To The Moon

My take and read on China Aerospace. (I hold Aerospace  @0.65)

Pros (Bullish Factors)

1. Strategic Government Affiliation

CASIL’s parentage links it to China Aerospace Science and Technology Corporation — a state-owned entity with deep involvement in national aerospace and defense programs. This relationship offers preferential access to large government contracts and strategic projects that other commercial players may find hard to secure.

2. Revenue Growth in Core Business

Despite headwinds in property leasing, the company’s technology industrial segment (e.g., injection-molding, PCB, semiconductors) has delivered double-digit revenue growth recently.

3. Diversified Business Mix

CASIL’s operations span multiple industrial sectors, reducing dependence on any single revenue source. In cyclical down markets (e.g., commercial property), stable manufacturing and aerospace hardware segments can soften volatility.

4. Stable Liquidity Position

Metrics showing a current ratio near 1.75 and modest debt/equity (~0.19) indicate reasonable short-term financial resilience compared to weaker peers.

Rumored LandSpace IPO – Does It Help China Aerospace (0031)?

Short answer: No material benefit for CASIL’s share performance or fundamentals.

Bottom-Line Investment Outlook

CASIL (HK:0031) merits cautious, deep fundamental scrutiny:

• Pros include state backing, diversified operations, and possible strategic leverage to national aerospace projects.

• Cons include sustained losses, valuation risk, reliance on sub-optimal segments like commercial property, and modest returns.

Rumored LandSpace benefits do not accrue to CASIL unless an unexpected merger, joint venture, or capital injection is explicitly structured — none of which is currently documented in public sources.

Investors should treat LandSpace’s IPO and CASIL’s equity case as distinct investment opportunities, not inherently synergistic ones.