[Click eStock] "Intellian Tech, Full-Scale Revenue from OneWeb Expected in Second Half"

KB Securities Report

[Asia Economy Reporter Minji Lee] KB Securities expressed on the 23rd that IntelianTech's performance is expected to improve due to increased sales to major customers in the second half of the year.

IntelianTech is the global No.1 company in maritime antennas, possessing a diverse product lineup including satellite communication VSAT antennas, FBB antennas, satellite broadcast reception antennas, low earth orbit satellite communication antennas, and gateways. Its major customers include global satellite communication companies such as Inmarsat, Marlink, OneWeb, SES, and Iridium, as well as large shipping companies and cruise lines like Maersk and Carnival.

Looking at the first quarter performance, sales reached 43 billion KRW and operating profit was 1.7 billion KRW, marking a 92.5% growth and a turnaround to profit compared to the same period last year. Yoon Chang-bae, a researcher at KB Securities, said, “Significant performance growth was seen due to continuous growth in maritime VSAT antennas, increased supply to cruise companies following the resumption of economic activities, and a reflective benefit from supply disruptions of competitors.”

Sales to OneWeb are expected to begin in earnest in the second half of the year. IntelianTech has been supplying antennas as the sole terminal antenna supplier to OneWeb, a global low earth orbit (LEO) satellite communication operator, since the third quarter of last year. According to a new contract replacing the existing supply contract, about 100 billion KRW worth of dual parabolic antennas will be supplied by January next year. The product lineup is expected to expand to include flat panel antennas next year.

Researcher Yoon explained, “When the second factory starts full operation in the second half of the year, production capacity will increase threefold compared to the current level,” adding, “Continuous supply to major customers including OneWeb is expected due to the growth of low earth orbit satellite communications.”

The resumption of OneWeb’s launches and coverage expansion are also anticipated. The launch schedule, which was delayed due to Russia’s suspension of space cooperation, is expected to resume from the end of this year using SpaceX launch vehicles. Researcher Yoon Chang-bae stated, “OneWeb recently announced plans to target the maritime low earth orbit satellite communication market starting next year through an MOU with maritime satellite communication company Navarino,” and added, “They are also pursuing coverage expansion by signing an MOU with the Uzbekistan government.”