NH Investment & Securities on the 9th said Satrec Initiative is expected to benefit as a valuation reassessment across the global space industry unfolds on expectations for SpaceX's listing.
At the same time, it raised the target price 29.5% to 129,500 won from 100,000 won and maintained a "buy" investment opinion. The previous trading day's closing price of Satrec Initiative was 110,800 won.
Satrec Initiative's fourth-quarter revenue and operating profit last year are expected to be 67 billion won and 5 billion won, up 37.4% and 273.5% from a year earlier.
Projects awarded are being carried out in earnest, and from the fourth quarter of last year, rental revenue from SpaceEye-T is also reflected. On an annual basis, the first operating profit since 2021 is anticipated.
Lee Jae-gwang, an analyst at NH Investment & Securities, said, "After reports in Jan. about SpaceX's listing, valuations in the global space industry have been rising," and added, "A reassessment of Satrec Initiative, which is at a global top-tier level in observation satellites, is also reasonable."
The analyst projected that demand for observation satellites for defense purposes will show an upward trend amid rising global security threats. Lee said, "New orders for observation satellites at home and abroad and overseas lease contracts for SpaceEye-T, the company's own satellite, will continue."