In February, the satellite Internet plate rebounded with the market after a brief correction, and the rebound was stronger than the market. In February 2024, the satellite Internet concept index rebounded with the broader market after a brief correction, rising by 14.68 percent in February, outperforming the broader market and the military industry, outperforming the communications industry. On February 29, 2024, the satellite Internet concept index PE-TTM to 76.32 times, at 64% since 2021.

industry trends:

satellite end: on February 29, 2024, the satellite internet high orbit 01 satellite developed by the fifth academy was successfully launched, the satellite constellation network was opened, and the satellite internet industry started a new journey. On February 3, 2024, two sky-earth integrated low-orbit test satellites equipped with China Mobile's on-board base station and core network equipment were successfully launched into orbit. This double-star test system is an important breakthrough for China Mobile to promote the development of the sky-earth integrated network.

launch end: according to the blue book on China's space science and technology activities (2023), China's space is expected to launch 100 times in 2024, up 49% from 67 times in 2023, and the number of launches has jumped. On February 3, 2024, the first test run of the second sub-stage and general-purpose hydrogen-oxygen final stage power system of the Changba modified rocket was successful. This test run is the largest test in the development process of the Changba modified rocket, which is of great significance to the whole development work and the first flight of subsequent models in the year.

application side: Huawei, OPPO, glory, millet and other domestic mobile phone manufacturers have launched satellite communication mobile phones, millet Civi series mobile phones support Tiantong satellite communication standard, which means that satellite communication in the mobile phone application is gradually sinking, in the future is expected to gradually become the standard of mobile phones. China Weitong United Airlines launched aviation satellite Internet product flow package, with the continuous progress of technology, the future satellite Internet will play an important role in more areas.

capital side: yuanxin satellite has completed round a financing of 6.7 billion yuan. the raised funds will be mainly used for constellation construction, technology research and development, market development and daily operation of the company. G60 star chain will usher in a key year in 2024.

2023 China's commercial aerospace ushered in the real first year, the industrial chain began to mature, infrastructure is more and more perfect, the demand is gradually clear. Subsequent catalysis will continue in 2024, the third test launch of the starship will be imminent, the 3GPP 5G R18 version will be frozen in Q2, and the Hainan Commercial Space Launch Site will be launched in June. According to the development sequence of satellite internet industry, the upstream space segment satellite manufacturing and satellite launch links will benefit first, followed by the ground segment network construction equipment and application terminals. it is suggested to pay attention to the core suppliers of each link of the industrial chain:

satellite manufacturing: satellite load: guobo electronics (688375, unrated), aerospace electronics (600879, unrated), Shanghai hanxun (300762, unrated), Shenglu Communications (002446, unrated), Zhenxin Technology (300101, unrated), Chengchang Technology (001270, unrated), Zhenlei Technology (688270, unrated), Aerospace Electrical Appliances (002025, Buy), Yaguang Technology (300123, unrated), Aerospace Huanyu (688523, unrated), etc. Satellite Platform: Aerospace Smart Equipment (300455, unrated), Guoguang Electric (688776, unrated), Zhimingda (688636, unrated), Aerospace Micro (300053, unrated), Jiuzhiyang (300516, unrated), Tianyin Electromechanical (300342, unrated), etc. Satellite assembly: China Satellite (600118, unrated), Shanghai Shanghai Engineering (603131, unrated), etc. Satellite Test: Su Test (300416, unrated), Cisco (688053, unrated), Western Test (301306, unrated), Holewo (688682, unrated), Kun Heng Shunwei (688283, unrated), etc.

satellite launch & rocket development: gaohua technology (688539, unrated), national science and technology military industry (688543, unrated), zhongtian rocket (003009, unrated), parker new material (605123, unrated), haoneng shares (603809, unrated), space power (600343, unrated), sri new material (688102, unrated), etc.

ground equipment: Hagrid communication (002465, unrated), huali chuangtong (300045, unrated), electric chip (600877, unrated), jinxinnuo (300252, unrated), star net yuda (002829, unrated), reko defense (002413, unrated), hytera (002583, unrated), mengsheng electronics (688311, unrated), etc.

Risk

Policy support is less than expected; satellite industry infrastructure and development is less than expected; technology development is less than expected