China Spacesat Co Ltd

China Spacesat released its 2026 interim report, with net profit attributable to the parent company of 34.57 million yuan, achieving a turnaround to profitability. The company's total operating revenue was 1.885 billion yuan, an increase of 564 million yuan compared with the same period last year, up 42.72 percent year on year, marking two consecutive years of growth. Net cash outflow from operating activities was 281 million yuan, an increase of 229 million yuan compared with the same period last year. The company's latest gross margin was 18.75 percent, up 4.73 percentage points from the previous quarter and up 6.02 percentage points from the same period last year. The latest return on equity was 0.54 percent, up 1.02 percentage points from the same period last year.

At 12:10 p.m. on August 16, China used a Long March 12 carrier rocket at the Hainan commercial space launch site to successfully send 24 low-orbit internet satellites into space. The satellites entered their planned orbits and the launch mission was a complete success. The Long March 12 rocket was launched just two and a half days after arriving at the site, setting a breakthrough improvement in the speed of China's commercial space launches and significantly strengthening rapid response capability. Xiangcai Securities believes that SpaceX's performance has confirmed the commercial viability of satellite internet, which has a strong mapping effect on the global industrial chain. Domestically, the current stage is one of network construction first and application lagging behind, and subsequent policy catalysts and terminal volume growth will become key variables in shifting the value focus downstream. Among related companies, Jovo Energy successfully won the bid for special fuel and special gas procurement for launch missions at the Hainan commercial space launch site from 2026 to 2028, and in the first half of this year it has already completed special fuel and special gas support services for seven Long March series rocket launches. China Spacesat has developed a full range of common platform models for small satellites and microsatellites, and possesses core technical capabilities including complex constellation system design, full-link simulation, autonomous mission planning, on-board intelligent processing, integrated AIT management and control, and batch production.

On the evening of July 12, multiple listed companies on the Shanghai and Shenzhen exchanges released important announcements. StarNeto clarified that its satellite communication business is unrelated to the breakthrough in sea recovery technology for the Long March 10B carrier rocket, and that revenue from new businesses such as the low-altitude economy accounts for less than 5%. Zhezhong Co., Ltd. cautioned that there is uncertainty in converting new orders signed in 2026 into revenue, and that revenue from its main business of complete switchgear has continued to decline. Juli Sling was fined 4.5 million yuan by the Hebei Securities Regulatory Bureau for misleading statements on an interactive platform. The controlling shareholder of Western Region Gold, Xinjiang Nonferrous Metals, plans to merge entirely with Xinjiang Geology and Mining Investment Group, with the actual controller remaining unchanged. In terms of earnings, Yuehai Feed's net profit for the first half of the year is expected to increase by 965.92% to 1302.52%, Ningbo Fubon is expected to increase by 416.54% to 519.85%, Shanshan Co., Ltd. is expected to increase by 262% to 334%, Sanyou Chemical is expected to increase by about 129%, Yalian Machinery's flash report shows net profit growth of 60.06%, Shengnuo Bio is expected to increase by 43.23% to 64.79%, and both Rundu Pharma and China Satellite are expected to turn losses into profits year-on-year. In addition, Taikang Life Insurance plans to reduce its stake in Guoke Hengtai by no more than 3%, and Hengtong Co., Ltd. plans to invest in a digital smart industrial park in Indonesia, with a planned investment of no more than 2 billion yuan.

China Satellite has released its 2026 half-year performance forecast, projecting attributable net profit of 30.5 million to 36.5 million yuan for the first half, swinging from a loss to a profit year-on-year. The company said that the number of contract performance milestones meeting acceptance criteria in its satellite manufacturing business increased compared with the same period last year, leading to a corresponding rise in revenue and profit, while its satellite application business maintained steady development. The company is advancing system restructuring and capability rebuilding around integrated communication, navigation and remote sensing applications, accelerating business transformation. In the secondary market, China Satellite shares hit the daily limit up last Friday, closing at 90.02 yuan, with total market capitalisation rising to 106.4 billion yuan. That day, the A-share commercial aerospace and satellite navigation sectors surged across the board, with more than 50 stocks collectively hitting their daily limit up. Earlier, the Long March 10B carrier rocket successfully achieved controlled first-stage recovery, marking China's first successful controlled recovery of a carrier rocket and the world's first net-based recovery of a carrier rocket, signifying that China has become the second country after the United States to master high-payload reusable rocket technology.

China Satellite announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 30.5 million and 36.5 million yuan, swinging from a loss to a profit compared with the same period last year. The company said that in the first half, more satellite development contracts reached acceptance milestones than in the prior-year period, boosting revenue and profit, while the satellite application business maintained steady growth. The company is pushing forward system restructuring and capability rebuilding around integrated communication, navigation, and remote sensing applications, and accelerating business transformation. Earlier, the Long March 10B carrier rocket successfully completed China's first at-sea controlled recovery of a first stage, sending multiple stocks in the A-share commercial aerospace sector up by their daily limit.

The Long March 10B launch vehicle has made a successful maiden flight, achieving China's first controlled recovery of a first stage, and also the world's first net-based recovery of a launch vehicle. The rocket was developed by the First Academy of China Aerospace Science and Technology Corporation. It is a two-stage liquid-propellant launch vehicle with a diameter of five meters, a liftoff thrust of approximately 890 tonnes, and a reusable-state low Earth orbit payload capacity of 16 tonnes. This mission successfully validated multiple key core technologies for first-stage reuse, with a first-stage reuse flight expected to be completed before the end of this year. In afternoon trading, commercial aerospace concept stocks surged. Youji shares hit the 30 percent daily limit up, while Hailanxin and Tongyizhong hit the 20 percent daily limit up. China Satcom and China Satellite, each with a market value of 100 billion yuan, hit their daily limit up in seconds.

A total of 12 stocks received buy ratings from institutions today, with BOE Technology and China Satellite gaining first-time coverage. According to statistics from Securities Times Data Treasure, institutions published 12 buy rating records covering 12 stocks, with BOE Technology and Han's Laser drawing the most attention. Among the 9 rating records that included target prices, 8 stocks have upside potential exceeding 20 percent. Azure Lithium Core leads with 93.31 percent upside, as Soochow Securities set a target price of 37 yuan. Capchem and Tinci Materials have upside potential of 69.88 percent and 65.75 percent respectively. In terms of performance, among the 8 stocks that disclosed first-half earnings forecasts, Tinci Materials is expected to post the highest net profit growth, surging 963.83 percent year-on-year, followed by Han's Laser and Capchem. By sector, the electrical equipment industry was the most favored, with three stocks including Capchem and Tinci Materials receiving ratings, while the electronics and machinery equipment sectors each had two stocks rated.