[Click eStock] "AP WiSeong, Satellite System Enters Full Growth Trajectory"

Hanwha Investment & Securities evaluated on the 23rd that AP Satellite is in a structural growth phase. AP Satellite is a KOSDAQ-listed company that develops satellite communication terminals and satellite systems.

Analyst Bae Seong-jo of Hanwha Investment & Securities stated in a report on the same day, "AP Satellite's satellite system business has entered a full-fledged growth trajectory and is expected to show a structural growth trend." Last year, AP Satellite's sales composition by business division consisted of 63.5% satellite communication terminals, 13.6% terminal development services, 0.3% terminal product sales, and 22.6% satellite and parts development.

Analyst Bae estimated, "This year, sales will increase by 29.89% compared to last year to 64.1 billion KRW, and operating profit will rise by 3.7% to 10.4 billion KRW." This analysis is based on the expectation that satellite communication terminals will continue stable growth at an annual rate of around 3% due to new product launches, and the satellite system business will grow more than twice with an order backlog of approximately 50 billion KRW and additional satellite project orders.

AP Satellite exclusively supplies satellite communication terminals to Thuraya, a telecommunications operator in the United Arab Emirates (UAE). Analyst Bae said, "I understand that about 20,000 new smartphone-type products will be additionally supplied starting from August this year," and predicted, "Terminal shipments will increase by about 20,000 units on top of the existing annual level of 40,000 to 50,000 units."

However, he noted, "Since last year's sales included exports of Result Transmission System (RTS) terminals, the growth rate of business division sales will be somewhat limited despite the new product launch."

This content was produced with the assistance of AI translation services.