Dongwu Securities: The strategic value of space computing power is becoming more prominent, and it is recommended to focus on breakthroughs in core technology and the advancement of engineering in the industry

The Zhitong Finance App learned that Dongwu Securities released a research report saying that the space computing power industry is evolving at an accelerated pace. As a core path to breaking the bottleneck in global computing power resources, its strategic value is becoming more and more prominent. Currently, technology routes and engineering plans are still in the stage of diversified exploration and rapid iteration. China and the US have formed various unique development patterns, and many technology giants and innovative enterprises have increased their investment and promoted key verification. Space computing is expected to become the fastest-growing, technical barrier, and most disruptive key area of computing power infrastructure in the next ten years. It is recommended to focus on those that have technical advantages in the core area and identify relevant targets for card slots.

The main views of Dongwu Securities are as follows:

Space computing power is a next-generation distributed computing paradigm built in Earth's orbit. The core hardware of the data center is deployed in space to form an orbital AI infrastructure to complete processing and analysis of data at the collection source, thus upgrading the satellite from a traditional “data downstream relay” to an “in-orbit intelligence” that can make independent decisions.

The fundamental driving force for industrial development is to break through the physical and resource limits of terrestrial computing power. Currently, the explosive growth in demand for artificial intelligence computing power has caused terrestrial data centers to face rigid constraints in terms of power supply, cooling, and land space. The almost limitless solar energy unique to the space environment, natural cooling fields close to absolute zero, and flexible modular deployment capabilities provide revolutionary solutions to these bottlenecks in a systematic manner.

Space computing power is becoming a new focus in the big power game. The Chinese side, with national laboratories and aerospace central enterprises as the core, focuses on systematic construction and autonomy and control, and has launched space-based computing systems with world-class technical standards, such as the “Three-Body Computing Constellation”. The US side, on the other hand, is led by tech giants and startups. Relying on its advantages in the field of chips and commercial space, it is actively exploring various business models. Recently, Starcloud successfully completed big language model training in orbit, marking a substantial milestone in space AI computing.

Core technology bottlenecks are prominent, and engineering is in an aggressive stage. Key technologies such as high-reliability radiation-resistant chips, ultra-high-speed interstellar laser communication, giant energy cooling systems, and in-orbit assembly and maintenance are still major challenges limiting their large-scale deployment and commercial operation.

The industrial chain is long and the distribution of values is concentrated, showing a pattern of steady progress and rapid decline. The upstream hardware sector has the highest technical barriers, covering satellite platforms, special chips, energy and thermal management subsystems, and is a gathering place for current industrial value. The midstream network operation process is accelerating constellation construction and collaborative scheduling between heaven and earth. The downstream application market targets broad scenarios such as remote sensing analysis, global communications, scientific computing, and space-native AI services, and continues to explore value realization paths.

Related targets: Shunhao Co., Ltd. (002565.SZ), Shanghai Port (605598.SH), Qianzhao Optoelectronics (300102.SZ), Changyingtong (688143.SH), Shanghai Shanghai Industrial (603131.SH), Fenghuo Communications (), Aerospace Electronics (Dowager), China Satellite (Shuang), Ucode-W (SUS), etc. 600498.SH 600879.SH 600118.SH 688158.SH

Risk warning: Risk of technological breakthroughs falling short of expectations; risk of capital expenditure and business model; risk of policy and regulatory uncertainty.