[Featured Stock] Intellian Tech on the Verge of Entering Defense Market... Early Stage of Rapid Profit Growth

Intellian Technologies is showing strong performance. The increase in operating profit due to the expansion of antenna supply volumes for low Earth orbit satellites to Company A and OneWeb appears to be influencing the stock price.

As of 9:16 AM on the 26th, Intellian Technologies was trading at 62,600 KRW, up 900 KRW (1.46%) from the previous trading day.

KB Securities has raised the target price for Intellian Technologies to 84,000 KRW.

Han Yu-geon, a researcher at KB Securities, explained, "Considering the stabilization of the maritime VSAT antenna division, which underperformed last year, the expansion of antenna supply for low Earth orbit satellites, and expectations for new entry into the defense market, we have raised the target price."

He added, "The poor performance in the maritime VSAT sector was inevitable due to unfavorable conditions such as interest rate hikes and economic recession in the second half of last year, as well as reduced investments by upstream companies. We expect a turnaround starting from the first quarter of this year," and forecasted, "Sales of maritime VSAT antennas will enter a recovery phase from the second quarter."

He estimated, "This year, sales will reach 343.2 billion KRW and operating profit 22.9 billion KRW," representing increases of 12.5% and 113.7% respectively compared to last year. Furthermore, he emphasized, "Two new flat-panel antenna products will be launched over the second and third quarters. A significant portion of the flat-panel antenna volume is expected to be for OneWeb, maintaining expectations for additional future orders."

The researcher analyzed, "Intellian Technologies has signed a ‘Defense Satellite Communication Cooperation MOU’ with Hanwha Systems," and added, "They are developing mobile satellite communication terminals by combining Hanwha Systems’ chipset technology with Intellian Technologies’ antenna technology." He further explained, "The domestic military satellite project is also expanding under the leadership of private companies, and the expansion of business scope into the defense market is a positive factor."