Transfer from: Prospective Industry Research Institute

Major listed companies in the industry: China Weitong (601698), Huali Chuangtong (300045), Mengsheng Electronics (688311), Sanwei Communications (002115), etc.

The core data of this article: China's satellite communications industry merger and reorganization event; China's satellite communications industry merger and reorganization motivation

1. Summary of mergers and restructuring events in China's satellite communications industry

From the perspective of representative events, the merger and reorganization of my country's satellite communications industry is mainly vertical integration. Enterprises mostly extend to the hardware manufacturing in the upstream of the industrial chain and the application fields in the downstream of the industrial chain through mergers and acquisitions to achieve business expansion. In addition, in 2016, Three-dimensional Communications has acquired shares in Haiweitong and DBS Measurement and Control, and entered the satellite communications industry through diversified mergers and acquisitions.

2. Mergers and Reorganizations of China's Satellite Communications Industry

The motivations for mergers and reorganizations in the satellite communications industry include the following three categories. As the satellite communications industry is in its infancy and the market competition is fierce, enterprises tend to expand their market share and enhance their market position through horizontal mergers and acquisitions.

3. The overall trend of merger and reorganization of China's satellite communication industry

According to the life cycle theory, China's satellite communications industry is currently in its infancy. In the embryonic period of industry competitors continue to pour in, enterprises begin to compete for talents and resources, enterprises in order to strive for the largest market share, "big fish eat small fish" merger events will continue to emerge, so forward-looking prediction, as the satellite communications industry is still in its infancy in the next few years, the number and amount of merger and reorganization events will continue to rise and expand until the industry enters a mature period.

4. Types and Motivation Trends of Mergers and Reorganizations in China's Satellite Communications Industry

At present, the merger and reorganization of satellite communication industry is mainly horizontal merger and acquisition, which is mainly to overcome the negative externality of enterprises, reduce competition and enhance the control over the market. In the future, with the gradual stabilization of the industry market structure and the expansion of merger and acquisition from "big fish eating small fish" to "integrated strategy" layout, satellite communication enterprises will gradually strengthen their control over the upstream supply chain and downstream application market, as a result, vertical integration types of mergers and acquisitions will continue to increase, when the industry's M & A drivers tend to reduce business risk.

5, China's satellite communications industry mergers and restructuring market trends

In terms of market entities, since the satellite communications industry is still in its infancy in the next few years, the market is still attractive. Therefore, the main body of mergers and acquisitions in the satellite communications market includes both existing competitive companies, in order to expand market share and reduce M & A for business risks; it also includes mergers and acquisitions by other new entrants for rapid entry into the satellite communications industry, such as the integrated layout of the satellite communications market by enterprises in other fields of the Internet of the Internet of the Internet of the Internet of Things.

For more research and analysis of this industry, please refer to the "China Satellite Communications Industry Market Outlook and Investment Strategic Planning Analysis Report" by the Foresight Industry Research Institute.

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