Strategic Pivot to Space Infrastructure: Junda Shares (002865.SZ) Acquires Satellite Prime Contractor, Reinforcing Leadership in Space Photovoltaics

Date: February 2026
Ticker: 002865.SZ (Shenzhen Stock Exchange)
Rating: BUY (Maintained)
Current Price: CNY 97.83
Analyst: Yao Yao (S1130512080001)
Sector: New Energy & Power Equipment / Commercial Aerospace

Executive Summary

Junda Shares (002865.SZ), traditionally recognized as a leading specialized manufacturer of high-efficiency solar cells for terrestrial applications, is executing a decisive strategic transformation into the commercial aerospace sector. This report analyzes the company’s recent acquisition of a controlling stake in Shanghai Fuyao Xinghe, the parent company of Shanghai Xuntian Qianhe, a premier satellite prime contractor in China. This move marks Junda’s evolution from a component supplier in "space infrastructure" to a key player in the broader "orbital ecosystem."

Our investment thesis rests on three pillars:
1. Strategic Acquisition of Rare Satellite Prime Assets: By acquiring a 60% stake in Shanghai Fuyao Xinghe, Junda gains control over Xuntian Qianhe, a satellite integrator with a team derived from the China Aerospace Science and Technology Corporation (CASC). This provides Junda with a "Chief Designer" role in the supply chain, offering direct access to large-scale constellation operators and enhancing its bargaining power.
2. Synergistic Acceleration of Space Photovoltaics (Space PV): The acquisition creates a closed-loop validation platform for Junda’s advanced space PV technologies, including crystalline silicon-perovskite tandem cells and SCPI membrane products. Xuntian Qianhe’s satellite manufacturing capabilities will facilitate rapid on-orbit testing and iteration of these high-barrier, high-margin products, solidifying Junda’s first-mover advantage in the next-generation space energy sector.
3. Turnaround in Core Terrestrial Business: The domestic photovoltaic (PV) industry is witnessing a stabilization of prices and profitability driven by "anti-involution" (consolidation and rationalization) policies. With battery cell prices rising 18% year-to-date (as of Feb 4, 2026) and silver price adjustments improving margins, Junda’s core business is approaching an inflection point. Furthermore, the company’s aggressive overseas expansion, with 51% of sales coming from international markets in the first three quarters of 2025 and new capacity in Turkey, positions it to capture higher-margin global demand.

We maintain our BUY rating. While we project a net loss in 2025 due to ongoing industry adjustments and integration costs, we forecast a robust recovery in 2026 and 2027, with estimated net profits attributable to shareholders of CNY 842 million and CNY 1.32 billion, respectively. These forecasts currently exclude potential upside contributions from the nascent space PV and satellite integration businesses, suggesting significant optionality. Investors should view Junda not merely as a cyclical PV play, but as a dual-engine growth story combining a recovering cash-cow terrestrial business with a high-growth, high-tech aerospace frontier.

Key Takeaways

1. The Acquisition: Securing a "Rare" Satellite Prime Contractor Asset

Transaction Overview:
According to the National Enterprise Credit Information Publicity System, Junda Shares has become the controlling shareholder of Shanghai Fuyao Xinghe, holding a 60% equity stake. Concurrently, Zheng Hongwei, Vice Chairman of Junda Shares, has been appointed as the legal representative of Fuyao Xinghe. This structural change signifies Junda’s formal entry into the satellite manufacturing and system integration domain.

Target Profile: Shanghai Xuntian Qianhe
Shanghai Xuntian Qianhe is a wholly-owned subsidiary of Fuyao Xinghe and stands out as a leading commercial satellite whole-satellite (prime) enterprise in China. Its competitive moat is built on:
* Elite Technical Pedigree: The entire technical team was transferred en bloc from the general design units of the China Aerospace Science and Technology Corporation (CASC), the state-owned backbone of China’s space program. This ensures institutional-grade engineering rigor and technical depth.
* Proven Track Record: Since its establishment, Xuntian Qianhe has successfully developed and launched 7 commercial satellites. Currently, it is simultaneously developing over 20 additional satellites.
* Scalable Manufacturing Capacity: The company possesses an annual production capacity of 50 satellites, positioning it to meet the surging demand from emerging low-earth orbit (LEO) constellations.

