The commercial space sector is experiencing a massive surge, with the maritime net-based recovery concept, spearheaded by Hailanxin (300065), emerging as the primary driving force behind the new upward leg in the sector's rally, making related listed companies worthy of attention. For companies that have mastered the DP-2 dynamic positioning system and the active heave compensation system—the two most critical core technologies for a rocket net-based recovery maritime platform—this could be their opportunity to stand out during this main uptrend in the commercial space sector.

It is noteworthy that the breakthrough in the Long March 10B reusable rocket technology marks a historic and pivotal turning point for China's commercial space industry towards large-scale commercial operations! Moreover, this historic value inflection point is deeply dependent on two core technologies of the "Pioneer" rocket net-based recovery maritime platform—the DP-2 dynamic positioning system and the active heave compensation system! Therefore, companies that fully control these two critical core technologies undoubtedly possess the necessary conditions to become the leading stocks in this commercial space rally. Various indications show that with the maritime net-based recovery concept, led by Hailanxin (300065), becoming the main upward thrust in the sector's new phase, related listed companies merit close scrutiny. Those mastering the DP-2 dynamic positioning and active heave compensation systems, key to the rocket net-based recovery platform, may distinguish themselves in this uptrend.

This week's A-share market was volatile, but the most notable event was undoubtedly the sudden collective surge in the commercial space sector on Friday. On July 10th, the Long March 10B carrier rocket was successfully launched from the Hainan Commercial Space Launch Site, achieving a breakthrough in controlled recovery for China's carrier rockets. This technological milestone in reusable rockets is a historic turning point for China's commercial space industry's move towards large-scale commercial operations. Catalyzed by this significant news, the A-share commercial space sector erupted in a frenzy of limit-up gains on Friday afternoon, with over 30 related concept stocks hitting the daily upper limit, including Hailanxin (300065), Julizhuoju (002342), Tongyizhong (688722), Jiufeng Energy (605090), Space Universe (688523), China Satellite (600118), China Satcom (601698), Aerospace Electronics (600879), Aerospace Power (600343), Aerospace Engineering (603698), Aerospace Development (000547), Aerospace Science and Technology (000901), Zhongtian Rocket (003009), Guisheng Co., Ltd. (600992), Great Wall Electrical (600192), Hualing Cable (001208), CSSC Defense (600685), CSSC Technology (600072), COSCO Shipping Special (600428), Shanghai Harbour (605598), Star Net (002829), Goldwind Science & Technology (002202), Junda (002865), Shenjian (002361), Jinlihua Electric (300069), Guolin Technology (300786), Putian Technology (002544), Quectel (603236), Jindi (603270), CITIC Heavy Industries (601608), Guide Infrared (002414), Jia Yuan (301117), Sanwei (002115), UJIT (920943), and H&T (002402).

Industry professionals believe that China's successful implementation of reusable rocket technology has broken the bottleneck of launch cost, formally moving the commercial space sector from thematic narratives to the industrialization realization phase, fully opening a period of high industry prosperity. Everbright Securities stated that the breakthrough in reusable rocket technology is a historic inflection point for commercial space moving towards large-scale commercial operations. Founder Securities views this recovery as enabling a leapfrog development from "0 to 1" technological breakthroughs to "1 to N" scaled applications, making China the second country globally to master rocket recovery and reuse technology. This technology will significantly reduce unit launch costs, accelerate satellite constellation deployment, and holds milestone industrial significance. Against this backdrop, the second major upward wave in the commercial space sector has commenced!

Key Drivers of the Current Rally

A key point to note is that the leading theme of this new commercial space rally is directly linked to the narrative of the Long March 10B's successful recovery on a maritime platform. Consequently, the maritime net-based recovery concept, led by Hailanxin (300065), has become the dominant theme driving this sector rally.

Market analysts explain that the rapid initiation of this new rally is entirely triggered by the commercial space industry reaching a historic new value inflection point. The main difference from the previous rally is that companies related to the maritime net-based recovery concept, spearheaded by Hailanxin (300065), have undoubtedly become the core targets of this new upward phase.

