Kenkoua Aerospace Adds 'UAM' Wings to 'Space' Power

[Asia Economy Reporter Jang Hyowon] Aerospace company KenkoAerospace is expected to turn a profit this year, according to an analysis.

KenkoAerospace is the first domestic company listed under Tesla requirements. It mainly conducts material distribution and manufacturing of aircraft parts targeting domestic and US aerospace manufacturers. Its largest client is a supplier of aircraft parts to Boeing in the US, and it also trades with major US aerospace companies such as Lockheed Martin and SpaceX.

In particular, the passenger aircraft modification business, prepared since 2017, is expected to shine this year. The Airbus commercial aircraft modification business secured a total of 400 billion KRW in orders over 2020 and last year, successfully leading a change in the business portfolio. The sales composition also diversified, with Boeing commercial aircraft-related business accounting for 56% until 2020, but from this year Airbus is expected to account for 38%, Boeing 35%, and Korea-US defense projects 17%.

Choi Jinmyung, a researcher at NH Investment & Securities, explained, “The entry into the cargo aircraft modification business for Airbus passenger aircraft has emerged as a new growth engine,” adding, “It grew to nearly 30% of total sales last year and is expected to double in volume this year.”

Along with passenger aircraft modification, KenkoAerospace is also expected to stand out in space development and the urban air mobility (UAM) market. KenkoAerospace has supplied special raw materials to major clients such as NASA and Blue Origin for 10 years and is registered as a NASA Artemis partner, supplying parts related to the SLS (Space Launch System). The SLS is NASA’s next-generation large rocket, scheduled for launch between March and April this year.

Domestically, UAM market preemption is also anticipated. Recently, KenkoAerospace signed partnerships with flying car company Volocopter and urban airport company Skyports, followed by a memorandum of understanding (MOU) with Jeju Island.

Yoon Changbae, a researcher at KB Securities, said, “Commercialization of cargo drones and development of air taxi infrastructure in Jeju’s island region are underway, and compared to other regions, Jeju is expected to be the fastest to launch UAM commercially,” adding, “Market preemption is expected in areas such as UAM operation and aircraft assembly.”