[Click eStock] "Genoco, Operating Profit Expected to Increase by 87.5% This Year"

Leading Investment & Securities forecasted on the 7th that Genoco's performance will improve this year, driven by growth in the aerospace and defense industries.

Seongman Yoo, a researcher at Leading Investment & Securities, stated, "This year's expected sales are projected to increase by 12.6% year-on-year to 57.1 billion KRW, and operating profit is expected to surge by 87.5% to 6 billion KRW."

Genoco is a company listed on KOSDAQ through a technology special case in March 2021. Its sales composition is approximately 23% satellite communications, 24% EGSE & inspection equipment, 7% avionics, and 46% core components related to the defense industry.

Researcher Yoo anticipated that Genoco will benefit from the government's ongoing establishment of the 'Aerospace Administration' and the domestic launch of 'Starlink' services in the second half of the year. He explained, "Satellite payloads were mounted on the first and second next-generation medium satellites, and the satellite bus was mounted on the first next-generation small satellite," adding, "We are expanding into the civilian market through know-how from military satellite projects (Mugunghwa 5 and military-exclusive communication satellites)."

Participation in the 'Avionics' business through the domestic small launch vehicle development project is also positive. Researcher Yoo analyzed, "Genoco's 'upper engine controller' is scheduled to be mounted on the domestic small launch vehicle."

At the same time, expectations are rising in the defense business sector. Researcher Yoon stated, "We have succeeded in domestic production of the core component, the ‘non-contact optical and optoelectronic composite cable core component,’" and added, "It is being applied to the Air Force's KF-21 system development, the Army's TC mass production, and the Navy's FFX-ⅡOOO optical connector assemblies."

Genoco plans to mass-produce more than 200 units this year by participating in the development project of the intercom (ICS) for the LAH (Light Armed Helicopter). Additionally, it is entering the unmanned aerial vehicle market by developing an integrated mission computer (IMC) applied to the XX-class UAV, with mass production scheduled to start this year, Researcher Yoo added.