Indeed, several maritime net-based recovery concept stocks, including Hailanxin (300065), Julizhuoju (002342), Tongyizhong (688722), Jiufeng Energy (605090), CSSC Defense (600685), CSSC Technology (600072), Nanshan Zhishang (300918), Gaohua Technology (688539), Chaojie (301005), Taisheng Wind Power (300129), and CITIC Heavy Industries (601608), stood out on Friday, indicating that major institutional funds are already accumulating positions in the latest focal point of the commercial space sector: rocket net-based maritime recovery.

Various signs indicate that with the maritime net-based recovery concept, led by Hailanxin (300065), becoming the main upward thrust, related listed companies deserve attention. Companies mastering the DP-2 dynamic positioning and active heave compensation systems may distinguish themselves in this commercial space uptrend.

Breakthrough Details and Technological Innovation

Commercial space has reached a historic key value inflection point towards large-scale commercial operations! Against this backdrop, the sector saw a collective surge on Friday, with the maritime net-based recovery concept, led by Hailanxin (300065), firmly establishing itself as the leading theme.

According to official sources, on July 10, 2026, the Long March 10B carrier rocket lifted off from the Hainan Commercial Space Launch Site. Approximately six minutes after stage separation, the first stage vertically returned and was successfully recovered on a maritime recovery platform.

This marks China as the second country globally, after the United States, to master large-payload reusable rocket technology, and the first globally to master carrier rocket net-based recovery technology.

The highlight of this launch was the validation of China's pioneering maritime net-based recovery technology, charting a completely different technical path from the United States.

Currently, most reusable rockets worldwide employ landing leg schemes. The Long March 10B rocket, leveraging its large scale and China's strong ground infrastructure capabilities, proposed a "rocket-ground coordination, simplified rocket" approach, designing a net-based recovery scheme.

The net-based recovery scheme essentially involves high-precision coordinated matching between the rocket and the ship in a dynamic state. The "ship" must find the "rocket," and the "rocket" must find the "ship," akin to two objects with their own six degrees of freedom completing a high-dynamic "docking" under wave disturbance.

Experts describe this process as a precise "bidirectional rendezvous" between the rocket and the maritime recovery platform, where both cooperate to achieve precise entry into the net.

Clearly, the Long March 10B follows a completely different technical route from SpaceX's Falcon 9, namely a "legless net capture" scheme. It eliminates heavy landing legs, saving about 2 tons in weight, and instead uses a Y-shaped hook at the rocket's base, captured by a flexible arresting net on the "Pioneer" recovery vessel. The principle is somewhat similar to aircraft carrier landings but with greater difficulty—accurately "dropping" from space into a large net at sea.

Net-based recovery has unique advantages. It simplifies rocket structure, eliminating complex landing legs, thereby reducing weight and increasing payload capacity and efficiency. Additionally, this method has strong adaptability to landing point deviations and can be serially designed for rockets of different scales.

Thus, net-based recovery represents a bold innovation by China's space industry in reusability, commencing the "maritime dance between rocket and ship," which will gradually support China's path towards low-cost, high-frequency, and sustainable space access.

Academic experts note that the net-based recovery technology adopted by the Long March 10B achieves a breakthrough in payload efficiency through structural weight reduction. Compared to traditional leg landing, this scheme can significantly reduce rocket deadweight, theoretically compressing single-launch costs to below 40% of current levels, truly achieving a leap from expensive space launches to cheap space transport.

After all, rocket reusability means a cliff-like drop in launch costs. Estimates suggest the Long March 10B's single-launch cost in reusable mode could be reduced by over 40%. After stable reuse of the first stage, hardware costs could fall to within 30% of original levels.

The first stage accounts for over 60% of a rocket's total cost. Traditional expendable rockets see this hardware sink into the ocean, a core pain point limiting large-scale satellite internet constellation deployment in China. Industry calculations indicate that after stable first-stage reuse, single-launch hardware costs could drop to within 30% of original levels, with overall launch cost reductions exceeding 50%. Compared internationally, SpaceX, relying on first-stage recovery and reuse, compressed cost per kilogram to orbit from tens of thousands of dollars to under $3,000, supporting the deployment of tens of thousands of satellites. The Long March 10B's net-based recovery scheme shows even greater long-term reuse potential, with domestic launch costs potentially dropping from 50,000 RMB/kg to under 25,000 RMB/kg upon maturity, moving towards the ten-thousand RMB level in the long term.

