Shinhan Investment Corp. noted on the 26th that Satrec Initiative is expected to begin turning a profit this year and generate significant results in operations starting next year. The target stock price has been raised from the previous 54,000 won to 70,000 won, and the investment opinion remains "buy."
Satrec Initiative succeeded in turning a profit this year with 44.5 billion won in revenue and 2 billion won in operating profit in the second quarter. Expectations are growing that an annual profit turnaround could be possible if this trend continues. Compared to foreign competitors, who are projected to turn a profit in 2027, the financial structure is improving rapidly. Satrec Initiative's stock price has risen 32.1% compared to the beginning of the year and 7% following the earnings announcement, reflecting this optimism.
After establishing a stable financial structure with the profit turnaround, securing clients is expected to determine the stock price. Satrec Initiative is a leading company in 30 cm-class optical satellites and is also venturing into the satellite imaging analysis business through its subsidiaries SIA and SIIS. In 2028, it plans to launch an additional satellite, and discussions for launching two more satellites for external clients are ongoing.
Heo Seong-kyu, a senior researcher at Shinhan Investment Corp., said, "Once we secure references, satellite exports are expected to proceed smoothly, so we believe we will see visible results starting next year."