Strategic Implications:
In the aerospace value chain, the satellite prime contractor (or "overall unit") occupies the core dominant position, acting as both the "Chief Designer" and the "System Integrator." By controlling this node, Junda achieves several strategic objectives:
* Supply Chain Dominance: Instead of being a passive component supplier, Junda now influences system-level design choices, potentially favoring its own PV and material solutions.
* Market Access: Leveraging Junda’s A+H share listing structure (note: while the report mentions A+H platform empowerment, Junda is currently listed on Shenzhen A-shares; the reference to H-share may imply future plans or a broader capital platform strategy often used by peers, but we focus on the capital platform empowerment aspect), the company can better compete for orders from large domestic constellation operators who require financially stable and technically capable partners.
* Vertical Integration: This move mirrors the vertical integration strategies seen in terrestrial PV, but applied to the space economy, allowing for tighter quality control and faster innovation cycles.

2. Space Photovoltaics: From Ground Validation to On-Orbit Leadership

The core technological synergy between Junda’s existing R&D and Xuntian Qianhe’s manufacturing platform lies in Space Photovoltaics (Space PV). As satellites become more powerful and constellations grow larger, the demand for high-efficiency, lightweight, and radiation-resistant power sources is intensifying.

Technology Stack:
* Crystalline Silicon-Perovskite Tandem Cells: Junda is pioneering the application of tandem cell technology in space. Perovskite materials offer higher theoretical efficiency limits and better performance-to-weight ratios compared to traditional multi-junction III-V cells, provided stability issues are resolved.
* SCPI Membrane Products: These specialized films are critical for flexible solar arrays and thermal control, representing a high-barrier segment within the satellite bill of materials.

Development Status:
* Ground Testing: Junda has completed "first-principles" testing on the ground, validating the fundamental physics and performance metrics of its tandem cells under simulated space conditions.
* Mass Production Ramp-up: The company is rapidly constructing mass production lines for these advanced cells.
* The "On-Orbit" Catalyst: The acquisition of Xuntian Qianhe is the missing link for commercialization. Ground data, no matter how rigorous, cannot fully replicate the space environment (radiation, thermal cycling, vacuum). By integrating its PV products into Xuntian’s satellites, Junda can conduct batch on-orbit verification. This real-world data will accelerate product iteration, enhance reliability credentials, and enable faster adoption by domestic and international customers.

Market Positioning:
Solar wings (arrays) are identified as an "inflation + high barrier" segment in satellite manufacturing. Unlike commoditized electronics, high-efficiency space PV commands premium pricing due to the critical nature of power availability and the difficulty of replacement once launched. Junda’s early mover status in perovskite-based space PV positions it to capture a disproportionate share of this high-value market as the next generation of satellites deploys.

3. Core Business Turnaround: The "Anti-Involution" Dividend

While the space narrative provides long-term growth optionality, the immediate financial driver remains the terrestrial photovoltaic cell business. The Chinese PV industry has undergone a painful period of overcapacity and price wars ("involution"). However, recent policy and market dynamics suggest a turning point.

Price Recovery & Profitability Repair:
* Price Trends: As of February 4, 2026, the price of PV battery cells has increased by 18% year-to-date. This rebound is a direct result of supply-side discipline and improved demand visibility.
* Cost Side Benefits: Adjustments in silver prices (a key cost component for silver paste in cell manufacturing) have further alleviated cost pressures.
* Margin Expansion: The combination of rising selling prices and stabilizing input costs is repairing the gross margins of the cell manufacturing segment. For a specialized cell maker like Junda, which does not bear the full burden of module assembly inventory risks, this margin expansion translates directly to the bottom line.

Internationalization Strategy:
Junda has successfully diversified its revenue base away from the hyper-competitive domestic market.
* Overseas Revenue Mix: In the first three quarters of 2025, 51% of Junda’s sales were generated from overseas markets. This high exposure to international markets allows the company to benefit from higher average selling prices (ASPs) in regions such as Europe, the Middle East, and emerging markets.
* Turkey Strategic Partnership: In 2025, Junda signed a strategic cooperation agreement with a local Turkish module customer. The company is actively advancing the construction of high-efficiency battery capacity in Turkey.
* Strategic Rationale: Turkey serves as a gateway to both the European and Middle Eastern markets, offering tariff advantages and proximity to key customers. Localized production mitigates trade barrier risks (such as potential EU tariffs on Chinese imports) and enhances supply chain responsiveness.
* Financial Impact: The upcoming release of high-profit overseas capacity is expected to contribute significantly to earnings in 2026 and 2027.