Cost reductions are essential to unlock market potential.

For instance, in satellite deployment, the US deployed 3,725 satellites in 2024, while China deployed 371. The gap stems mainly from SpaceX's "Starlink" constellation batch deployment capability. Now, domestic constellations plan to launch tens of thousands of satellites. With maritime net-based recovery proven viable, the bottleneck of "more satellites than rockets" is being addressed.

Statistics show China's commercial satellite market size grew from 18.07 billion RMB in 2020 to 59.292 billion RMB in 2024 and is projected to reach 734.488 billion RMB by 2030, with a CAGR of 54.71%.

Institutions widely believe that with the breakthrough in reusable technology, China will effectively alleviate the development bottleneck of "more satellites, fewer rockets" and insufficient launch capacity. The commercial space industry chain will also enter a new development stage of cost reduction, efficiency improvement, and scale realization, potentially ushering in a grand space era.

Core Platform and Key Companies

It is worth noting that the recovery was carried out by China's first rocket net-based recovery maritime platform, the "Pioneer," built by CSSC Guangzhou Shipyard International Co., Ltd. in collaboration with the Chinese Academy of Sciences' Institute of Deep-sea Science and Engineering for the China Academy of Launch Vehicle Technology.

The "Pioneer" is a massive vessel with DP-2 dynamic positioning capability, able to maintain a preset position or heading in challenging sea conditions, serving as a stable, precise mobile landing field at sea combined with the net-based recovery system.

As the core equipment, the "Pioneer" is China's first such platform and the first to receive classification and statutory certificates from the China Classification Society (CCS). The R&D team overcame multiple world-class technical challenges, filling domestic gaps and demonstrating China's strong innovation capabilities in high-end marine engineering equipment.

In other words, the "Pioneer," a command and control vessel worth 458 million RMB, acts as the "brain" and "eyes" of the entire recovery system. It ensures the rocket can see clearly, be controlled accurately, and land stably during its return. Its role is crucial, akin to a "pacemaker" in the space industry.

Evidently, the "Pioneer" rocket net-based recovery maritime platform is the core key to achieving China's breakthrough in controlled rocket recovery. Public information shows that related A-share listed companies, led by Hailanxin (300065), are actively engaging in this rocket net-based maritime recovery track.

Hailanxin (300065), having won the 458 million RMB "command and control vessel" project for Hainan Commercial Launch, is seen as the only pure A-share counterpart to "SpaceX maritime recovery," undertaking the role of the recovery system's "nerve center." The company is deeply tied to the core link of the Long March 10B's maritime net-based recovery, responsible for the "Pioneer" command and control hub.

Julizhuoju (002342) is the manufacturer of China's first recoverable rocket capture arm, with business covering the rocket's entire lifecycle from manufacturing, assembly, and transport to launch and recovery. The company is the sole domestic supplier of the complete well-type arresting net and 200-ton class capture arm, exclusively supporting the "Pioneer" recovery vessel.

CSSC Defense (600685), through its subsidiary Guangzhou Shipyard International, built the domestic first dedicated rocket recovery vessel "Pioneer," featuring DP dynamic positioning, an anti-wave hull structure, and a dedicated recovery deck design to meet the high-precision berthing and operational requirements of net-based recovery, serving as the physical carrier for maritime recovery.

CSSC Technology (600072) was deeply involved in key aspects of the domestic first rocket net-based recovery maritime platform "Pioneer," responsible for its design, DP-2 level dynamic positioning system, structural optimization, and other technical solutions.

Gaohua Technology (688539) is a long-term designated sensor supplier for the China Academy of Launch Vehicle Technology, supporting the entire process of testing and the formal flight mission for this recovery's maiden model.

CITIC Heavy Industries (601608) has developed capabilities in design, manufacturing, integration, installation, and full-chain services for maritime recovery systems. The company serves as the lead unit for the Long March 10B carrier rocket's maritime net-based recovery system, undertaking joint design and manufacturing, main equipment supply, and installation and commissioning contracts.

