[Click eStock] Intellian Tech, Target Price 85,000 Won... Coverage Initiated

Meritz Securities initiated coverage on Intellian Technologies on the 22nd, issuing a 'Buy' investment rating and setting a target price of 85,000 KRW.

Jisoo Jung, a researcher at Meritz Securities, stated in the report, "The target price was calculated by applying a target price-to-earnings ratio (PER) of 20.7 times to the expected earnings per share (EPS) of 4,076 KRW in 2025." He added, "The current stock price reflects a 2025 expected PER of 12.5 times, which we believe offers the highest valuation appeal among major domestic and international space companies."

He anticipated that Intellian Technologies would directly benefit from the growth of the global satellite communication market. Researcher Jung said, "The global satellite communication market is expected to grow at an average annual rate of 15%, from 5.4 billion USD in 2022 to 21.8 billion USD by 2032." He analyzed, "The company has emerged as a key antenna supplier for global low Earth orbit (LEO) and medium Earth orbit (MEO) operators such as OneWeb, Telesat, and SES, recording significant top-line growth from 2021 to 2023."

He projected consolidated sales of 436.8 billion KRW and operating profit of 47.6 billion KRW in 2025. Among these, sales of maritime satellite communication antennas are expected to reach 130.7 billion KRW, while sales of terrestrial satellite communication antennas are forecasted to increase by 122.4% year-on-year to 232.7 billion KRW.

Researcher Jung noted, "In particular, sales of new products such as flat panel antennas and gateway antennas are expected to grow significantly by 28.1% and 167.2% year-on-year, respectively." He added, "Although operating expenses, including ongoing R&D costs, accounted for 12.4% of sales in 2023 and impacted profitability, efficiency in operating expenses is expected to improve from 2025 onward as major new product developments are completed."