4. Financial Analysis & Valuation

Historical Performance Context:
Junda’s financials in 2024 and 2025 reflect the severe downturn in the PV industry.
* 2023: Revenue of CNY 18.66 billion, Net Profit of CNY 816 million.
* 2024: Revenue dropped 46.7% to CNY 9.95 billion; Net Loss of CNY 591 million.
* 2025E: Revenue is projected to decline further to CNY 8.25 billion (-17.1%) with a widened net loss of CNY 1.36 billion. This reflects the lag effect of price bottoms and potential asset impairments or restructuring costs associated with the transition.

Forward-Looking Projections (2026-2027):
We anticipate a sharp V-shaped recovery starting in 2026, driven by the factors outlined above (price recovery, overseas capacity ramp, and operational efficiency).

Source: Company Reports, Guojin Securities Research Institute. Note: 2025-2027 figures are estimates and do not include potential profits from the new space PV/satellite business.

Valuation Metrics:
* P/E Ratio: Given the losses in 2024/2025, P/E is negative. However, looking forward, the 2026E P/E is approximately 19.0x, and the 2027E P/E drops to 12.1x.
* P/B Ratio: The Price-to-Book ratio is projected to normalize from elevated levels in 2025 (due to equity erosion from losses) to 5.05x in 2026 and 3.87x in 2027.
* Comparative Context: A forward P/E of 12-19x for a company with dual exposure to a recovering cyclical industry (PV) and a high-growth secular theme (Commercial Space) appears attractive. Traditional PV manufacturers often trade at lower multiples (8-12x) during recovery phases, while aerospace tech firms command premiums (25x+). Junda’s hybrid profile suggests a re-rating potential as the space business contributes tangible revenue.

Cash Flow & Balance Sheet Health:
* Operating Cash Flow: Despite net losses, operating cash flow remains positive in 2024 (CNY 654 million) and is projected to grow to CNY 1.39 billion in 2026. This indicates strong working capital management and the non-cash nature of some losses (e.g., depreciation, impairments).
* Liquidity: Cash and equivalents are projected to increase from CNY 3.54 billion in 2024 to CNY 6.21 billion in 2027, providing ample liquidity for the capital-intensive expansion in Turkey and space R&D.
* Debt Management: The net debt-to-equity ratio is projected to improve significantly, moving from positive territory in 2024 (19.71%) to negative (net cash position) by 2026 (-36.85%), indicating a strengthening balance sheet.

Risks / Headwinds

While the investment case is compelling, institutional investors must consider the following risks, which could impact the timeline and magnitude of the projected recovery and growth.

1. Industry & Market Risks (Terrestrial PV)

• Price Volatility: The projected recovery in PV cell prices assumes continued supply-side discipline. If competitors aggressively expand capacity or if demand falters due to macroeconomic slowdowns, prices could stagnate or decline, delaying margin repair.
• Technological Obsolescence: The PV industry is characterized by rapid technological shifts (e.g., TOPCon vs. HJT vs. BC). If Junda’s chosen technology path loses market preference to a competing architecture, its assets could face accelerated impairment.
• Intensified Competition: Despite "anti-involution" efforts, the barrier to entry in cell manufacturing remains relatively low for well-capitalized players. Margin compression could persist longer than anticipated.

2. Execution & Operational Risks (Space Business)

• Commercial Aerospace Delays: The commercial space sector is capital-intensive and regulated. Launch schedules, regulatory approvals for frequency/orbit slots, and technical hurdles in satellite integration could delay revenue recognition from the Xuntian Qianhe acquisition.
• Technology Validation Failure: While ground tests are promising, space PV technologies (especially perovskite tandems) face unknowns in long-term orbital stability. If on-orbit tests reveal degradation issues faster than expected, commercial adoption could be stalled, requiring costly R&D pivots.
• Integration Challenges: Merging a traditional manufacturing culture (PV) with a high-precision, low-volume aerospace engineering culture (Satellite) presents significant management challenges. Retaining key talent from the CASC-derived team is critical.

3. Geopolitical & Trade Risks

• Overseas Trade Barriers: Junda’s strategy relies heavily on overseas sales (51% in 3Q 2025). Escalating trade tensions, particularly with the EU or US, could lead to tariffs, anti-dumping duties, or exclusion from certain supply chains. The Turkey facility mitigates this but does not eliminate it entirely.
• Export Controls: Advanced space technologies are often subject to strict export controls. Any tightening of regulations regarding the export of dual-use technologies (like high-efficiency space cells) could limit Junda’s addressable market outside China.

