[Click eStock] Beneficiaries of SpaceX See Rising Earnings Estimates
Shinhan Investment Corp. has lowered its target price for Intellian Technologies from 1,440,000 won to 1,010,000 won, while maintaining its buy rating.
On August 20, Aram Kim, Senior Research Analyst at Shinhan Investment Corp., stated, "Reflecting the weakening momentum in the space industry, we have adjusted the applied price-to-earnings ratio (PER) from 40 times to 25 times." She further added, "Nevertheless, estimates for next year's revenue and operating profit are actually rising, so a rebound is expected if the KOSDAQ rebounds or if Intellian Technologies is included in the KOSDAQ main 1st section through the KOSDAQ promotion and relegation system."
Intellian Technologies' stock closed at 153,700 won on May 26, but fell to as low as 69,200 won intraday yesterday. Kim explained, "On June 26, the stock price declined while digesting momentum related to SpaceX's listing," and emphasized, "It was merely a normalization of multiples, and there has been no damage to the fundamentals of growth."
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For the second quarter of this year, revenue and operating profit reached 9.72 billion won and 710 million won, respectively, representing increases of 30% and 305% year-on-year. Kim commented, "For terrestrial solutions, both the main product, the gateway for Company A, and the military manpack antenna, posted sales growth compared to the previous quarter," and added, "In the case of maritime solutions, the sales growth trend continued as NexusWave expands." She went on to say, "We project operating profit for this year to reach 3.21 billion won, and considering that earnings tend to be concentrated in the second half, this is entirely feasible."
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