Comprehensive Analysis
Event Background and Core Driving Factors
Ligong Navigation (688282) performed strongly on January 7, 2026, closing at RMB 69.95 with a daily gain of 15.43%. The closing price hit a record high, and the stock entered the strong stock pool [1][4]. The sharp rally of this stock is not an accidental event, but the result of resonance of multiple factors.
The commercial space boom is the primary catalyst.
According to the Securities Times, the Wind Commercial Space Theme Index has posted 8 consecutive up days since December 24, 2025, with a cumulative gain of over 36% [1]. Ligong Navigation has signed a supporting contract for a certain type of inertial navigation system with a domestic commercial space enterprise. According to the company’s disclosure, the value of a single rocket inertial navigation system can be as high as several million yuan depending on accuracy and functional requirements; for satellites worth hundreds of millions or even over a billion yuan, the attitude and orbit control system accounts for 15%-20% of the total satellite cost, of which gyroscopes can account for 1%-5% [2]. This provides significant imagination space for the company’s performance growth.
Institutional attention has increased significantly.
On December 19, 2025, the company received collective research visits from 25 institutions, including well-known securities firms such as Founder Securities, Pacific Securities, Northeast Securities, and Huatai Securities, as well as institutional investors like Beijing Fengyan Investment, Beijing Nuochang Investment, and Beijing Juhao Investment [3]. Research minutes show that multiple R&D projects of the company are progressing smoothly: The fiber optic inertial navigation system supporting a certain aviation project has completed the development and delivery of the first batch of products, and has completed joint test verification with the overall system; A certain type of electric steering gear supporting a certain aviation project has completed delivery of multiple batches of products, and has completed multiple target test trials with the overall system [3]. In addition, the company has also obtained research and manufacturing opportunities in aerospace, maritime, and land-based fields, with its business scope continuously expanding.
Sector effect and geopolitical catalysis form a joint force.
The defense industry sector as a whole performed strongly today, with 99 stocks hitting record closing highs [4]. Beifang Navigation (600435), a peer company, saw a gain of 9.99% today [5]. Geopolitical events such as the U.S. military operations against Venezuela have boosted market attention to the defense industry sector. The market expects that China’s defense budget will see structural growth, and the growth rate of military orders is expected to exceed 20% [6].
Technical Analysis
From a technical perspective, Ligong Navigation’s performance today shows the following characteristics:
On the strong signal side
, the closing price hit a record high, breaking through the upper resistance level, indicating strong bullish momentum. Margin traders increased their positions by over 200% (compared to the end of Q3 2025), showing strong optimism from leveraged funds towards this stock [1]. The continuous growth of margin balance provides sufficient liquidity support for the stock price.
On the risk signal side
, the single-day gain exceeds 15%, and technical indicators such as RSI may have entered the overbought zone, creating pressure for a technical pullback. Today, the defense industry sector saw a net capital outflow of RMB 1.1625 billion, indicating capital divergence within the sector [5]. After 8 consecutive up days, the commercial space index has a cumulative gain of over 36%, and the sector itself also has technical adjustment needs [1].
Fundamental Assessment
Ligong Navigation is a disciplinary company transformed from the scientific and technological achievements of Beijing Institute of Technology, established with the “Inertial Navigation and Control” team of Beijing Institute of Technology as the core. The company is committed to researching and developing high-precision inertial navigation and precise guidance control technologies adapted to complex battlefield environments, and engages in the design, development, production, and service of inertial devices, inertial navigation systems, integrated navigation systems, electric steering gear systems, RF microwave components, and microwave modules [7].
Financial data shows that the company’s 2024 operating revenue increased by 685.63% year-on-year, but net profit remained in a loss-making state, though the loss margin narrowed significantly by 79.90% [8]. R&D expenses continue to increase, reflecting the company’s strategic investment in future development. Although the company is still in a loss-making state, the trend of performance improvement is clear, and fundamental support is gradually accumulating.
Core competitiveness is reflected in the following aspects
: Possesses core technologies in the field of inertial navigation and control, undertakes R&D and production tasks for multiple model projects; Products have been batch-equipped in multiple weapon systems and entered the international military trade market; Core technical personnel of the R&D team led or participated in the development of navigation technology products that won awards such as the First Prize of National Defense Science and Technology and the Second Prize of National Defense Science and Technology Progress [7].
Key Insights
Cross-Domain Correlation Findings
The strong performance of Ligong Navigation reveals several important cross-domain correlations:
First, the boundary between commercial space and defense industry is blurring.
The company traditionally focuses on the defense industry, but its inertial navigation technology is also applicable to the commercial space sector. The signing of a supporting contract with a commercial space enterprise marks the extension of its technology from the military to the civilian field, which not only broadens the market space but also reduces the risk of single customer dependence.
Second, there is a time lag effect between institutional research and stock price performance.
The institutional research on December 19, 2025, only significantly catalyzed the stock price after about three weeks, indicating that the substantive impact of institutional research needs to be fully reflected through the fermentation of market sentiment. The over 200% increase in margin traders’ positions shows that leveraged funds are more sensitive to research information.