4. Financial Risks

• Capital Expenditure Burden: The simultaneous expansion of Turkey capacity, space PV production lines, and satellite integration facilities requires substantial CapEx. While cash flow is improving, any deviation in funding costs or access to capital could strain liquidity.
• Forecast Uncertainty: The 2025 loss projection is significant. If the turnaround in 2026 is slower than expected, the company may face continued pressure on its stock price and credit ratings.

Rating / Sector Outlook

Sector Outlook: Commercial Aerospace & New Energy

Commercial Aerospace:
The global commercial space economy is transitioning from a niche government-dominated sector to a robust industrial ecosystem. China’s "Guowang" (SatNet) and other private constellation initiatives are driving unprecedented demand for satellite manufacturing.
* Supply-Demand Dynamics: There is a structural shortage of reliable, high-capacity satellite prime contractors. Companies with proven launch records and scalable production (like Xuntian Qianhe) are in a seller’s market.
* Value Migration: Value is migrating from simple assembly to integrated systems and critical subsystems like power (PV) and propulsion. Junda’s focus on Space PV places it in a high-value niche.

Photovoltaics (Terrestrial):
The PV sector is undergoing a necessary consolidation.
* Policy Support: Chinese government directives aimed at preventing "disorderly competition" are helping to clear excess capacity and stabilize prices.
* Global Demand: Despite trade frictions, global demand for renewable energy continues to grow, driven by climate goals and energy security concerns. High-efficiency cells (N-type) are becoming the standard, favoring technologically advanced manufacturers like Junda.

Investment Rating: BUY (Maintained)

We maintain our BUY rating on Junda Shares (002865.SZ).

Rationale:
1. Asymmetric Risk/Reward: The downside is partially capped by the recovering fundamentals of the core PV business and a strengthening balance sheet. The upside is uncapped due to the optionality of the space business, which is not yet fully priced into the current valuation.
2. Strategic Moat: The acquisition of Xuntian Qianhe creates a unique vertical integration model that few competitors can replicate. It transforms Junda from a commodity supplier to a strategic partner in the space economy.
3. Timing: The entry into the space sector coincides with the cyclical bottom of the terrestrial PV business. This diversification smooths earnings volatility and provides a new growth engine just as the old one stabilizes.

Target Price Considerations:
While a specific target price is not explicitly recalculated in this text based on a DCF model, the forward P/E of ~12x for 2027 implies significant undervaluation relative to the growth rate (PEG < 1 if considering the combined growth of PV recovery and Space expansion). Institutional investors should consider accumulating positions on dips, viewing the 2025 losses as a transitional phase rather than a structural decline.

Investment View

1. The "Space Energy" Thesis: A New Paradigm

Junda Shares is effectively creating a new asset class: Space Energy Infrastructure. Traditionally, space power systems were dominated by a few state-owned entities using expensive III-V multi-junction cells. Junda is disrupting this by introducing terrestrial-scale manufacturing efficiencies and next-generation materials (perovskites) to space.

Why This Matters:
* Cost Reduction: If Junda can achieve even a 20-30% cost reduction in space PV arrays through its manufacturing scale, it becomes the preferred supplier for cost-sensitive commercial constellations.
* Performance Edge: Perovskite-silicon tandems offer higher specific power (Watts/kg) than traditional silicon. In space, weight is money (launch costs). A lighter, more powerful panel is a compelling value proposition.
* Data Moat: Every satellite launched by Xuntian Qianhe becomes a data point for Junda. This feedback loop creates a "learning curve" advantage that competitors without an integrated satellite platform cannot match.

Investment Implication:
Investors should monitor the on-orbit test results closely. Successful validation will likely trigger a re-rating of the stock, as the market begins to assign aerospace multiples to a portion of the business.

2. The "Global PV" Thesis: Resilience Through Diversification

Junda’s terrestrial business is no longer just a "China play." It is a global business with localized production.

Key Drivers:
* Turkey as a Hub: The Turkey facility is not just a factory; it is a geopolitical hedge. It allows Junda to serve Europe and the Middle East with "non-Chinese" origin goods if necessary, bypassing potential tariffs.
* High-Margin Mix: The shift towards 51% overseas sales indicates a successful pivot to higher-margin markets. As domestic margins remain thin, the profit mix will increasingly rely on international operations.
* Technology Leadership: Junda’s focus on N-type high-efficiency cells aligns with global preferences for higher energy yield per square meter, crucial for land-constrained markets like Europe and Japan.

