[Special Stock] Kenkoaero, the Dream of World's Richest like Bezos and Musk... Playing a Key Role in 'Space Conquest'

[Asia Economy Reporter Hyungsoo Park] Kencoa Aerospace's stock price has been strong for two consecutive days. The news of signing the first contract related to Blue Origin and the BE-4 (Blue Engine-4) appears to have influenced the stock price.

At 9:10 a.m. on the 23rd, Kencoa Aerospace was trading at 17,300 KRW, up 5.49% from the previous day.

Kencoa Aerospace completed the vendor registration for Blue Origin after a rigorous two-year verification and preparation process the day before.

Blue Origin's BE-4 engine is the main engine for the reusable launch vehicle New Glenn. It is also supplied to Vulcan, the next launch vehicle of United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin.

The BE-4 engine is a next-generation engine using liquefied methane fuel, and Kencoa is responsible for parts required for engine production. Vulcan and New Glenn are optimized launch vehicles for sending various types of satellites into space, expected to become key next-generation launch vehicles for both NASA's existing demand and future commercial satellite launches.

Blue Origin is a private aerospace company founded in 2000 by Jeff Bezos, the founder of Amazon, for space development projects including lunar exploration and space travel. Bezos invests approximately 1 billion USD (about 1.1 trillion KRW) annually in Blue Origin. He recently resigned as Amazon CEO to focus on space development projects.

Currently, in the U.S., with expectations that Bezos will end the "Amazon era" and fully open the "Blue Origin era," the space development competition between Musk and Bezos is reigniting. In response, Kencoa is accelerating its aerospace business, starting with winning NASA's Boeing SLS-related projects and participating in Blue Origin's rocket engine business, according to the company.

Kencoa CEO Min-gyu Lee said, "We are discussing comprehensive collaborations including investments with satellite and launch vehicle companies in the U.S. and Europe," adding, "Based on this, we plan to expand our business model beyond parts production."

He added, "Please pay attention to Kencoa's moves in the explosively growing U.S. aerospace market."

Meanwhile, all of Kencoa Aerospace's U.S. subsidiaries are participating in the space industry.

Kencoa Aerospace affiliate California Metal has registered as a vendor with SpaceX and signed a raw material supply contract. It supplies special raw materials for space to NASA, SpaceX, Blue Origin, and others.

California Metal currently supplies special raw materials for the space industry to more than 30 companies in the space sector, including NASA and SpaceX. Revenue related to the space industry began to be generated in earnest since 2018. The proportion of consolidated revenue from the early stages of the business was 1%, and it is expected to grow to over 10% this year. As the U.S. space industry is explosively growing, the supply chain is currently being formed, and revenue from the launch vehicle supply chain is increasing.