Third, capital flow differentiation within the sector is obvious.
Although 99 stocks in the defense industry sector hit record closing highs today, the sector saw a net capital outflow of RMB 1.1625 billion [5]. This phenomenon of “index rising, capital outflow” indicates that the current market is driven more by stock capital rotation rather than incremental capital entry, and investors need to be alert to the risk of sector rotation.
In-Depth Implication Analysis
From a broader macro perspective, the strong performance of Ligong Navigation reflects several in-depth trends:
Military technology civilianization is accelerating.
As a platform for the transformation of scientific and technological achievements of Beijing Institute of Technology, the extension of its core technology to the commercial space sector reflects the in-depth implementation of the military-civilian integration strategy. The transformation path of high-precision inertial navigation technology from military to commercial use is being opened up, and it is expected to be more widely applied in fields such as drones and autonomous driving in the future.
The market’s attention logic for the defense industry sector is changing.
Traditionally, the defense industry sector was more driven by geopolitical events, but the current independent strength of the commercial space index indicates that the market is beginning to pay more attention to the technological innovation and civilian market expansion capabilities of military enterprises.
Risks and Opportunities
Major Risk Points
Short-term technical pullback risk is prominent.
The single-day gain exceeds 15%, with excessive short-term gains, and indicators such as RSI have entered the overbought zone. If trading volume shrinks or a gap-up and drop-off trend occurs tomorrow, investors need to be alert to the formation of a short-term top. The margin balance has increased by over 200%, and a stock price pullback may trigger margin calls, further exacerbating volatility.
Fundamentals have not fully reversed.
The company is still in a loss-making state. Although the loss margin has narrowed significantly, the recovery of profitability still needs time to be verified. The short-term gain may more reflect market sentiment and sector heat, and the realization of fundamental improvement requires continuous tracking of the execution progress of commercial space contracts and the landing of orders.
Sector rotation risk cannot be ignored.
After 8 consecutive up days, the commercial space index has a cumulative gain of over 36%, and has technical adjustment needs [1]. The defense industry sector saw a net capital outflow of RMB 1.1625 billion [5], and capital divergence may trigger differentiation among individual stocks in the sector.
Opportunity Window Identification
The commercial space business has broad expansion space.
According to the company’s disclosure, the value of a single rocket inertial navigation system can reach several million yuan, and gyroscopes account for 1%-5% of the total satellite cost. With the rapid development of China’s commercial space industry, the number of satellite launches is expected to continue to grow, and the company, as a supplier of inertial navigation systems, is expected to directly benefit from industry expansion.
R&D projects are entering the harvest period one after another.
Multiple aviation, aerospace, maritime, and land-based projects of the company have completed development and delivery or entered the target test stage, and are expected to be converted into batch orders in the future, driving sustained revenue growth.
Increased institutional attention brings valuation reconstruction opportunities.
The research visits by 25 institutions reflect professional investors’ recognition of the company’s fundamentals. With the increase in institutional holdings, the company’s liquidity and valuation level are expected to see systematic improvement.
Key Information Summary
Ligong Navigation’s strong performance today is the result of the combined effect of momentum drive and improved fundamental expectations. The industry boom of the commercial space sector (8 consecutive up days with a cumulative gain of over 36%), the substantive positive news of the company signing a supporting contract with a commercial space enterprise, and the recognition of professional investors reflected in the research visits by 25 institutions, together constitute the core driving force for the short-term stock price rise [1][2][3].
From a technical perspective, the record high stock price and over 200% increase in margin traders’ positions show strong bullish momentum, but the single-day gain of over 15% also means short-term pullback pressure. Fundamentally, the company’s revenue has grown significantly, losses have narrowed, and R&D investment continues, with a clear trend of performance improvement, but it has not yet turned profitable, and fundamental support still needs time to be verified [8].
Variables that need continuous attention include
: Tomorrow’s trading volume changes (to verify the sustainability of the rally), the specific execution progress of commercial space contracts, follow-up dynamics of institutional research, and the overall capital flow of the defense industry sector. Considering the excessive short-term gain, it is recommended to closely monitor relevant information and prudently evaluate the risk-return ratio.
Data Source Confirmation
:
- [0] Internal Market Data Analysis (trading data, margin trading information)
- [1] Securities Times - Rocket Reusable Technology Boosts the Industry, Commercial Space Index Posts 8 Consecutive Gains
- [2] Science and Technology Innovation Board Daily - Commercial Space Sector Rises 80% This Year, How Industrial Players Split the Feast
- [3] Ligong Navigation - Summary of Investor Relations Activity Records (Research on December 19, 2025)
- [4] Securities Times - 99 Stocks Hit Record Closing Highs
- [5] Eastmoney - RMB 1.1625 Billion of Capital Flowed Out of Defense Industry Stocks Today
- [6] Fortune Account - U.S. Military Operations Against Venezuela, List of Core Beneficiary Stocks in A-Shares
- [7] Sohu - Ligong Navigation (688282) Company Profile
- [8] CNINFO - Ligong Navigation 2024 Annual Report Summary
