[Featured Stock] Kencoa Captures Both NASA and SpaceX... Supports Trump's Mars Policy Locally in the US

Kencoa Aerospace is showing strong performance. On the 20th (local time), U.S. President Donald Trump announced in his inaugural speech that "we will pursue our 'manifest destiny' to send American astronauts to Mars and plant the American flag," which appears to be influencing the stock price.

The second Trump administration is expected to pursue an aggressive space exploration policy. Private space development led by SpaceX has proven its economic viability and is presenting a new paradigm for the space industry. Earlier, in his victory speech last November, President Trump also emphasized the innovation of SpaceX's Starlink and Starship.

At 11:03 a.m. on the 22nd, Kencoa Aerospace was trading at 12,220 KRW, up 11.9% from the previous day.

Kencoa Aerospace supplies special raw materials used in space and aircraft and is responsible for producing parts related to space launch vehicles and satellites. It has geopolitical strengths covering Asia and the entire North American continent, including Korea, Georgia, and California in the United States. It operates 'California Metal & Supply Inc' in California and 'Kencoa Aerospace LLC' in Georgia, USA. It conducts business activities such as manufacturing, development, marketing, and sales of major products. Nearly 20 years of Tier 1 partner technology and Korea's relatively low cost competitiveness compared to the U.S. provide a wide range of options for new business orders.

Major customers include commercial aircraft manufacturers such as Boeing, Spirit AeroSystems, and Gulfstream, defense aircraft manufacturers such as Boeing, Lockheed Martin, and Pratt & Whitney, and space companies such as NASA, SpaceX, and Blue Origin. Domestic clients include Korea Aerospace Industries, Korean Air, and Hanwha Aerospace.

Due to the nature of the aerospace industry, costs are high in the early stages of new order projects because of material costs, labor costs, and defect rates, but profitability gradually improves through increased production efficiency and accumulated know-how. It is expected that both sales and profits will increase after the stabilization of mass production of highly profitable new orders and factory expansion. The ability to provide total aerospace solutions is considered Kencoa Aerospace's greatest strength. It can handle all areas from raw materials to finished products and maintenance. It offers customized services by managing design, certification, and quality control. It collaborates with global companies such as Boeing, Airbus, Lockheed Martin, NASA, and SpaceX. Kencoa USA has been selected as a Tier 1 partner. It is expected that performance growth will sharply increase from next year when the first and second factories under expansion begin full operation. The company plans to enter the space business by supplying special materials and parts centered in the U.S. space sector and investing in U.S. space startups. It is also preparing to diversify its business into data analysis and orbit management.

Researcher Hansong Hyup from Daishin Securities explained, "As of the end of 2023, the order backlog amounts to about 850 billion KRW," adding, "We plan to more than double the production capacity of plants 1 and 2 this year." He continued, "Production line expansion is also underway in North America," and "this will proactively respond to the increasing order volume while improving profitability through increased internalization."

The researcher said, "Kencoa Aerospace is an aerospace supplier that survived the COVID-19 crisis with differentiated technology and quality," and predicted, "If aggressive new order activities, large-scale facility investments to support them, and strengthening of its position within the global supply chain proceed smoothly, it will continue high growth in the mid to long term."