Heungkuk Securities on the 11th said orders for Genohco in the aerospace industry will increase, maintained its "buy (BUY)" rating, and raised its target price to 32,000 won from 20,000 won. Genohco's closing price in the previous transaction day was 26,800 won.
Genohco is a specialist aerospace corporations with technological strength in areas such as satellite communications and avionics and defense industry components.
Genohco posted 59.6 billion won in revenue last year but logged an operating loss of 2.1 billion won. Heungkuk Securities said this reflected one-off expenses such as increased research and development costs and higher testing and inspection fees to meet client specifications.
Choi Jong-gyeong, a researcher at Heungkuk Securities, said, "It is regrettable that it posted losses last year as well, following 2024, but it reflects one-off costs for upgrading to 'Genohco 3.0,'" and noted, "Revenue growth stood out for its qualitative firmness, including increased revenue in step with higher progress in satellite communications, realization of mass-production revenue in avionics, and increased sales of ground equipment in the satellite communications business."
Choi projected that this year Genohco's revenue and operating profit will reach 77.5 billion won and 1.9 billion won, respectively. That is because Genohco is expected to continue winning aerospace orders, such as signing satellite communications business contracts with Korea Aerospace Industries (KAI) and other related corporations.
Choi said, "Above all, attention should be paid to its moves within the aerospace industry," adding, "In February, it disclosed contracts including a 6.1 billion won project with STX Engine to maximize the performance of the existing military satellite communications system, and a 5.6 billion won contract with KAI to develop low Earth orbit communications satellites (6G) and onboard computers (OBC; On Board Computer)."
He added, "This indicates that the synergistic effect with Korea Aerospace Industries has begun, and additional orders in the aviation and space industries are expected to continue solidly within the year."