[Click eStock] "Genoco Expects Business Synergy After Acquiring KAI"

NH Investment & Securities analyzed on the 10th that Genoco is expected to achieve business synergy following Korea Aerospace Industries (KAI)'s acquisition of its management rights. They forecast that starting with a recovery in this year's performance, the company will enter a high-growth performance phase over the next 2 to 3 years.

Researcher Kang Kyung-geun of NH Investment & Securities stated, "KAI's performance will rapidly grow thanks to the start of KF-21 mass production, overseas orders for the FA-50, and increased mass production of the Light Armed Helicopter (LAH)." He explained, "Genoco supplies key components (DA, IBU, ISC, IMC, etc.) for KAI's FA-50, KF-21, LAH, and unmanned aerial vehicles."

He added, "Going forward, the company will expand domestically produced components in the avionics equipment sector," and "maintenance, repair, and overhaul (MRO) business linkage is also expected."

Researcher Kang analyzed, "The order backlog at the end of the fourth quarter last year was 93.24 billion KRW," and "orders are expected to increase as reflected by the signing of main contracts with global aerospace companies in the second half of this year, the ANASIS-III ground station construction project, and the full-scale business launch following the incorporation of KAI's subsidiaries."