Space computing power represents a cutting-edge technology that extends data centers and computational capabilities into space orbits. Leveraging satellites and their onboard computing hardware, it facilitates on-orbit data processing, revolutionizing the way we handle and utilize data.

Beijing has set its sights on constructing and operating a centralized, large-scale data center system on the 700-800 km dawn-dusk orbit, boasting a power capacity exceeding one gigawatt (GW). This ambitious project aims to usher in an era of large-scale AI computing power in space.

Deciphering the Space Computing Power Industrial Chain

Upstream (Hardware Foundation)

The upstream segment forms the physical bedrock of the space computing power industry, with its core components comprising various hardware devices and launch capabilities essential for its realization. This encompasses rocket launches (where technologies like multiple satellites per launch are driving down costs), satellite platforms (achieving mass production through miniaturization and modularization), onboard processors (advancing towards the hundred-TOPS level in computational power), laser communication terminals (establishing high-speed inter-satellite links at 10-100 Gbps), and ground stations (acting as gateways for connecting terrestrial and space computing power). Significant strides are being made in cost reduction and performance enhancement.

Midstream (Operational Scheduling)

The midstream segment can be likened to the "brain and neural network" of the industry, with its primary focus on the efficient and collaborative scheduling of computing power. This includes constellation design and manufacturing (with multiple constellations like the Domestic Satellite Computing Plan and TianSuan Constellation developing in tandem), on-orbit operation and control, inter-satellite networking, and computing power scheduling platforms (responsible for cross-satellite task allocation, route optimization, etc., with extremely high technical barriers). Additionally, it necessitates fostering deep integration with the "East Data, West Computing" initiative to establish an integrated space-terrestrial computing power infrastructure.

Downstream (Application Ecosystem)

The downstream segment embodies the ultimate realization layer of industrial value, determining the market ceiling. Application scenarios have already permeated multiple high-value domains, such as providing mobile broadband services for aviation and navigation, conducting remote sensing on-orbit processing for agriculture and forestry, offering emergency communication and disaster recovery services for disaster scenarios, and meeting the computing power demands for cross-domain AI collaboration among enterprises. Looking ahead, it is anticipated to further expand from the ToB/ToG sectors to the ToC market.

Profitability Analysis of Enterprises in the Space Computing Power Industrial Chain

Corporate profitability is typically gauged by the amount and level of earnings a company generates over a specified period. Profitability analysis delves deep into a company's profit margins to assess its financial health and performance.

This article, part of the corporate value series' [Profitability] installment, selects 23 enterprises from the space computing power industrial chain as research samples. It employs return on equity (ROE), gross profit margin, and net profit margin as key evaluation metrics.

It is important to note that the data presented is based on historical performance and does not represent future trends. It is intended for static analysis purposes only and should not be construed as investment advice.

No.10 Unity Semiconductor (Xiamen) Co., Ltd

Industry Segment: LED

Profitability: ROE of 2.34%, gross profit margin of 16.67%, net profit margin of 3.95%

Performance Forecast: The highest ROE in the past three years stands at 2.34%, with the latest forecast average at 3.19%.

Main Products: Epitaxial wafers and chips constitute the primary source of income, accounting for 77.81% of revenue, with a gross profit margin of 17.77%.

Company Highlights: Unity Semiconductor is a leading domestic supplier of gallium arsenide solar cells, a dominant material in the satellite solar cell market.

No.9 iSoftStone

Industry Segment: IT Services

Profitability: ROE of 1.71%, gross profit margin of 12.46%, net profit margin of 0.44%

Performance Forecast: ROE has continuously declined to 1.71% over the past three years, with the latest forecast average at 3.73%.

Main Products: Software and digital technology services are the primary source of income, accounting for 57.86% of revenue, with a gross profit margin of 17.30%.

Company Highlights: iSoftStone, in collaboration with the Zhejiang Lab and Guoxing Aerospace, has jointly launched the "Satellite Computing Plan" to construct an integrated space-terrestrial computing power network.

No.8 Shenzhen Energy

Industry Segment: Thermal Power Generation

Profitability: ROE of 4.47%, gross profit margin of 19.66%, net profit margin of 6.39%

Performance Forecast: ROE has continuously declined to 4.47% over the past three years, with the latest forecast average at 4.60%.

Main Products: Electricity is the primary source of income, accounting for 62.25% of revenue, with a gross profit margin of 17.75%.

