[Click e-Stock] "Satrec Initiative Expected to Continue Growth Next Year"

On November 19, LS Securities analyzed that Satrec Initiative is expected to continue its growth next year, as the pace of its small cluster satellite business is accelerating. The investment opinion was upgraded to 'Buy', while the target price was maintained at 67,000 won.

Choi Jeonghwan, a researcher at LS Securities, stated, "The recognition speed of progress for the small cluster satellite project, which has a delivery deadline in 2027, will accelerate further next year," and added, "Consolidated annual sales in 2026 are expected to reach 222 billion won, a 14.3% increase compared to the previous year."

He further explained, "Revenue recognition for the SpaceEye-T satellite lease contract signed in September this year is expected to begin in the fourth quarter, and accordingly, depreciation expenses will also be recognized. For this long-term satellite lease contract, revenue is recognized when the contracting party issues a purchase order (PO)."

He emphasized, "In the short term, the recognition of depreciation expenses for in-house satellites may be disappointing in terms of margin rate, but we believe that economies of scale can be achieved through additional satellite lease contracts."

Satrec Initiative recorded sales of 50.4 billion won and operating profit of 2.5 billion won in the third quarter of this year. This represents an increase of 15.4% and 213.1%, respectively, compared to the same period last year. He commented, "The progress rate of domestic order-based projects is similar to that of the third quarter last year," and added, "It appears that the satellite lease contract signed in September this year was not reflected in the third quarter sales."

This content was produced with the assistance of AI translation services.