The Zhitong Finance App learned that Guotai Junan released a research report saying that on January 19, the first flight test of the Blue Rocket Space Suzake-3 reusable rocket vertical return technology was completed. The launch cost can be reduced by 80 to 90 percent compared to single-use rockets. Currently, many other companies in China have launched related products. Focus on the commercial aerospace industry chain, and related companies are expected to benefit. Recommended targets: China Aviation Optoelectronics (002179.SZ), Aerospace Appliances (002025.SZ); Beneficial targets: China Satellite Communications (601698.SH), Aerospace Electronics (600879.SH).

Incident: On January 19, Suzake-3's reusable rocket vertical return technology completed its first flight test at the Jiuquan Satellite Launch Center in China. The test was completed by the Blue Rocket Aerospace VTVL-1 test arrow, which verified the rocket's vertical recovery capability at low altitude and low speed, the compatibility between the control system and engine propulsion performance, and the guidance control algorithm for vertical rocket recovery.

Guotai Junan's views are as follows:

Liquid oxymethane engines are an important direction for the development of liquid propulsion, and SpaceX has taken this route.

Worldwide, liquid oxymethane rockets have entered a period of rapid development. Facing future large-scale entry and exit space and flight transportation needs, liquid oxymethane engines with high thrust, high performance, and reusable liquid oxygen methane engines are an important direction for liquid main power development. On April 20, 2023, the SpaceX “Starship” system took off from Texas loaded with more than 4,500 metric tons of propellant to carry out its first orbital test mission. It exploded shortly after lift-off. The “Starship” system is considered to be the most powerful launch vehicle ever, with an overall height of 120 meters, a diameter of 9 meters, and a carrying capacity of up to 150 metric tons when fully reusable. The first-class “overweight” rocket is equipped with 33 “raptor” engines, and the second-class “Starship” spacecraft is equipped with 3 “raptor” engines and 3 “raptor vacuum” engines. The “Raptor” engine uses liquid oxymethane propellant, and the thrust is twice that of the SpaceX Falcon 9 rocket “Merlin” engine. Methane in the Martian atmosphere allows SpaceX to one day refuel “Starships” on Mars.

Reusable spacecraft can greatly reduce space launch costs, and many enterprises in China are currently actively exploring them.

At the “Starship” press conference held in Boca Chica, Texas in February 2022, Musk said that the “Starship” spacecraft can be reused in 6-8 hours, so it can be launched 3 times a day, and the “overweight” rocket booster can return 6 minutes after launch, and can be launched about once every hour. Rapid reuse also means lower costs. “Each flight could be as little as a few million dollars, or maybe as little as $1 million.” Musk said that measured by space standards, this price is ridiculously low. The Suzake-3 reusable rocket is China's first stainless steel liquid launch vehicle, using liquid methane as fuel. Suzake-3's arrow body is 4.5 meters in diameter. The first-stage design is reused no less than 20 times, and has the ability to launch multi-star and tablet-stacked satellite clusters with one arrow. The Suzake-3 tank structure is made of high-strength stainless steel, and the launch cost can be reduced by 80 to 90 percent compared to a single-use rocket. Blue Rocket Space Suzake-3 is not the only private reusable rocket in China. In December 2023, also at the Jiuquan Satellite Launch Center, Interstellar Honor's Hyperbola 2 Reusable Liquid Methane Verification Rocket (SQX-2Y) successfully completed its second flight test.

Risk warning: China's commercial aerospace industrialization progress falls short of expectations.