[Click eStock] Intellian Technologies, 10-Year High Growth Expected "Buy Coverage Resumed"

[Asia Economy Reporter Lee Seon-ae] Hana Financial Investment announced on the 29th that it expects Intelian Tech's continued growth and has resumed coverage with a buy rating and a target price of 115,800 KRW.

The target price was calculated by applying a price-to-earnings ratio (PER) of 50.1 times to the expected 2022 earnings per share (EPS) of 2,312 KRW. The PER is the 2022 average of overseas space and satellite companies (final selections: ViaSat, Maxar Technologies). Considering the sharp growth in performance due to the expansion of medium- and low-earth orbit satellite antenna sales, expectations for securing additional customers as a unique low-earth orbit antenna operator, and sustained high growth until 2030 when 6G is expected to emerge, it was judged that the company deserves a high multiple.

Intelian Tech has signed antenna supply contracts with three of the six major medium- and low-earth orbit satellite operators (OneWeb, SES, Telesat). Since receiving its first official order from OneWeb in 2019, the number of customers has steadily increased. Along with customer diversification, production capacity has expanded to 400 billion KRW in sales, and groundwork for establishing a third factory is underway. The other three companies (SpaceX, Amazon, Iridium), whose supply contract status is not yet disclosed, are aggressively pursuing satellite projects to support and expand the group's major businesses (content platforms, security, mobility, etc.). Given Intelian Tech's already dominant position in the satellite antenna field, it is highly likely that more customers will seek cooperation.

Intelian Tech's consolidated sales and operating profit for 2022 are forecasted at 246 billion KRW (+78.3% YoY) and 23 billion KRW (+930.5% YoY), respectively.

Researcher Kim Gyu-sang of Hana Financial Investment said, "With the normalization of cruise travel, antenna orders from major cruise makers are increasing, and the supply of low-earth orbit satellite antennas is expected to accelerate in line with the service plans of low-earth orbit satellite operators." He estimated sales by business division as 208.8 billion KRW for satellite communication antennas, 11.4 billion KRW for maritime satellite broadcast reception antennas, and 25.8 billion KRW for others. He added, "Consolidated sales and operating profit for 2023 are expected to be 403.9 billion KRW (+64.2% YoY) and 45.9 billion KRW (+99.8% YoY), respectively. It is a company expected to sustain high growth, and the current stock price remains a buy zone."