A leading commercial space company has announced a return to profitability, with its shares hitting the daily upward limit on Friday.

China Satellite Communications Co., Ltd. (stock code: 600118) announced on the 12th that it expects a net profit attributable to shareholders of the listed company of 305 million to 365 million yuan for the first half of 2026. Compared with the same period last year, this represents a year-on-year turnaround from loss to profit. The company also forecasts a net profit attributable to owners of the parent company after deducting non-recurring gains and losses in the range of 267 million to 320 million yuan for the same period.

Key Drivers of the Profit Forecast

The company attributed the expected profit primarily to its efforts in the first half of 2026. It fully advanced the research, production, and management of key satellite models. The number of contract fulfillment milestones for satellite development projects that met acceptance criteria increased compared to the same period last year, leading to a corresponding rise in revenue and profit. Concurrently, the company's satellite application business maintained steady development. These factors are expected to result in a profitable first half of 2026.

The company is focusing on integrated applications in communications, navigation, and remote sensing. It is deepening the restructuring of its systems and the reshaping of its capabilities to accelerate business transformation. Efforts will be intensified to advance the implementation of key projects and the delivery of tasks. The company aims to explore new avenues in areas such as aerospace manufacturing and satellite applications, speed up relevant business transformations, and continuously strengthen cost management and risk prevention to drive high-quality development.

According to its official website, the company is a listed entity controlled by the Fifth Academy of China Aerospace Science and Technology Corporation. It is a high-tech aerospace enterprise specializing in the development of small and micro-satellites, the manufacturing of satellite ground application systems and equipment, and satellite operation services.

As of the market close on July 10th, the latest share price for China Satellite Communications Co., Ltd. was 90.02 yuan per share, with a total market capitalization of 106.4 billion yuan.

Industry Catalyst

In related industry news, a significant technological milestone was achieved. The Long March 10B carrier rocket was launched from the Hainan Commercial Space Launch Site. Approximately six minutes after stage separation, the first stage performed a controlled vertical return and was successfully recovered on a sea-based platform. This marks China's first successful controlled recovery of a carrier rocket's first stage and is also the world's first net-based recovery of a carrier rocket stage.

Market Reaction

Boosted by this positive development, the A-share commercial aerospace sector experienced a sharp upward movement in afternoon trading on July 10th. Multiple stocks, including Hailanxin, Jiayuan Technology, Jinlihua Electric, Shenjian Co., Ltd., China Satcom, Aerospace Development, and Aerospace Engineering, surged to their daily price limits.