In-depth Investment Research Report on Commercial Aerospace: Yinhe Electronics (002519) vs Juli Sling (002342)

I will now provide you with a detailed comparative analysis report.

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From December 25 to 31, 2025, China formally submitted applications to the International Telecommunication Union (ITU) for frequency and orbital resources for a total of approximately 203,000 low-Earth orbit (LEO) satellites, covering 14 independent satellite constellations. This is China’s largest concentrated international frequency-orbit application action to date[1][2]. Prior to this, China’s cumulative number of applied satellites was approximately 50,000, and this application volume has directly quadrupled, marking the full acceleration of China’s strategic layout in the LEO satellite Internet field.

This application presents the dual characteristics of “large-scale occupation” and “diversified participation”. The Research Institute of Radio Spectrum Development, Utilization and Technological Innovation (Radio Innovation Institute) applied for 96,714 satellites each for the two constellations CTC-1 and CTC-2, totaling 193,428 satellites, accounting for more than 95% of the total scale; other applicant entities include China Satellite Network Group, China Mobile (2,520 satellites), Yuanxin Satellite (1,296 satellites), Guodian Gaoke (1,132 satellites), etc.[1][3].

According to the ITU Radio Regulations, the first satellite must be launched within 7 years (by the end of 2032), 10% of the deployment must be completed in the 9th year, and full deployment must be completed in the 14th year. However, considering international coordination factors, the final approved scale by ITU may be 30%-50% of the application volume (approximately 60,000-100,000 satellites), and the actual implemented scale may be 20%-30% of the approved quantity (approximately 12,000-30,000 satellites)[1].

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Yinhe Electronics’ main business covers three sectors: new energy, artificial intelligence, and intelligent electromechanics. According to the 2025 semi-annual report, the new energy business and intelligent electromechanics business each account for approximately 45% of revenue, but it is caught in a dilemma: the gross profit margin of the intelligent electromechanics business (mainly military-oriented) has dropped from over 40% previously to 22.98%, and the gross profit margin of the new energy business is only 4.17%[4].

The company has cut into satellite user terminal and satellite manufacturing businesses by investing in Gespace. Its affiliated company GalaxySpace is a leading satellite Internet solution provider and satellite manufacturer in China, and has built China’s first LEO broadband communication test constellation “Little Spider Web”[4]. The company stated on the interactive platform that it will continue to pay attention to other business opportunities in commercial aerospace to promote the company’s sustainable development.

The company faces multiple risks:

• Sustained revenue contraction: Only RMB 332 million in the first three quarters of 2025, a year-on-year decrease of 59.12%[4]
• Net loss of RMB 50 million after deducting non-recurring gains and losses, with ROE of -37.43% after deduction[0]
• Its subsidiary Tongzhi Electromechanics has been disqualified from military equipment procurement for all military branches for 36 months due to contract pricing issues in specific fields, with zero new orders
• A qualified opinion was issued for its 2024 annual report, and the accounting firm questioned the authenticity and recoverability of some of its assets[4]
• Operating cash flow remains tight, with a net outflow of RMB 113 million in the first three quarters

Currently, MACD has a death cross signal (bearish), the KDJ indicator has a K value of 29.4 and D value of 53.4 (bearish), the stock price is in a sideways consolidation phase, with a reference trading range of [$7.56, $8.34], and a Beta coefficient of 0.47[0].

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Juli Sling is the leading enterprise in China’s sling industry, with its main business being the R&D and manufacturing of hoisting slings and steel wire ropes. As a traditional industrial supporting enterprise, the company has long provided special hoisting and fixing solutions required for rocket transfer and satellite assembly to China Aerospace Science and Technology Corporation (CASC) and other entities[5].

The company is the only A-share listed company officially confirmed to provide core products for “rocket net-based recovery”, directly supplying “capture arm devices” and “test sling devices”[5]. In the first rocket net-based recovery achieved during the sea launch of the Long March 10A in January 2026, the company’s products played a key role. This technology can enable the reuse rate of the first-stage rocket to reach over 95%, reducing the full-life-cycle launch cost by 70%-90%[5].

• Revenue of RMB 1.743 billion in the first three quarters of 2025, a year-on-year increase of over 13%[4]
• Achieved a net profit of RMB 6 million after deducting non-recurring gains and losses, successfully turning losses into profits
• ROE of -1.28% after deduction, which is healthier compared to Yinhe Electronics
• P/E ratio of -314.32 (due to negative net profit), price-to-sales ratio of 4.05x

MACD has no cross (bullish), the KDJ indicator has a K value of 46.9 and D value of 66.1 (bearish), the stock price is in a sideways consolidation phase, with a reference trading range of [$9.70, $10.64], and a Beta coefficient of 0.44[0].

