## Shengda Technology Surges to a High of 628 Yuan, Low Earth Orbit Satellite Business Drives Fundamental Strength with Explosive Growth

Market confidence in Shengda Technology (3491) has clearly increased. The communication satellite component manufacturer’s stock price has recently hit new highs, surpassing 600 yuan last week and continuing to rise, closing today at 628 yuan. The core driver behind the stock price increase is the company's performance in the low earth orbit satellite sector.

## Monthly Profit Hits New High, November Operations See Significant Growth

Shengda Technology announced its November unaudited financial results today, showing impressive performance. Monthly revenue reached 285 million yuan, setting a new record, with a year-over-year increase of 48%; net profit after tax was 86 million yuan, equivalent to earnings per share of 1.3 yuan, up 13% from the same period last year.

Compared to the third quarter’s revenue of 484 million yuan and net profit of 88 million yuan, November’s single-month operations have clearly warmed up. The cumulative revenue for the first 11 months of this year reached 2.132 billion yuan, a 1.34% increase year-over-year, also hitting a new high for the same period. The cumulative net profit after tax for the first three quarters was 303 million yuan, with earnings per share of 4.6 yuan, slightly down from the same period last year but still the second-best level for the period.

## Low Earth Orbit Satellite Orders Explode, Revenue Share Surpasses 65%

The main growth driver comes from the booming demand in the low earth orbit satellite business. Shengda Technology has long been involved in satellite applications and has successfully integrated its product lines into satellite bodies, covering communication payloads, remote sensing tracking and command systems (TT&C), inter-satellite links (ISL), and direct-to-device (D2C) applications. Among these, TT&C and ISL new products have started shipping in the fourth quarter, with capacity gradually increasing.

Currently, satellite components account for about 65% of revenue, with ground station contributions at 35%. The low earth orbit satellite sector is the growth engine, contributing approximately 58% in September, nearly 70% in October, and further increasing to 64.5% in November. In the first 11 months of this year, revenue from low earth orbit satellites has already reached 1.2 billion yuan, far exceeding last year’s total of 1 billion yuan, indicating very strong growth momentum.

Shengda Technology currently holds over 1 billion yuan in low earth orbit satellite orders, giving strong confidence in Q4 and future performance. Analysts expect December shipments to be better than the previous two months, leading to significantly better low earth orbit satellite revenue in Q4 compared to the first three quarters. The company is also optimistic that by 2026, the revenue scale of this business will at least double from the current level.

## Customer Base Expansion, New Business Opportunities Gradually Materialize

In addition to its existing major low earth orbit satellite operators, Shengda Technology is actively developing small and medium-sized satellite companies. Currently, about five potential high-collaboration partners have been identified. One has already become a customer, planning to launch satellites next year; another is expected to start trading and enter the sample testing phase next year, which could become a new growth driver in the medium term.

Furthermore, Shengda Technology continues to focus on emerging applications such as space AI centers and space solar power, and has begun collaborations with startups to explore future business opportunities.