Addsino Technology (000547) In-depth Analysis of Commercial Low-Orbit Satellite Business

According to the latest data [0], Addsino Technology’s current market capitalization is

(approximately RMB 320 billion), and its stock price performed extremely strongly in 2025, with a . However, the valuation level shows a significant “growth stock premium” feature:

• P/B Ratio
  : 9.58x (far higher than traditional military enterprises)
• P/E Ratio
  : -28.07x (negative due to losses)
• EV/OCF
  : 132.25x (extremely high enterprise value/operating cash flow multiple)

The company is currently in a

[0]:

Financial Indicator	Value	Analysis
ROE (Return on Equity)	-32.55%	Severe loss, in investment phase
Net Profit Margin	-67.50%	Weak profitability
Operating Profit Margin	-75.32%	Core business loss
Current Ratio	1.34	Short-term solvency is acceptable
Quick Ratio	0.92	Cash flow situation needs attention

Figure1: Addsino Technology Comprehensive Analysis

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Based on the information provided and the company’s public data, Addsino Technology’s business structure is as follows:

Business Segment	Revenue Share	Strategic Position
Aerospace Defense Information Technology	~45%	Core business, stable cash flow source
Blue Army System and Equipment	~30%	Core military informatization business
Next-generation Communication and Command Equipment	~20%	Military-civil fusion field
Commercial Low-Orbit Satellite	<1%	Strategic incubation, future growth engine
Others	~4%	Auxiliary business

Although the commercial low-orbit satellite business currently accounts for less than 1% of revenue, its impact on long-term valuation is reflected in the following dimensions:

• Current contribution to revenue and profit is almost negligible
• But already reflected in the stock price as a
  “call option”
  pricing
• Explains why the company has severe losses but a high P/B Ratio of 9.58x

• If the business expands successfully, revenue share is expected to rise to
  10-15%
• May become a key catalyst for valuation re-rating
• High-growth business can support higher valuation multiples

• Satellite internet and data application services are national strategic directions
• Addsino Technology relies on the background of China Aerospace Science and Industry Corporation and has unique advantages
• Expected to transform from a pure military enterprise to a “military + commercial aerospace” dual-drive model

Based on option pricing thinking, we can construct a simplified valuation framework:

Enterprise Value = Main Business DCF Value + Commercial Satellite Business Option Value - Risk Discount

• Main Business (Military Informatization): Using DCF valuation, growth rate of 8-12%
• Commercial Satellite Business: Using real option method, success probability of30-50%
• Risk Adjustment: Technical risk, market risk, policy risk

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The commercial low-orbit satellite and data application market presents a pattern of

:

Market Participant	Market Position	Core Advantage	Growth Potential
China Satcom	Leader (35%)	Satellite communication license, resource advantage	★★★☆☆
GalaxySpace	Challenger (20%)	Leading low-orbit satellite technology	★★★★☆
Addsino Tianmu (Addsino Technology)	New Entrant (15%)	Military background, data application capability	★★★★★
9SkySat	Niche Area (15%)	IoT application	★★★★☆
Others	15%	Differentiated competition	-

Figure2: Commercial Low-Orbit Satellite Market Competitive Landscape and Development Stage Analysis

Although its market position is not yet prominent, Addsino Tianmu has unique competitive advantages:

1. Data Application Capability
   : Relying on the main business of aerospace defense information technology, it has deep accumulation in data processing and analysis fields
2. Military Security Qualification
   : Compared with private enterprises, it is easier to obtain classified and military-grade projects
3. Group Synergy Effect
   : Satellite manufacturing and launch capabilities within the China Aerospace Science and Industry Corporation can form synergy
4. “Space-Ground-Person” Integration
   : Full industrial chain layout of satellite operation + ground equipment + data service

China’s commercial low-orbit satellite market is on the

:

• Satellite Internet
  : Expected to reach 100 billion-level market size by2030
• Remote Sensing Data Service
  : Rapid growth in demand for land and resources monitoring, agriculture, environmental protection, etc.
• Emergency Communication
  : Rigid demand scenarios such as natural disaster rescue and maritime communication

Based on industry rules, the commercial low-orbit satellite business can be divided into the following stages:

Stage	Time Span	Expected Revenue Share	Key Milestone
Start-up Phase	2024-2025	<1%	Technical verification, small-scale pilot
Growth Phase	2026-2028	3-5%	Commercial model validated, scaled
Acceleration Phase	2029-2032	10-15%	Become an important growth engine
Maturity Phase	2033+	20%+	Stable profit and cash flow contribution

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Based on the above analysis, the investment value of Addsino Technology is reflected as:

1. Defensive
   : Military informatization main business provides stable business foundation and policy support
2. Offensive
   : Commercial low-orbit satellite business provides long-term growth imagination space
3. Valuation Support
   : The high valuation of P/B9.58x has partially reflected the market’s expectations for the future

Risk Type	Specific Description	Impact Level
Technical Risk	Long satellite constellation construction cycle, fast technology iteration	High
Market Competition	Strong competitors such as China Satcom and GalaxySpace	Medium-High
Policy Risk	Commercial aerospace regulatory policies may change	Medium
Financial Risk	Sustained loss of main business, cash flow pressure	High
Valuation Risk	Current stock price has fully reflected optimistic expectations	Medium-High

:

• ✅ Investors who are optimistic about the long-term development of China’s commercial aerospace
• ✅ Long-term investors who can bear 3-5 years of incubation
• ✅ Investors who understand the characteristics of military enterprises and pay attention to national strategies

:

• ❌ Value investors seeking short-term stable dividends
• ❌ Investors who cannot bear performance fluctuations and sharp stock price swings
• ❌ Speculators who are overly optimistic about commercial satellite business expectations

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1. Limited Short-term Impact
   : Commercial low-orbit satellite business accounts for less than1% of revenue, with negligible contribution to current finance
2. Significant Long-term Strategic Value
   : As a potential second growth curve, it provides important
   option value
   for the company
3. Valuation Partially Reflected
   : The high valuation of P/B9.58x and 300% annual increase indicate that the market has given premium pricing to the commercial satellite business
4. Key Observation Indicators
   :
   • Satellite constellation construction progress
   • Commercialization of data application services
   • Degree of synergy with military main business
   • Progress of main business turning from loss to profit

It is recommended that investors continue to track from the following dimensions:

1. Quarterly Performance
   : Focus on when the main business turns profitable and the growth rate of satellite business
2. Major Contracts
   : Large orders in satellite operation and data service fields
3. Technical Breakthrough
   : Key nodes of low-orbit satellite constellation construction
4. Policy Trends
   : National policy support for commercial aerospace and satellite internet
5. Competitor Dynamics
   : Business progress of China Satcom and GalaxySpace

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[0] Gilin API Data (including company profile, stock price data, financial indicators, market performance, etc.)

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: This analysis is for investment reference only and does not constitute investment advice. Investors should make independent judgments based on their own risk tolerance and pay attention to the company’s latest announcements and regular reports. The commercial low-orbit satellite business has high technical risks and market uncertainties, please invest cautiously.