The long-term space and short-term valuation of commercial spaceflight.

At the beginning of 2026, the commercial aerospace sector led the market with enthusiasm. However, after a continuous rise, the commercial aerospace sector experienced a pullback. We believe that any sector may face adjustment pressure after a short-term continuous rise, and commercial aerospace is no exception. In the face of the adjustment after the sharp rise, it is necessary to distinguish whether it is a temporary consolidation or a long-term downward risk. One of the criteria for judgment is to see if there is a major industry trend driving the previous rise. During the rising period of the industry trend, the fundamentals of core companies will generally improve with the development of the industry. At this time, the pullback is mostly a temporary adjustment, otherwise one should guard against long-term risks. Considering that the industrial trend of commercial aerospace in China has just reached a turning point, we believe that the probability of this round of market ending is small. Of course, this judgment also needs to be combined with continuous tracking of industry progress and market changes. In addition, it is also necessary to differentiate specific companies: after the first round of general rise, the market often experiences differentiation, so it is important to focus on high quality companies with competitive advantages and technological barriers, as well as companies with achievable performance.