[Click eStock] "Intellian Technologies enters bottom-out phase from Q4... Target price up"

KB Securities analyzed on the 18th that Intellian Technologies is expected to see performance improvements starting from the fourth quarter as it enters the bottom-out phase. The investment rating was maintained at 'Buy,' and the target price was raised to 85,900 KRW.

Han Yu-geon, a researcher at KB Securities, stated, "Domestic space companies have undergone significant adjustments due to high interest rates and economic recession, and from a bottom perspective, a buying approach during the adjustment period is considered effective." He added, "When interest rates decrease, aerospace companies tend to see stock price gains, driven by government policy support, budget expansion, and growth of defense and private companies."

He explained, "Intellian Technologies has secured many customers among players related to low Earth orbit and geostationary orbit satellites, excluding SpaceX," adding, "This is expected to be a significant advantage for the company's growth in line with the growth of the aerospace market." He further noted, "OneWeb, a major customer, owns about 633 satellites and 33 gateways, and infrastructure expansion is expected following the global launch in early 2025."

In particular, the recent contract signed with Company A is also expected to act as a positive factor. Researcher Han said, "We announced a total of 155.4 billion KRW in contracts with Company A over three occasions, securing two years' worth of orders," and evaluated, "Since Intellian Technologies is judged to have gained an advantage in the multi-vendor competitive landscape, a significant portion of the volume is likely to be allocated to Intellian Technologies."

KB Securities forecasts that Intellian Technologies' sales and operating profit next year will reach 434.5 billion KRW and 33 billion KRW, respectively. Sales are expected to increase by 44.9% compared to this year, and operating profit is expected to turn positive. He emphasized, "Since this year's poor performance is considered to have been largely reflected in the stock price, a buying approach from the bottom perspective is effective."