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Dimension	Yinhe Electronics	Juli Sling
Aerospace Business Positioning	Strategic bet, active entry with in-depth binding	Taking orders as a natural extension, stable supporting supplier
Core Products	Satellite user terminals, satellite ODM manufacturing	Rocket transfer hoisting, satellite assembly fixing, recovery capture arms
Customer Structure	Undertakes manufacturing for the “Qianfan Constellation” through Gespace	Core supplier to national teams such as CASC
Business Proportion	Not yet converted into actual orders or revenue	Limited but stable scale, serves as an incremental boost
Technology Migration	Military-grade power supply and distribution, radiation-resistant technology migrated to satellite energy systems	Industrial hoisting technology extended to aerospace launch site supporting facilities

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Evaluation Dimension	Yinhe Electronics	Juli Sling
Commercial Aerospace Substantiveness	★★☆☆☆ (Concept-focused)	★★★★☆ (Officially confirmed supplier)
Fundamental Health	★★☆☆☆ (High risk)	★★★☆☆ (Relatively robust)
Valuation Rationality	★★☆☆☆ (Overvalued)	★★★☆☆ (Reasonable)
Investment Risk Level	High-risk, high-elasticity	Low-volatility defensive

• Short-term speculative investors with high risk appetite
• Investors who are optimistic about the commercial aerospace industry’s boom and are willing to bear high uncertainty in exchange for potential high returns
• Investors who will pay attention to the follow-up order implementation and the progress of resolving audit issues

• Medium- to long-term investors pursuing certainty
• A stable allocation choice for investors who are optimistic about the recoverable rocket technology route and the development of China’s commercial aerospace
• Investors who will pay attention to incremental orders brought by the promotion of net-based recovery technology

• Valuation bubbles emerge in the commercial aerospace sector, with the average P/E ratio reaching as high as 96x before the decline, and some individual stocks exceeding 1,000x[6]
• Tighter regulation: the Shanghai Stock Exchange has issued regulatory warnings to multiple companies, and information disclosure issues have triggered market concerns[6]
• Satellite launch progress may be lower than expected; as of December 2025, 136 satellites of the GW Constellation and 108 satellites of the Qianfan Constellation are in orbit[1]

• Yinhe Electronics: Sustained contraction of main business, qualified audit opinion, restricted subsidiary business, tight operating cash flow
• Juli Sling: Limited proportion of aerospace business, little impact on overall performance, and also has the attribute of concept speculation

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From the perspective of commercial aerospace investment,

has higher investment value in the current stage for the following reasons:

1. Substantive Business:
   As a core supplier of rocket net-based recovery technology, its products have been applied in actual launch missions, with verifiability and irreplaceability

2. More Robust Fundamentals:
   Revenue growth, turning losses into profits, and operating conditions are significantly better than Yinhe Electronics

3. More Controllable Risks:
   Although it also benefits from concept speculation, the company has its traditional sling business as a safety cushion and will not fall into trouble due to the failure of its aerospace business

4. More Reasonable Valuation:
   A price-to-sales ratio of 4.05x, which is more attractive compared to Yinhe Electronics’ 185.91x

On the other hand,

is suitable for investors with high risk appetite for short-term speculation. Its commercial aerospace layout is imaginative, but it is necessary to closely follow the follow-up order implementation and the resolution of financial issues. Currently, commercial aerospace is still in the early stage, and investors should be patient, abandon the speculative mentality of chasing gains and selling losses, and adhere to the concept of long-term value investment[6].

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[1] ESM China - “203,000 Satellites! China’s Single LEO Satellite Application Sets a Global Record” (https://www.esmchina.com/news/13831.html)

[2] Securities Times - “Over 200,000 Satellites! China Submits Multiple New Constellation Plan Applications, Commercial Aerospace Triggers Another Limit-Up Wave” (https://www.stcn.com/article/detail/3588728.html)

[3] Xinhua News Agency - “China Submits Applications for Over 200,000 Additional Satellites” (https://www.news.cn/tech/20260112/fcfaf74691dc49d9b1d7d99cac61b3bb/c.html)

[4] Eastmoney Wealth Account - “Commercial Aerospace Booms! Yinhe Electronics VS Juli Sling, Who Is Down-to-Earth?” (https://caifuhao.eastmoney.com/news/20260120174435789614050)

[5] Eastmoney Wealth Account - “China’s Pioneering Rocket Recovery Black Technology Surpasses SpaceX, Juli Sling Is the Core Company of ‘Net-Based Recovery Technology’” (https://caifuhao.eastmoney.com/news/20251227133514186527300)

[6] Economic Daily - “Don’t Let Concept Speculation Mislead Commercial Aerospace” (http://paper.ce.cn/pc/content/202601/20/content_327063.html)

[0] Jinling AI Financial Database (Real-time Market Data and Financial Analysis)