[Click eStock] "Intellian Technologies, Increased Performance Pressure in Second Half ... Target Price Down"

Target Price Revised Down from 87,000 Won to 71,000 Won

On the 28th, KB Securities downgraded the target price of Intellian Technologies from 87,000 KRW to 71,000 KRW, anticipating increased performance pressure in the second half of the year. The investment rating was maintained as 'Buy.'

Han Yu-geon, a researcher at KB Securities, explained, "The target price downgrade is due to the expected decrease in sales of maritime ultra-small satellite VSAT antennas in the first half of this year compared to the same period last year, a high fixed cost level, and the resulting weakening of annual profit momentum."

Intellian Technologies' second-quarter performance this year is expected to fall short of market expectations. Researcher Han said, "The expected sales for the second quarter are 76.5 billion KRW, down 12.7% year-on-year, and operating profit is expected to decrease by 90.2% to 800 million KRW, falling short of market expectations. Despite the seasonal peak in the second quarter for maritime VSAT antennas, growth is expected to be limited. The expected sales for maritime antennas this year are projected at 204.8 billion KRW, approximately 10% lower than last year." He added, "The main reasons for the slowdown in growth are considered to be a decrease in new order volume due to the merger of Emersat and Viasat and business restructuring, as well as waiting demand for new products following the launch of flat-panel antennas."

Performance pressure is expected to increase in the second half of the year. Researcher Han stated, "Overall, a pattern of lower first half and higher second half is expected for the year, but to achieve sales exceeding 327 billion KRW this year, an average quarterly sales of over 100 billion KRW in the second half is necessary, which will increase performance pressure in the second half." He forecasted, "This will only be achievable if there is a clear sales recovery of maritime VSAT antennas and significant orders for flat-panel antennas for OneWeb, supported by distinct momentum."