become the main launch rockets for domestic satellite internet, and by 2026, domestic satellite internet will enter a stage of rapid development. At the same time, China is advancing the upgrading and digital transformation of communication networks and computing power network facilities, with the related market continuously expanding.

The main viewpoints of Dongxing Securities are as follows:

Moderately advance the construction of new infrastructure, commercial aerospace will accelerate development

Currently, in China's satellite internet industry chain, satellite operators are mainly undertaken by China Satellite Network and Shanghai Yuanxin Satellite, which are building satellite factories to achieve a production line model; in the rocket development phase, private rocket companies have rapidly developed in recent years; in terms of launch sites, there are currently six major launch bases in the country, and private rocket companies have also begun to build dedicated launch positions.

As of October 2025, China Satellite Network has launched a total of 93 satellites this year (including experimental satellites). On October 17, Shanghai Yuanxin completed the launch of the sixth batch of networking satellites with one rocket carrying 18 satellites, bringing the total number of satellites in orbit to 108. Currently, the Zhuque-3 carrier rocket is entering a critical stage of preparation for its maiden flight. From October 18 to 20, 2025, the Zhuque-3 Yao-1 carrier rocket of Blue Arrow Aerospace successfully completed the first phase of its maiden flight mission at the launch site of the Dongfeng Commercial Aerospace Innovation Experimental Zone, which included fueling and static ignition tests.

On October 29, 2025, Tianbing Technology announced that its large liquid carrier rocket "Tianlong-3" successfully completed the "one rocket 36 satellites" separation test at the Zhangjiagang Intelligent Manufacturing Base, marking the first time in the country to achieve the simultaneous separation of 36 satellites, setting a record for the largest number of satellite separations in China. The Tianlong-3 rocket is scheduled to execute its maiden flight mission by the end of 2025.

Dongxing Securities believes that if the Zhuque-3 and Tianlong-3 rockets successfully complete their maiden flight missions, it means that both will become the main launch rockets for domestic satellite internet, and by 2026, domestic satellite internet will enter a stage of rapid development.

Promote the upgrading and digital transformation of communication networks and computing power network facilities, with the related market continuously expanding

Dongxing Securities stated that promoting the upgrading and digital transformation of traditional infrastructure means that the national investment in communication network and computing power network infrastructure will shift from large-scale investment to intensive and efficient development. From the perspective of the incremental market, the market for base station equipment, IDC, liquid cooling, optical modules, and computing power chips related to communication networks and computing power networks will continue to expand. On the other hand, the industrial incremental market extends to downstream applications, with technological dividends continuously being released.

Specific progress in the construction of communication network and computing power network facilities in 2025 As of the first half of 2025, the number of 5G base stations in China reached 4.549 million, a net increase of 298,000 compared to the end of the previous year, with the number of newly added 5G base stations decreasing compared to the same period last year. In addition, China is actively promoting the upgrade of 5G to 5G-A networks, with the three major domestic operators having announced their 5G-A commercial plans and implementation progress, advancing the large-scale commercial deployment of 5G-A technologies such as three-carrier aggregation and RedCap, and having deployed 5G-A networks in over 300 cities. In the application field, the national construction project of "5G + Industrial Internet" has exceeded 18,500, and 5G applications have penetrated into 80 of the 97 major categories of the national economy, with a total of over 138,000 related cases.

Since 2025, the market size of the intelligent computing industry has continued to expand, with significant improvements in intelligent computing scale and data storage scale. According to the "2025 Comprehensive Computing Power Index" released by the China Academy of Information and Communications Technology, as of the end of June 2025, the total scale of operational computing power center racks in China reached 10.85 million standard racks (up from 8.8 million at the end of 2024, an increase of 23.3%), and the scale of intelligent computing power reached 788 EFLOPS (up from 725.3 EFLOPS at the end of 2024). As of the end of June 2025, the national storage capacity exceeded 1,680 EB, an increase of about 40% compared to 2023.

Promoting quantum technology and sixth-generation mobile communication as new economic growth points, cultivating emerging high-tech industrial clusters

Dongxing Securities believes that the "Suggestions" propose a forward-looking layout for future industries, promoting quantum technology and sixth-generation mobile communication as new economic growth points. These industries are gaining momentum to help recreate a high-tech industry in China over the next decade, with related industries currently in the early stages of development. The specific development progress of quantum technology and sixth-generation mobile communication is as follows:

Currently, domestic quantum information technology is gradually transitioning from laboratory research to industrial application, entering a new stage characterized by collaborative promotion of "production, education, research, application, and management," and beginning to form a preliminary industrial ecosystem.

In the application field, it is becoming a trend for quantum communication companies to collaborate with telecommunications network operators to conduct technology verification and application exploration, with ongoing research on the integration of different types of ICT systems and networks. Quantum computers theoretically possess ultra-fast parallel computing capabilities, and through specific algorithms, quantum computing can demonstrate faster, more accurate, and more resource-efficient computational advantages than classical computers in addressing significant social and economic value problems (such as cryptography, big data optimization, material design, drug analysis, etc.). The current field is in the early exploratory stage with multiple technological routes coexisting.

Quantum precision measurement mainly utilizes the high sensitivity of quantum states to the environment to enhance the measurement accuracy of physical quantities such as time, position, acceleration, and electromagnetic fields, with advantages such as rich application scenarios and clear industrialization prospects. The industry is entering a diversified development cycle, where all aspects, including laboratory research and development, prototype breakthroughs, engineering application scenario implementation, and meeting actual scenario capability requirements, need to master relevant core technological capabilities.

Global 6G enters a critical layout stage, with ITU clarifying the 6G development timeline: Technical standardization work will start in 2025, the first standard will be frozen in 2029, and commercial use will be achieved in 2030 Countries around the world are accelerating the advancement of technology research and development, standard formulation, and spectrum resource competition. China has incorporated 6G into its future industry cultivation system, relying on the IMT-2030 promotion group to coordinate the strengths of industry, academia, and research, and is leading the establishment of the first 6G standard project by 3GPP.

Risk Warning

Geopolitical risks, slower-than-expected policy implementation, and commercial aerospace development not meeting expectations