While the global capital market was recently abuzz with SpaceX's record-breaking IPO, the Chinese commercial aerospace sector will ride the tide with a clearer market valuation model and strong government support, said experts on Monday.
Following the 0.88 percent average gain on Friday, when SpaceX's price soared 19 percent on its first day on the Nasdaq, A-share commercial aerospace companies posted a further 2.96 percent increase on Monday, with the benchmark Shanghai Composite Index closing 1.61 percent higher.
Experts from Founder Securities said SpaceX's debut has provided the global commercial aerospace industry with a mainstream and highly representative open market valuation model. A-share market sentiment will be bolstered, helping investors regard commercial aerospace as a technology industry offering greater growth potential.
The price-to-sales ratio is now around eightfold to tenfold for A-share commercial aerospace companies, while SpaceX's implied price-to-sales ratio is as high as 65 to 100 times, said Tian Lihui, a finance professor at Nankai University.
The worldwide enthusiasm for SpaceX will help accelerate the deeper revaluation and restructuring of the Chinese A-share commercial aerospace sector, directing more capital to industry leaders possessing core technologies and large-scale operations, Tian said.