Tongyizhong (688722), as a leader in ultra-high molecular weight polyethylene fiber, provides core base material for the net-based recovery arresting net, with strength 15 times that of steel, lightweight, and impact-resistant.

Nanshan Zhishang (300918) supplies ultra-high molecular weight polyethylene fiber for the main load-bearing cables of the rocket recovery net, with single-cable load capacity up to 200 tons and weight only 1/15th of steel, a core material for net-based recovery.

Jiufeng Energy (605090), as the only A-share company deeply supporting the Wenchang Commercial Space Launch Site with special fuels and gases, has invested in a dedicated base supplying liquid oxygen, liquid hydrogen, liquid methane, helium, and other rocket propellants.

Chaojie (301005) provides marine-grade titanium alloy bolts for fixing rocket buffer legs. These bolts have undergone maritime testing and are critical for recovery safety.

To address high impact forces from platform sway during maritime recovery, Taisheng Wind Power (300129) developed a special honeycomb energy-absorbing buffer structure, reducing landing impact to one-third of traditional supports and significantly improving landing stability on unstable sea platforms.

Zhenhua Heavy Industries is the A-share listed company that simultaneously masters both the DP-2 dynamic positioning system and the active heave compensation system—the two most critical core technologies for a rocket net-based recovery maritime platform. The company is the third winning bidder for the reusable rocket maritime recovery system vessel project for the Hainan Commercial Space Launch Site. Moreover, its independently developed Z-DP series DP2 level ship dynamic positioning control system passed inspection and obtained the CCS DP-2 level type approval certificate.

Critical Technologies Underpinning the Inflection Point

It must be recognized that the historic key value inflection point for commercial space moving towards large-scale operations is deeply dependent on two core technologies of the "Pioneer" platform: the DP-2 dynamic positioning system and the active heave compensation system.

In principle, the rocket maritime net-based recovery platform relies on the synergy of multiple key technologies.

First, the high-precision positioning of the "Pioneer" relies on the Dynamic Positioning (DP) system, which allows the recovery vessel to maintain a stable position with an error ≤5 meters under complex sea conditions like wind, waves, and currents—the foundation for recovery.

Second, precise rocket guidance and landing require the rocket body to be equipped with "Beidou/GNSS integrated navigation + attitude control engines" to achieve closed-loop trajectory control from in-orbit separation to the maritime platform, with landing accuracy needing to be controlled at the centimeter level to avoid deviation.

Third, the recovery capture and buffering环节 involve "grid fins" for attitude adjustment and speed reduction stabilization, "capture arm/recovery net" to catch the rocket body and avoid hard landing damage, and "energy-absorbing buffer devices" to counteract landing impact.

Finally, post-recovery processing encompasses technologies for anti-shock, anti-corrosion packaging for maritime transport of the rocket body, component aging assessment after recovery, and safe disassembly of fuel systems.

Therefore, as the foundation of the maritime net-based recovery platform, the Dynamic Positioning (DP) system is undoubtedly the most critical环节 of the entire maritime recovery system!

The DP system is a closed-loop control system that maintains a preset position or heading by monitoring position deviations in real-time and using its own thrusters to counteract environmental disturbances like wind, waves, and currents.

After all, any maritime platform relies on the ability to "stand firm," and the DP system is its backbone.

The rocket descends rapidly, and the maritime net-based recovery platform needs to align precisely with the landing point in complex sea conditions to avoid collisions and deviations. The DP system must lock the platform's position within a precision range of ±0.5 meters and have dynamic response capabilities from DP-2 to DP-3 level.

Hailanxin (300065), through its wholly-owned subsidiary Hainan Out, provides an AI dynamic positioning system already used on domestic aircraft carriers and large destroyers. Hainan Out's DP positioning system is primarily applied to maritime rocket recovery command and control vessels and marine engineering operation platforms, serving as the core "nerve center" in maritime net-based recovery missions.

CSSC Technology (600072) provides DP2/DP3 level dynamic positioning system (DPS) engineering integration and overall solutions for maritime recovery platforms, ensuring the platform "nails" its position amidst wind and waves, acting as a core hardware-level DPS supplier.

Zhenhua Heavy Industries' independently developed active heave compensation gangway represents the highest domestic level in this field, and the company continues to promote technological iteration of active heave compensation gangways suitable for rocket maritime recovery platforms.

