[Click eStock] "Contec, Earnings Improvement Expected Due to Increase in Observation Satellites"

Hana Securities forecasted on the 24th that Contec's sales will increase significantly, leading to a turnaround to profitability next year.

Kim Doohyun, a researcher at Hana Securities, explained, "Observation satellites need to capture as many images as possible," adding, "Since there is a limit to the data memory storage space within the satellite, data must be transmitted to the ground station after capturing specific areas."

He continued, "Contec established a private ground station in Jeju Island in 2019 and currently owns a total of 10 proprietary ground stations worldwide," noting, "They receive data from client satellites through their own ground stations and charge fees for this service."

Furthermore, "Contec is uniquely positioned in Korea as a company that has built a downstream value chain in the space industry through ground station system engineering solutions and GSaaS network solutions," emphasizing, "From the client's perspective, using Contec's solutions can be more cost-effective than installing their own ground stations and handling data transmission and reception."

He added, "As the space industry grows, the number of clients will continue to increase," stating, "Contec is currently constructing five additional proprietary ground stations." He also predicted, "With the increase in ground station construction, the sales proportion of GSaaS solutions will rise," and "GSaaS solution performance will be a driving force for overall corporate profitability improvement."

Researcher Kim expressed his expectation: "It is anticipated that profitability can be achieved next year."