[Click eStock] "AP Wises, Earnings Improvement Expected with New Product Launch"

Hana Securities forecasted on the 28th that AP Satellite's performance is likely to improve due to the launch of new products.

Seongho Kim, a researcher at Hana Securities, explained, "Previously, satellite networks were mainly used in remote areas like deserts," adding, "With the introduction of low-earth orbit small satellites, demand for terminals is increasing."

He continued, "AP Satellite supplies about 50,000 terminals annually to its global client Turaya, maintaining profitability," and added, "They have secured price competitiveness by possessing integrated semiconductor chip technology for satellite communication, which is a core technology of the terminals."

Researcher Kim stated, "The client is launching a new product this year," and "Since it resembles a smartphone and applies satellite communication networks, the average selling price (ASP) is expected to rise compared to existing products." He emphasized, "Deliveries to the client are expected to start from August this year," estimating the volume at about 20,000 units.

He analyzed, "The expected volume of satellite communication terminals this year is about 70,000 units, which is a 40% increase compared to before," and "The satellite system business is also expected to grow in the mid to long term." He added, "Under the supervision of the Ministry of Science and ICT, the Korean Positioning System (KPS) project and the observation satellite Arirang 7B are being prepared," and "From the second quarter of this year, space projects such as the launch of ultra-small cluster satellites and the development of a lunar probe will be actively carried out."

Researcher Kim explained, "AP Satellite's expectations for additional orders are valid based on its own technological capabilities and past order references," and "Its unique technological strength in data storage processing devices and satellite onboard computers limits the entry of competitors."

AP Satellite is estimated to record sales of 61.3 billion KRW and operating profit of 11.2 billion KRW this year, representing increases of 24.0% and 11.1%, respectively, compared to last year.