Shenzhen Sunway Communication (300136 CH) (Buy) - Likely satellite content gain and CE ramp-up

Research evidence excerpt

Shenzhen Sunway Communication (300136 CH) (Buy) - Likely satellite content gain and CE ramp-up

Global Markets Research

Shenzhen Sunway Communication 300136.SZ 300136 CH 8 June 2026

EQUITY: TECHNOLOGY

RatingLikely satellite content gain and CE ramp-up Remains Buy

Target priceDense China launches may lift the satellite story; AI Increased from CNY 138.00device likely underpins consumer electronics growth CNY 87.00

Likely content gain at US client and China satellite deployment accelerates Closing8 June 2026price CNY 103.65

Based on our industry survey, Sunway may have received new qualification requests for

components from one US client, which we believe could lift the content value per terminal Implied upside +33.1%

over time as the client’s ground-segment build-out scales. In China, the Spacesail/G60

constellation is entering a dense launch phase across June-July 2026, with as many as Market Cap (USD mn) 14,779.2

six launches planned in June alone. Based on our industry survey, full-year launches ADT (USD mn) 1,165.5

could exceed >200 satellites, supporting the operator's stated target of 324 satellites in

orbit by the year-end. From July, the GW constellation should take the baton with high- Relative performance chart

frequency launches, lifting total 2026 launches above 300, while a second-generation

satellite tender is, in our view, likely to land. Sunway is positioned as a direct beneficiary

of this accelerating, multi-operator deployment cadence, which we see as the principal

driver of its higher-margin satellite revenue mix.

AI hardware content ramp-up; MLCC orders and buyback come into view

In consumer electronics, one US client’s first AI hardware device is likely shaping up as a

key incremental driver for Sunway.