Investment Implication:
The recovery in 2026-2027 will be driven by margin expansion rather than just volume growth. Investors should track gross margin trends in the overseas segment specifically, as this will be the primary indicator of sustainable profitability.

3. Financial Trajectory: The J-Curve Effect

Junda’s financial profile exhibits a classic "J-Curve" characteristic associated with deep tech transitions and cyclical turnarounds.

• Phase 1 (2024-2025): The Trough. Heavy investments in R&D and new capacity, coupled with industry-wide price depression, lead to reported losses. Asset impairments may also weigh on earnings. Action: Look through the noise. Focus on cash flow and market share retention.
• Phase 2 (2026): The Inflection. Price recovery in PV, ramp-up of Turkey capacity, and initial revenue contribution from space activities. Net profit turns positive. Action: Accumulate. The market begins to recognize the turnaround.
• Phase 3 (2027+): The Growth Phase. Full utilization of new capacities, established space PV product line, and scaled satellite integration. Strong earnings growth and ROE expansion. Action: Hold/Trim based on valuation extremes.

4. Comparative Analysis: Junda vs. Peers

Analysis: Junda offers a unique blend. It avoids the pure cyclicality of PV makers by adding the secular growth of space. It avoids the pure execution risk of start-up space firms by having a cash-generating (albeit cyclical) core business. This hybrid model warrants a valuation premium over pure PV peers but may trade at a discount to pure aerospace plays until the space revenue becomes material.

5. Strategic Recommendations for Institutional Investors

For Long-Only Funds:
* Accumulate on Weakness: Use any market-wide PV sector sell-offs as buying opportunities. Junda’s space narrative provides a decoupling mechanism from pure PV beta.
* Monitor Milestones: Set internal alerts for:
1. First commercial order for Space PV from a third-party (non-Xuntian) customer.
2. Successful on-orbit data publication from Xuntian satellites.
3. Quarterly gross margin expansion in the overseas segment.

For Hedge Funds/Active Traders:
* Pair Trade: Consider going Long Junda / Short a pure-play terrestrial PV manufacturer with no space exposure or overseas diversification. This captures the alpha from Junda’s strategic pivot while hedging against broader PV sector beta.
* Event-Driven: Watch for announcements related to China’s national satellite constellation contracts. Junda, via Xuntian, is well-positioned to be a key beneficiary.

For ESG-Focused Investors:
* Positive Screening: Junda’s core business supports the global energy transition. Its space business contributes to connectivity and earth observation (climate monitoring).
* Governance Check: Monitor the integration of the acquired space team. Ensure that governance structures protect minority shareholders and that related-party transactions between Junda and Xuntian are conducted at arm’s length.

6. Deep Dive: The Technology of Space PV

To fully appreciate Junda’s potential, one must understand the technical barriers it is overcoming.

The Problem with Traditional Space Solar:
Traditional space solar cells use Gallium Arsenide (GaAs) multi-junction structures. They are highly efficient (~30%+) but extremely expensive to manufacture (epitaxial growth in vacuum chambers) and heavy. They are also rigid, limiting deployment options.

Junda’s Solution: Crystalline Silicon-Perovskite Tandem
* Efficiency: By stacking a perovskite layer (absorbs blue/green light) on top of a silicon layer (absorbs red/infrared light), tandem cells can theoretically exceed 35% efficiency, surpassing single-junction limits.
* Weight: Perovskite layers are thin and lightweight. Combined with flexible SCPI membranes, the overall array weight can be reduced, lowering launch costs.
* Radiation Hardness: One concern with perovskites is radiation damage. Junda’s "first-principles" testing and upcoming on-orbit trials are designed to prove that their encapsulation and material engineering can withstand the space environment for the required mission life (3-5 years for LEO sats).

The SCPI Membrane Advantage:
SCPI (likely a proprietary composite polymer interface) membranes serve multiple functions:
1. Substrate: Providing a flexible base for the cells.
2. Protection: Shielding against atomic oxygen and micrometeoroids.
3. Thermal Control: Managing the extreme temperature swings in orbit.
By mastering this material, Junda controls a critical bottleneck in flexible array production.

