[Market Focus]LEO Business Growth... Intellian Technologies Jumps Over 8%

Amid expectations that the global LEO (low Earth orbit) satellite communication network market will enter a full-fledged expansion phase, the share price of Intellian Technologies, a domestic satellite communication solutions company, is showing strong performance.

As of 10:03 a.m. on the 25th, Intellian Technologies was trading at 120,000 won, up 9,200 won (8.30%) from the previous trading day.

On this day, Kiwoom Securities stated regarding Intellian Technologies, "As the LEO communication network business of its major clients gains momentum, it is expected to drive mid- to long-term earnings growth. It is time to focus on the fact that full-scale profit generation in the space industry is beginning," while maintaining its "Buy" investment opinion and raising its target price from 69,000 won to 170,000 won.

Previously, Intellian Technologies posted an operating profit of 19.8 billion won in the fourth quarter of last year, swinging to a profit. Revenue came in at 124.3 billion won, up 61.3% year-on-year. As orders from major clients increased, sales in the LEO business segment grew rapidly.

Han-Gyeol Lee, an analyst at Kiwoom Securities, commented, "It is encouraging that the gross margin improved by 3.1 percentage points year-on-year thanks to higher sales of highly profitable gateways and military antennas," adding, "Through cost controls such as streamlining development expenses and development service fees received from clients, selling, general and administrative expenses fell 13% year-on-year, leading to a sharp improvement in profitability."

Lee added, "Intellian Technologies has a diverse ESA (electronically steered array) product lineup for maritime, ground, mobile, and military applications, enabling customized responses to client demand," and projected, "From next year, aviation products will be added, further expanding its coverage."

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