Great Microwave Technology Co Ltd: Navigating the Satellite Internet Boom
In a world where connectivity is king, Great Microwave Technology Co Ltd, a prominent player listed on the Shanghai Stock Exchange, finds itself at the heart of a burgeoning industry. With a market cap of 14.61 billion CNY and a close price of 68.25 CNY as of August 21, 2025, the company is riding the wave of the satellite internet revolution. However, with a staggering price-to-earnings ratio of 200.83158, investors are left pondering the sustainability of its valuation.
The Satellite Internet License Countdown
The recent buzz around the satellite internet sector has been nothing short of electrifying. The imminent issuance of satellite internet licenses has sparked a frenzy, with the satellite ETF (159206) witnessing a significant influx of funds. This ETF, the first of its kind and the largest in its category, has seen its component stocks, including Great Microwave Technology Co Ltd, soar. On August 25, 2025, the ETF surged, with stocks like China Satellite jumping over 8% in midday trading.
Experts in the field have highlighted that the issuance of these licenses marks a pivotal step for China’s satellite internet commercial operations. However, achieving a service level akin to Starlink is estimated to take another 2 to 3 years. This development comes as the government has prioritized commercial aerospace in its work report, signaling a strong push towards establishing a robust commercial aerospace industry.
Investment Implications
The rapid expansion of the commercial aerospace sector, coupled with the strategic issuance of satellite internet licenses, presents a unique investment opportunity. However, it’s crucial to note that the industry is still in its nascent stages, with significant breakthroughs needed in satellite platform and payload manufacturing, as well as rocket launch capabilities.
Great Microwave Technology Co Ltd, with its focus on satellite manufacturing, is well-positioned to capitalize on this growth. The company’s involvement in the satellite ETF underscores its pivotal role in the commercial aerospace and satellite communication sectors. Yet, investors are advised to tread carefully, considering the high-risk nature of the industry and the speculative aspects of the ETF’s valuation.
Conclusion
As Great Microwave Technology Co Ltd navigates the satellite internet boom, its future hinges on the broader industry’s ability to overcome technical and regulatory hurdles. While the company stands to benefit from the commercial aerospace sector’s growth, the astronomical price-to-earnings ratio raises questions about its current valuation. Investors should weigh the potential rewards against the inherent risks, keeping a close eye on the industry’s evolving landscape.