The Second Core Technology: Active Heave Compensation System

The other core key technology of the "Pioneer" maritime recovery vessel is the active heave compensation system. It can sense wave起伏 in real-time and adjust the net's position via hydraulic mechanisms to ensure the relative speed between the rocket body and the net is near zero at the moment of capture.

A heave compensation system is used on offshore operation platforms, vessels, or marine engineering equipment to counteract hull motions like heave, roll, and pitch caused by waves through active or passive technology, ensuring the safety and stability of operations like lifting, transfer, and drilling, and keeping suspended loads, underwater equipment, or gangway ends relatively stable. Its core goal is to reduce or eliminate the impact of vertical vessel motion caused by waves on the load.

Heave compensation technology originated in the United States. Through persistent efforts by industry, academia, and research units, China has successfully broken through core technical bottlenecks and gradually built a system of heave compensation equipment with independent intellectual property rights.

Maritime heave compensation cranes, known as Active Heave Compensation Cranes (AHC), are key equipment for maritime rocket recovery. This type of crane uses high-precision sensors to perceive vessel or platform motion in real-time and drives hydraulic or electric systems for反向 compensation, ensuring the hook load remains relatively stationary under wave action, achieving precise and safe lifting operations.

China's "Pioneer" maritime rocket recovery platform is equipped with a DP-2 dynamic positioning system and active heave compensation装置, capable of maintaining positioning accuracy within ±0.5 meters under sea conditions with significant wave heights up to 3 meters and wind speeds of 15 m/s, providing a stable platform for rocket landing.

Thus, active heave compensation technology effectively improves the success rate and safety of maritime rocket recovery, reduces the impact of waves on landing accuracy, enables precise landing under complex sea conditions, and is a vital component of maritime rocket recovery technology.

Therefore, the historic key value inflection point for commercial space moving towards large-scale commercial operations is deeply dependent on two core technologies of the "Pioneer" rocket net-based recovery maritime platform—the DP-2 dynamic positioning system and the active heave compensation system!

Consequently, companies that fully master these two critical core technologies undoubtedly possess the necessary conditions to become leading stocks in this commercial space sector rally.

Spotlight on a Key Player

Against the backdrop of the maritime net-based recovery concept, led by Hailanxin (300065), becoming the main upward thrust, Zhenhua Heavy Industries, as the A-share company simultaneously mastering both the DP-2 dynamic positioning system and the active heave compensation system—the two most critical core technologies for a rocket net-based recovery maritime platform—is poised to stand out in this commercial space rally.

Reportedly, the company has long dominated the global port machinery sector, maintaining a global market share of over 70% for quay cranes. Its business comprises traditional port machinery, smart ports and automation, offshore engineering equipment (primarily offshore wind power), and the rocket maritime net-based recovery segment within commercial space, showing steady expansion in traditional business and accelerated growth in emerging sectors.

Public information indicates the company is indeed involved in the R&D and manufacturing of heavy maritime recovery equipment in the commercial space field, with its core business focusing on maritime recovery vessel construction and heavy structural components for rocket launches.

According to official responses, its core businesses are port machinery, offshore engineering equipment, and steel structures. Its role in commercial space primarily involves providing heavy marine engineering equipment (e.g., recovery vessels, crane vessels) and large steel structure配套 (e.g., launch platform walking devices).

1. EPC Contracting for Maritime Recovery Vessels

The company is the third winning bidder for the reusable rocket maritime recovery system vessel project for the Hainan Commercial Space Launch Site. The project, announced in February 2025, involves a bid of approximately 2.94 billion RMB and a 671-day construction period, aiming to build a specialized vessel for full-process rocket maritime recovery operations.

2. Heavy Lifting and Active Heave Compensation Technology

The company possesses a 30-ton deep-sea active heave compensation deck crane and a 400-ton heave compensation telescopic crane, capable of stable operation under sea state 4 conditions, suitable for precise lifting of rocket bodies and equipment maintenance on maritime net-based recovery platforms. Its flagship equipment, the "Zhenhua 30" full-revolving crane vessel, can also be used for the construction and heavy component lifting of maritime net-based recovery platforms.

