| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 36.79 | -60 |
| Intrinsic value (DCF) | 11.44 | -87 |
| Graham-Dodd Method | 4.04 | -96 |
| Graham Formula | n/a |
China Spacesat Co., Ltd. is a premier Chinese aerospace manufacturer and technology application company specializing in small and micro satellite development. Operating as a subsidiary of the state-owned China Aerospace Science and Technology Corporation (CASC), the company designs and manufactures advanced satellite platforms including CAST10, CAST20, CAST2000, CAST3000, and CAST4000 series. Its comprehensive product portfolio encompasses optical remote sensing, electromagnetic and microwave remote sensing, and science/technology testing satellites. Beyond manufacturing, China Spacesat provides integrated satellite ground application systems, terminal equipment manufacturing, and satellite operation services. The company serves critical sectors including communications, satellite navigation, remote sensing, cloud computing, information security, smart cities, national defense, and economic development. Headquartered in Beijing and listed on the Shanghai Stock Exchange, China Spacesat represents China's strategic push for technological self-reliance in space infrastructure and plays a vital role in the country's expanding space economy, supporting both civilian and defense applications.
China Spacesat presents a specialized investment opportunity within China's strategic aerospace sector, backed by its parent company CASC which provides significant state support and contract flow. The company operates in a protected market with high barriers to entry, benefiting from China's national space ambitions. However, investment attractiveness is tempered by concerning financial metrics including negative operating cash flow (-CNY 316.8 million), minimal net income (CNY 27.9 million on revenue of CNY 5.16 billion), and a low EPS of 0.02. The company's beta of 0.422 suggests lower volatility than the broader market, potentially appealing to risk-averse investors seeking exposure to China's space program, but the financial performance raises questions about operational efficiency and profitability in the current period. The modest dividend yield of CNY 0.01 per share provides limited income appeal.
China Spacesat occupies a unique competitive position as a specialized satellite manufacturer within China's state-controlled aerospace ecosystem. Its primary competitive advantage stems from its affiliation with CASC, China's main space contractor, which ensures preferential access to government contracts, R&D resources, and national space programs. The company has developed specialized expertise in small and micro satellites through platforms like CAST2000-4000, positioning it well for the growing demand for satellite constellations and specialized space applications. However, its competitive positioning is largely confined to the domestic Chinese market due to export restrictions and geopolitical considerations affecting space technology. While the company benefits from China's push for space independence and reduced reliance on foreign technology, it faces limitations in international market access compared to global competitors. Its integration capabilities across satellite manufacturing, ground systems, and operation services provide a comprehensive solution for domestic clients, but technological sophistication may still lag behind leading Western aerospace firms in certain advanced satellite technologies. The company's financial performance suggests challenges in translating its privileged market position into strong profitability, potentially indicating inefficiencies or pricing pressures within China's defense-industrial complex.