[Stock in Focus] Lumir Surges Over 10% on Hopes for National Satellite Project Resumption

With attention focused on whether the national satellite project will resume, shares of Lumir are showing strong performance.

As of 11:00 a.m. on August 1, Lumir was trading at 8,030 KRW, up 790 KRW (10.91%) from the previous trading day.

On this day, Meritz Securities maintained its "Buy" investment rating on Lumir. The target price was revised downward from 13,000 KRW to 12,500 KRW to reflect changes in earnings estimates.

Jung Jisoo, a researcher at Meritz Securities, analyzed, "With an increase in government projects related to ultra-small, ultra-high-resolution SAR (radar sensors) in June and July, the likelihood of the national satellite project resuming in the second half of the year has increased."

This year, sales are projected at 15.1 billion KRW, with an operating loss of 900 million KRW. Jung stated, "Satellite manufacturing sales are expected to decrease by 3.2% year-on-year to 10.4 billion KRW," and added, "Although there were expectations for participation in multiple national satellite projects such as multi-purpose practical satellites, lunar exploration satellites, on-orbit technology verification satellites, and low-orbit meteorological satellites, plans to promote these projects remained sluggish through the first half of the year."

Nevertheless, Jung highlighted, "It is positive that the number of government projects related to SAR increased in June and July compared to May, raising the possibility of order normalization," and added, "In the civilian sector, the effect of expanding production facilities is expected to gradually appear due to increased demand for solenoids used in ship engine fuel control valves."

Jung also noted, "The Lumir X No.1 satellite, which aims to pioneer the satellite service market, is scheduled to complete development by the end of this year and be launched in March or April next year," and added, "There is high anticipated demand from both domestic and international customers for the ultra-small SAR satellite Lumir X, which has a resolution of 0.3 meters."

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