3. Supporting Structural Components for Maritime Launch Platforms

In the rocket launch field, the company is a major domestic supplier, providing the turning walking device for space activity launch platforms. This device has served the transport and launch of the Long March 7 rocket, achieving precise movement from the assembly building to the launch pad (positioning accuracy ±5mm). The company is the listed entity that masters rocket launch platform turning walking technology, which has been applied in the vertical transfer环节 of Long March series rockets.

Thus, in the commercial space direction, the company leverages its port machinery and offshore engineering积累 to enter the rocket maritime net-based recovery track. Its turning walking platform technology is domestically exclusive, with independent mastery of electronic control and hydraulic systems, comprehensive performance loss controlled within 7%, and manufacturing precision at the millimeter level. This technology has been adapted for new-generation carrier rockets including the Long March 7 and 8 series, meeting vertical testing and transport requirements.

Moreover, the company is not only the third winning bidder for the Hainan Commercial Space Launch Site's reusable rocket maritime recovery system vessel project, but its参股 subsidiary also won a bid in July 2025 for a non-self-propelled maritime recovery vessel construction project under the same program, with cumulative中标 contract amounts reaching 5.24 billion RMB.

Company's Technological Edge and Market Position

As mentioned, the leading theme of the current commercial space rally is directly linked to the Long March 10B's successful recovery on a maritime platform, with the maritime net-based recovery concept, led by Hailanxin (300065), firmly established as the main driver.

The two core key technologies of the "Pioneer" platform are the DP-2 dynamic positioning system and the active heave compensation system. Zhenhua Heavy Industries is the A-share company that masters both.

The "Pioneer" is China's first maritime rocket recovery platform to receive CCS classification and statutory certificates. As a global leader in offshore engineering equipment, the company's independently developed Z-DP series DP2 level ship dynamic positioning control system has passed inspection and obtained CCS DP2 level type approval, marking a critical step in its R&D and industrial application.

Relying on core equipment like the "Zhenhua 30," the company possesses EPCI总承包 capabilities and participated in bidding for the Hainan Commercial Space Launch Site's maritime recovery vessel project, demonstrating its important role in maritime space launch and recovery infrastructure construction.

As the world's largest full-revolving crane vessel, the "Zhenhua 30" has powerful heavy component lifting capabilities and is equipped with a dynamic positioning system and heave compensation technology, enabling stable operation in complex sea conditions and providing equipment support for the full process of reusable rocket maritime recovery.

Heave compensation technology is a key支撑 for rocket maritime recovery. In the Long March 10B's successful controlled recovery mission, this technology played a核心 role.

The company has made significant breakthroughs in heave compensation technology, successfully independently developing a domestic active heave compensation gangway, breaking foreign monopolies on this high-end offshore equipment. This equipment is not only a core component for offshore wind power operation and maintenance vessels but also key for maritime rocket recovery,主要用于 overcoming hull displacement caused by waves.

Notably, the company's independently developed active heave compensation gangway represents the highest domestic level, featuring key characteristics like dual-mode搭接 capability, high sea state adaptability, intelligent sensing and compensation, and lightweight & high efficiency.

In recent years, the company has continued to promote technological iteration of active heave compensation gangways suitable for rocket maritime recovery platforms, has launched a 30-meter extended upgraded model, and is accelerating布局 for全电力驱动 new-generation solutions. Its heave compensation technology also extends to deep-sea cranes.

Additionally, the company successfully developed China's first 30-ton deep-sea active heave compensation deck crane, filling a domestic R&D gap and breaking foreign technological monopolies.

Overall, the company's market is evolving in layers: traditional port machinery is around $22 billion, growing steadily; smart ports are expanding towards a $15 billion scale with high profitability and rapid growth; offshore wind power forms a new multi-billion-dollar market; rocket maritime recovery presents immense market potential from 2026 to 2030, becoming a potential blue ocean in commercial space equipment. The industry's profit重心 is shifting from hardware manufacturing to digitalization, energy transition, and space equipment, with business models evolving from selling "tons of steel" to providing systems, services, and technological solutions. The company is transitioning from an equipment manufacturer to a comprehensive service and high-end equipment provider, demonstrating稳健 growth and structural flexibility across multiple sector cycles.