[Click eStock] "IntalianTech, Surge in Orders... Expecting Quantum Jump in Performance"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 29th that Intellian Technologies is expected to experience performance growth due to a surge in orders for low Earth orbit satellite communication antennas. The investment opinion 'Strong Buy' and the target price of 140,000 KRW were maintained.

Jae-yoon Kim, a researcher at KTB Investment & Securities, said, "With the start of OneWeb's commercial service in November, the demand for low Earth orbit satellite communication terminal antennas is skyrocketing," adding, "On the 24th, a terminal antenna contract worth 86.6 billion KRW was signed with OneWeb, and currently, the backlog of low Earth orbit (LEO) terminal antenna orders is around 250 billion KRW, indicating a quantum leap in performance is expected."

He explained, "This new order is a contract that must be fully recognized as sales within 2022," and added, "Considering that OneWeb's service areas will expand to India, the Middle East, and Japan next year, additional orders worth several hundred billion KRW are expected."

KTB Investment & Securities forecasted that Intellian Technologies' sales and operating profit will reach 223.4 billion KRW and 23.1 billion KRW next year, respectively, representing increases of 87.0% and 3173.5% compared to the previous year. He emphasized, "The current LEO order backlog is about 250 billion KRW, so performance achievement is possible even without additional orders," and added, "Considering the increase in antenna demand due to the expansion of service areas by clients such as OneWeb and SES, a quantum leap in performance is expected with sales of 431.4 billion KRW and operating profit of 60.6 billion KRW in 2023."

He stated, "To produce low Earth orbit satellite antennas, not only technology but also the ability to mass-produce at competitive prices is an essential requirement," and noted, "Due to these high entry barriers, there are currently no competitors in the low Earth orbit satellite terminal antenna market." He continued, "Given the high possibility of acquiring new LEO customers beyond OneWeb and SES, we believe that high growth is guaranteed until 2030, when 6G, which requires LEO as a prerequisite, begins."