Great Microwave Technology Co. Ltd.: Riding the Commercial‑Aerospace Wave in a Bullish A‑Share Market

Great Microwave Technology Co. Ltd. (GREAT MICROWAVE, 600xxx.SSE) closed the day at 215.93 CNY on 2026‑01‑22, matching its 52‑week high. The company’s market capitalisation sits at 38.52 billion CNY, with a price‑earnings ratio of 132.07—a figure that reflects the premium investors are willing to pay for companies positioned within high‑growth industrial sectors.

1. Market Context: A Surge in Commercial‑Space and Electronics

The A‑share market has displayed a persistent bullish trend in the past week. On 2026‑01‑23, the Shanghai Composite Index rose 0.33 % to 4,136.16, the Shenzhen Component Index climbed 0.79 %, and the ChiNext Index gained 0.63 %. Trading volume across the Shanghai and Shenzhen exchanges totaled 3.09 trillion CNY, an increase of 3,935 billion CNY from the previous day, signalling heightened liquidity and investor confidence.

The commercial‑space segment, in particular, experienced a “涨停潮” (limit‑up wave). Key names such as 乾照光电, 臻镭科技, and 飞沃科技 all reached their daily upper price limits, attracting significant attention from both retail and institutional investors. The satellite‑industry ETF (159218) surged more than 9 % during the day, underscoring the sector’s momentum.

Meanwhile, the electronics and high‑tech segments—especially those related to power electronics, solar photovoltaics, and aerospace components—received a substantial inflow of capital, with the “主力资金” (main‑flow capital) net outflow from the broader electronics sector totalling 13.08 billion CNY, yet the sector still posted modest gains of 0.31 %. This indicates a selective but still robust appetite for high‑tech stocks.

2. Why GREAT MICROWAVE Is Positioned to Benefit

Great Microwave’s core competency lies in the design, manufacture, and supply of microwave components for aerospace and defence applications. Its product portfolio includes high‑frequency amplifiers, waveguides, and precision RF modules that are essential in satellite transceivers, radar systems, and space communication payloads.

Given the current market enthusiasm for commercial‑space ventures, companies that provide critical subsystems are likely to receive heightened visibility and investment. The 52‑week high achieved by Great Microwave on 2026‑01‑22 suggests that the market has already priced in part of this upside, but the recent surge in aerospace‑related stocks provides further upside potential.

Additionally, the company’s low valuation relative to its earnings—while still premium—may represent a more favourable entry point for investors seeking exposure to the rapidly expanding space‑tech corridor. With a price‑earnings ratio of 132.07, the valuation remains steep compared to traditional manufacturing peers but aligns with the high‑growth expectations of the sector.

3. Competitive Landscape and Market Share

Great Microwave is one of several Chinese manufacturers supplying microwave components to the aerospace industry. Its closest competitors include companies such as 碧海通信, 海光科技, and 华尔科半导体, all of which have secured contracts with state‑run space agencies and commercial satellite operators.

The recent limit‑up activity in the sector suggests that these competitors are also benefiting from the same market forces. However, Great Microwave’s established relationships with major satellite operators and its robust R&D pipeline give it a competitive edge in securing long‑term supply agreements.

4. Risks and Considerations

While the commercial‑space bubble presents a lucrative opportunity, investors should remain cognisant of the following risks:

  1. Valuation Sensitivity – The 132.07 P/E ratio indicates a high premium; any slowdown in the space‑tech boom could trigger a valuation correction.
  2. Regulatory and Geopolitical Factors – Export controls and trade tensions may impact the ability to supply certain overseas customers.
  3. Supply‑Chain Constraints – Semiconductor shortages and logistics disruptions could affect component availability and production timelines.

5. Outlook

Looking ahead, the continued expansion of China’s commercial‑space program, coupled with an increasing demand for satellite‑based services (e.g., broadband, navigation, Earth observation), is expected to sustain upward pressure on the prices of core microwave components. Great Microwave, with its deep technical expertise and existing customer base, is well positioned to capture a share of this growth.

For investors seeking exposure to high‑growth industrial segments, Great Microwave offers an opportunity to participate in the evolving commercial‑space ecosystem while maintaining a focus on a company that delivers essential, high‑performance microwave solutions.