Kenkou Aerospace, 3Q Cumulative Sales of 39.3 Billion KRW... "Surpassing Last Year"

[Asia Economy Reporter Hyunseok Yoo] Kenkoa Aerospace achieved its highest quarterly performance ever, driven by the stabilization of mass production in its cargo aircraft conversion business (PTF Conversion) and new order projects.

Kenkoa Aerospace announced on the 15th that its cumulative sales for the third quarter reached 39.3 billion KRW, surpassing last year's sales.

Third-quarter sales reached 15.2 billion KRW, a 136% increase compared to the same period last year, while operating losses during the same period were significantly reduced from 4.8 billion KRW in the second quarter of this year to 2.2 billion KRW.

The cargo aircraft conversion business, which began full-scale export shipments in April, entered full-scale mass production, driving sales growth in the third quarter. Following the current project worth 260 billion KRW, Kenkoa secured an additional 120 billion KRW project in October, significantly increasing its order contracts that will lead future performance growth.

The large-scale cargo aircraft conversion MRO business is progressing smoothly, overshadowing the large assembly business. The Boeing B767 model and Boeing light attack helicopter projects have also entered mass production stabilization, accelerating performance growth.

Although operating losses were recorded initially due to the reflection of initial cost rates in the early stages of the projects, as mass production stabilizes, the cost rate has improved significantly each quarter, reducing the operating loss margin. Based on this trend, an earlier-than-expected turnaround to operating profit appears possible.

The Artemis project in the United States successfully completed delivery for the first launch vehicle this quarter and is currently preparing for production of the second vehicle. Investment in the U.S. space business is also progressing smoothly, raising expectations for performance growth in the remaining fourth quarter and next year.

Min-kyu Lee, CEO of Kenkoa, stated, “With the expansion of e-commerce and increased vaccination rates, the aviation sector is expected to recover faster than anticipated in the With-Corona era. Although we went through difficult times, Kenkoa recovered its performance in just one year and restored its pre-pandemic growth faster than anyone else.”

He added, “The company was able to quickly overcome the crisis by conducting a wide spectrum of businesses in the global aerospace industry, allowing flexible responses to the crisis. Kenkoa, which turned the unprecedented COVID-19 crisis into an opportunity, is expected to continue its steep growth trajectory.”