EQS-News: What is HKATG (SEHK:1725)? A mini SpaceX or the next space giant

What is HKATG (SEHK:1725)? A mini SpaceX or the next space giant

 

On 14 Sep 2021, SpaceX launched a full stack of 60 Starlink satellites on one of its fleet leaders. The appetite for a SpaceX IPO has been growing over the past years, yet a concrete timetable for an IPO remains uncertain. While SpaceX is still private, another listed company in Hong Kong namely Hong Kong Aerospace Technology Group Limited ("HKATG")(SEHK:1725) opens up a world of opportunity for investors to invest in the space industry.

 

Starlink is SpaceX's capital-intensive project to build an interconnected internet network with thousands of satellites, known in the space industry as a constellation, designed to deliver high-speed internet to consumers anywhere on the planet. Users of SpaceX's Starlink satellite internet service has grown dramatically from 10,000 in February 2021 to 69,420 in Jun 2021, while it now serves about 90,000 users around the world.

 

HKATG is also developing another Starlink project. On 6 July 2021, HKATG announced the "Golden Bauhinia Constellation" project, which provides satellite data reception and application services, and remote sensing big data and AI service to develop the Group's Aerospace Business. The "Golden Bauhinia Constellation" project aims to launch 165 low-orbit, high-frequency satellites in 2020 covering the GBA and serve the world's fastest-growing urban centres. The project targets to achieve commercial application and development of communications, navigation, and remote sensing systems with global 24-hour online tracking and the ability to re-visit key areas in under 30 minutes. Showing no signs of slowing down its expansion, the Company expects to launch another satellite between October to December 2021.

 

HKATG was established in July 2019 as the first aerospace business group in Hong Kong-based on the aerospace industry chain of satellite remote sensing, satellite manufacturing, satellite navigation, satellite communications and satellite remote sensing ground receiving stations. HKATG is by far the very first listed company which is providing the satellite business. The stock price has skyrocketed from HK$2.5 on 8 April 2021 to a historical high of HK$50 on 26 April 2021 after the announcement of its General Offerings.

 

HKATG announced recently on 14 Sep 2021 to cooperate with Shanghai Institute of Microsystem and information Technology, Chinese Academy of Sciences ("SIMIT") to jointly complete the spatial verification and satellite on-orbit testing of the first aerospace-grade RISC-V high-reliability semi-conductor in China. RISC-V is a new generation of aerospace processor chips based on open source instruction set. RISC-V uses RVC (RISC-V code compression) technique to improve the program code size and also reduces the number of CPU cycles per instruction at the cost of increasing the number of instructions per program. It sacrifices code density to simplify the implementation circuitry, making aerospace-grade chips more widely used in areas including aerospace, aviation, communications, Internet-of-Things (IoT), new energy, and smart management.

 

The rapid development of international commercial aerospace makes it one of the most dynamic industries after the Internet, AI and 5G. According to the US Satellite Industry Association (SIA), commercial aerospace revenue was US$277.4 billion in 2018 and is expected to increase 10 percent per year. HKATG takes the opportunity to cooperate with various world-class institutions to capture the rapid growth of the space industry. Being the first listed company with the Starlink project, HKATG will certainly grab investors' attention and the stock price of HKATG is set to soar.