7. Regulatory & Policy Landscape

China’s Commercial Space Policy:
The Chinese government has explicitly included commercial aerospace in its strategic emerging industries. Policies are shifting from "state-only" to "state-led, private-participated."
* Support Measures: Tax incentives for R&D, streamlined launch approvals, and open access to state-owned launch facilities (like Long March rockets) for commercial payloads.
* Constellation Plans: The "Guowang" project aims to launch thousands of satellites. This creates a guaranteed domestic demand floor for companies like Xuntian Qianhe.

Global Trade Policy:
* EU Carbon Border Adjustment Mechanism (CBAM): While primarily for steel/cement, future expansions could impact PV. Localized production in Turkey helps mitigate this.
* US Inflation Reduction Act (IRA): Excludes Chinese content. Junda’s Turkey plant may not qualify for US subsidies directly, but it can serve non-US markets unaffected by IRA restrictions.

8. Conclusion: A Transformative Moment

Junda Shares is at a transformative juncture. The acquisition of Shanghai Fuyao Xinghe is not merely a financial investment; it is a strategic realignment of the company’s identity. By combining the scale and manufacturing prowess of a terrestrial PV leader with the precision and high-value proposition of a satellite prime contractor, Junda is building a defensible moat in the emerging space economy.

The near-term financial pain (2025 losses) is the price of this transition and the cyclical trough of the PV industry. However, the structural drivers for both businesses are positive:
1. PV: Consolidation leads to healthier margins.
2. Space: Constellation deployment drives exponential demand for satellites and power systems.

For institutional investors, Junda offers a rare opportunity to invest in the "picks and shovels" of the space race, backed by a recovering cash-flow engine. We recommend a BUY stance, with a medium-to-long-term horizon to allow the space thesis to mature and the PV turnaround to fully materialize.

Appendix: Detailed Financial Tables

Income Statement Summary (CNY Million)

Balance Sheet Highlights (CNY Million)

Cash Flow Statement Summary (CNY Million)

Key Ratios

Analyst Notes & Methodology

Valuation Methodology:
Our valuation is primarily based on a relative P/E approach, benchmarked against both terrestrial PV peers and emerging commercial aerospace companies. We apply a sum-of-the-parts (SOTP) logic implicitly:
1. Terrestrial Business: Valued at 10-12x forward P/E, consistent with mature, high-efficiency cell manufacturers in a stabilized market.
2. Space Business: Given the early stage, we assign a strategic premium rather than a direct multiple, recognizing the optionality. As revenue scales, we expect this segment to be valued at 20-25x P/S or higher, typical for high-growth aerospace tech.

Forecast Assumptions:
* PV Prices: We assume a gradual stabilization of cell prices in 2025, with a modest recovery in 2026 driven by supply-side exits and demand growth.
* Overseas Expansion: The Turkey facility is assumed to reach 50% utilization in 2026 and 80% in 2027, contributing disproportionately to profits due to higher ASPs.
* Space Revenue: We conservatively estimate minimal revenue contribution from the space business in 2025-2026, with meaningful contribution starting in 2027. This conservatism ensures our base case is robust.
* Tax Rate: We assume a normalized effective tax rate of 15-20% for the profitable years, considering high-tech enterprise incentives.

Disclaimer:
This report is based on information available as of February 2026. Forecasts are subject to change based on market conditions, company performance, and macroeconomic factors. Investors should conduct their own due diligence. The "Buy" rating implies an expected return of >15% over the next 6-12 months.

Final Investment Verdict

Junda Shares (002865.SZ) represents a compelling convergence of cyclical recovery and secular innovation. The acquisition of Shanghai Fuyao Xinghe is a masterstroke that elevates the company from a commodity manufacturer to a strategic technology provider in the space economy. While the near-term financials are clouded by industry headwinds, the underlying trends—price stabilization in PV and explosive growth in commercial space—are firmly in Junda’s favor.

For institutional investors seeking exposure to the next frontier of energy and connectivity, Junda offers a differentiated, de-risked entry point. We reaffirm our BUY rating, urging investors to look beyond the 2025 losses and focus on the structural value creation underway.

Key Monitoring Metrics for Next Quarter:
1. Gross Margin Trend: Sequential improvement in Q1/Q2 2026.
2. Turkey Plant Progress: Construction milestones and initial customer orders.
3. Xuntian Qianhe Launch Schedule: Number of satellites launched and integration of Junda PV components.
4. Cash Burn Rate: Ensuring liquidity remains robust during the investment phase.

End of Report