[Special Stock] Kenko Aerospace Rises on Government's 870 Billion Investment to Realize Space Economy

Kenkoreaerospace is showing strong performance. This is interpreted as being influenced by the news that the government will invest 870 billion KRW to promote space development.

As of 10 a.m. on the 31st, Kenkoreaerospace is trading at 18,250 KRW, up 4.89% compared to the previous day.

On the same day, the government will process 10 agenda items including the '2023 Space Development Promotion Implementation Plan.' According to the agenda, the government will invest 874.2 billion KRW in space development this year to accelerate the realization of the space economy.

This amount is a 19.5% increase compared to 731.6 billion KRW in the previous year. Through the expanded budget, the government plans to focus investment on achieving the five major missions presented in the 4th Basic Plan for Space Development Promotion (2023?2027), including space exploration, space transportation, space industry, space security, and space science.

They will also approve the '3rd Launch Permit Review Result (Draft)' which includes conducting the 3rd launch of the Korean launch vehicle (Nuriho) between mid-May and late June. The detailed date and time will be decided in April through the Launch Management Committee, considering the satellite preparation status and launch conditions.

Meanwhile, Kenkoreaerospace is establishing itself as a leading company in the global aerospace value chain. Due to the boom in the front markets such as air transportation, aircraft production has also entered a boom period, leading to business expansion proposals from existing clients as well as new business proposals from global aviation companies. The company plans to diversify its business portfolio through various new businesses such as space satellite imagery.

Last year, it recorded its best performance since its establishment. On a consolidated basis, operating profit and net profit for last year were 8 billion KRW and 3.2 billion KRW respectively, achieving a turnaround. During the same period, sales reached 75.9 billion KRW, a 39% increase compared to the previous year, marking the eighth consecutive quarter of record-high performance.