Company Highlights: Shenzhen Energy's main business encompasses the development, production, purchase, and sale of various conventional and new energy sources. The company indirectly holds a 0.19% stake in Guoxing Aerospace.

No.7 Yunnan Germanium Industry Co., Ltd

Industry Segment: Other Minor Metals

Profitability: ROE of 3.68%, gross profit margin of 28.48%, net profit margin of 6.26%

Performance Forecast: The highest ROE in the past three years is 3.68%, with the latest forecast average at 6.05%.

Main Products: Material-grade germanium products are the primary source of income, accounting for 46.11% of revenue, with a gross profit margin of 29.00%.

Company Highlights: Germanium wafers are the preferred key material for producing satellite solar cells; Yunnan Germanium Industry is undertaking a germanium wafer construction project for space solar cells.

No.6 Xinhuanet

Industry Segment: Portal Website

Profitability: ROE of 6.70%, gross profit margin of 38.11%, net profit margin of 10.92%

Performance Forecast: ROE has fluctuated between 6%-9% over the past three years, with the latest forecast average at 6.70%.

Main Products: Government-enterprise integrated services are the primary source of income, accounting for 38.65% of revenue, with a gross profit margin of 38.44%.

Company Highlights: Xinhuanet's main business includes omnimedia advertising services, government-enterprise integrated services, digital and intelligent services, and cultural and creative services. The company holds a 0.22% stake in Guoxing Aerospace.

No.5 Shanghai Harbor Engineering & Technology Group Co., Ltd.

Industry Segment: Other Specialized Engineering

Profitability: ROE of 5.22%, gross profit margin of 29.59%, net profit margin of 6.99%

Performance Forecast: ROE has fluctuated between 5%-11% over the past three years, with the latest forecast average at 7.11%.

Main Products: Foundation treatment is the primary source of income, accounting for 63.55% of revenue, with a gross profit margin of 35.34%.

Company Highlights: Shanghai Harbor provides one-stop geotechnical engineering integrated services covering survey, design, construction, and monitoring. The company is a core supplier of energy subsystems for space-based infrastructure.

No.4 Xinjiang Communications Construction Co., Ltd.

Industry Segment: Infrastructure and Municipal Engineering

Profitability: ROE of 9.26%, gross profit margin of 14.31%, net profit margin of 4.77%

Performance Forecast: ROE has continuously declined to 9.26% over the past three years, with the latest forecast average at 11.10%.

Main Products: Construction is the primary source of income, accounting for 95.64% of revenue, with a gross profit margin of 14.55%.

Company Highlights: Xinjiang Communications Construction's main business is in the infrastructure sector of the civil engineering and construction industry. The company holds a 0.54% stake in Guoxing Aerospace.

No.3 Dawning Information Industry Co., Ltd

Industry Segment: Other Computer Equipment

Profitability: ROE of 9.81%, gross profit margin of 29.16%, net profit margin of 15.16%

Performance Forecast: ROE has fluctuated between 9%-11% over the past three years, with the latest forecast average at 11.16%.

Main Products: IT equipment is the primary source of income, accounting for 89.04% of revenue, with a gross profit margin of 27.34%.

Company Highlights: Dawning Information Industry's main business involves the research, development, and manufacturing of high-end computers, storage, security, and data center products. The company collaborates with Aerospace Information Research Institute to develop dedicated core components for space computing scenarios.

No.2 Aerospace Information Research Institute

Industry Segment: IT Services

Profitability: ROE of 9.61%, gross profit margin of 49.59%, net profit margin of 16.14%

Performance Forecast: ROE has continuously declined to 9.61% over the past three years, with the latest forecast average at 11.30%.

Main Products: GEOVIS technology development and services are the primary source of income, accounting for 70.76% of revenue, with a gross profit margin of 54.46%.

Company Highlights: Aerospace Information Research Institute's main products include offline and online digital earth products. The company collaborates with Dawning Information Industry to build an open and inclusive space computing network.

No.1 Satellite Navigation and Control Co., Ltd.

Industry Segment: Industry Application Software

Profitability: ROE of 31.93%, gross profit margin of 52.80%, net profit margin of 29.47%

Performance Forecast: ROE has continuously declined to 31.93% over the past three years, with the latest forecast average at 18.38%.

Main Products: Technology development and services are the primary source of income, accounting for 77.68% of revenue, with a gross profit margin of 56.81%.

Company Highlights: Satellite Navigation and Control's space cloud product suite provides comprehensive space data services and intelligent computing services, cementing its position as a leader in the space computing power industry.